Many West Aussies are feeling the pinch from the rising cost of living, with essentials like fuel, groceries, and running the home on the rise.
This holiday season, you might be planning to tighten your belts and spend a bit less on festivities - and you are not alone. According to the 13th edition of Deloitte’s annual Retail Holiday Report, shoppers are looking to spend nearly 18.9% less than 2023, averaging $1,002 each, compared to $1,192 per person last year. Of those surveyed, 76% are cutting back on spending overall, but 67% are still looking to make small splurges. To help spread some pre-festive season cheer we've created 12 budgeting tips to help you enjoy the season and curb some dreaded January bank statement shock.
In the spirit of 12 days of Christmas here are our "12 Saves of Christmas" to keep your holiday budget on the friendly side.
1. Plan ahead and set a realistic spending limit
Before diving into holiday shopping, set an overall spending limit that fits comfortably within your budget. Prioritise the essential expenses and allocate a realistic amount for gifts, food, and activities. Planning early helps prevent unexpected expenses from creeping in.
2. Create a gift list (and check it twice!)
Make a list of everyone you’re buying for and set a spending limit per person. Knowing exactly who and what you’re buying for keeps you organised and helps prevent impulse buys or last-minute additions that can break your budget.
3. Shop early to snag the best deals
Avoid last-minute shopping, which often leads to overspending. Shopping early lets you take advantage of deals like Black Friday, Cyber Monday, and other pre-Christmas sales. You’ll have more time to compare prices and find good discounts instead of paying full price under pressure.
4. Look for affordable and thoughtful alternatives
Gifts don’t need to be expensive to be meaningful. Handmade items, home-baked treats, or second-hand finds can be affordable yet thoughtful gifts. Explore unique items at thrift shops or online marketplaces to find something special without blowing your budget.
5. Take advantage of cashback and discount apps
With nearly all consumers looking for the best deals, cashback and discount apps can help you get more value from your purchases. Look for apps or websites that offer cashback, coupon codes, or discounts on popular retailers to stretch your dollars further.
6. Give the gift of time or talent
Consider giving experiences or thoughtful gestures instead of traditional gifts. A homemade meal, an afternoon together, or offering to help with a task can mean just as much as a material gift, while costing a fraction of the price.
7. Share the cost with group giving
Group gifting can help you give a larger present without overspending. Pooling resources with others allows you to contribute to something special, and Secret Santa exchanges with family or friends are another fun way to celebrate without the expense of multiple gifts.
8. Set up a separate Christmas savings account
Consider creating a dedicated Christmas savings account to keep your holiday budget separate from everyday funds. Many banking apps allow you to set up automatic transfers, which makes it easy to build your Christmas budget over time.
9. Shop for holiday groceries in stages
Holiday meals can be costly, especially if you’re buying everything at once. Instead, plan ahead and pick up non-perishables on sale in the weeks leading up to Christmas. This spreads the cost and can help reduce your overall grocery budget.
10. Embrace regifting with purpose
Regifting has become more acceptable and can be a great way to pass on items that won’t go to use. Whether it’s a bottle of wine or a new book, regifting can save money while giving someone a gift they’ll appreciate. Just ensure the recipient will genuinely enjoy it.
11. Focus on experiences, not just things
According to Deloitte, many consumers are opting for affordable experiences that bring people together. A family day at the beach, a picnic, or a cosy movie night can create lasting memories without the need for costly gifts.
12. Reflect on what matters most
Amidst all the holiday spending, take a moment to focus on what truly matters. Spending quality time with loved ones, relaxing, and sharing a meal can make the season memorable without requiring a big budget.
The Christmas season doesn’t have to be a strain on your finances. By planning ahead, prioritising what’s important, and using these practical tips, you can enjoy a festive season full of joy and togetherness, without the financial hangover in January.
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This content contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser (Aspire2 Wealth Advisers, 08 9322 7028), and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Please contact us if you want more information.
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