5 hacks to better manage your money this silly season

Ho ho ho, tis the season to be spending! As wonderful as the holidays are, this time of year is often the biggest hit to our budgets. The average Aussie post-festive credit card debt is a whopping $1,666, with 82% of us taking up to six months to pay that debt off*. Here’re some tips for avoiding a festive debt hangover.

Budget and pay cash

There are so many temptations to spend at this time of year. Set a budget that includes your Christmas day meal, entertainment, decorations, gifts, charitable donations and miscellaneous sundries and then assign money to each category. Implementing a cash-only system is a great way to avoid the dreaded credit card debt. Mark envelopes with the category and budget and take these shopping, leaving your cards at home. Tracking your spending via an app (try MoneyBrilliant or TrackMySpend) can make sticking to your budget easier.

Shop smart online

Shopping online for specific items you’re identified in advance can help minimise impulse purchases. Plus, a lot of sites offer sales and discounts at this time of year. Follow your favourite brands on social media, so that you get alerts when they’re offering deals, and be sure to check the sales sections of websites for what’s on offer. Use deal apps such as Groupon or LivingSocial to find bargains, but be sure to factor shipping costs into your budget.

Get creative with gifts

Gifts are the biggest expense for most of us, but it’s possible to be both generous and budget conscious. Once you’ve set your gift budget and made a list of what you want to get for whom, take time to identify where you can save. Options may include auction sites, clearance outlets or op shops and second-hand bookstores. Keep your eyes out for coupons (both online and off). Some stores will match their competitor’s lowest prices so shop around and be bold in asking for discounts.

Make, reuse, recycle

Of all the unnecessary ways to spend, expensive gift paper and overpriced cards rank right up there. Find a favourite photo and use it to make a personalised card. Get the kids to draw or make cards for relatives (adorable!). Reuse paper, boxes and ribbon to wrap gifts or wrap boxes in nice paper and then save these to be reused for family gifts next year. Making gifts is not only thrifty but personal. Go beyond jars of jam by crafting something, curating a playlist for someone, or offering gift vouchers for your services cooking, gardening, cleaning or babysitting for friends and family.

Reduce food waste

Pretty much everyone over caters for Christmas Day. While abundance is part of the fun, it doesn’t have to be unnecessarily costly and wasteful. The NSW Environmental Protection Agency’s Love Food Hate Waste site offers tips on meal planning, shopping, and using up leftovers creatively. There’s even a nifty interactive tool that can show you exactly how much food you’ll need per head. Simply enter in the type of food (e.g. beef, salad or seafood), the number of guests, and how many adults and kids to generate a waste-proof shopping list.

If you do find yourself in budget woes post Christmas, don’t panic there are options out there to help you get back on track. Contact us to find out how we can help you repair your credit report or take control of your debt.

*Source: ASIC MoneySmart