Australian Financial Solutions

Tackle Christmas Head-on with Money Tips from AFS

December 1, 2011

It’s coming up to Christmas, and money can be tight. Budgets are thrown out the window, and it’s all too easy to spend more money in one month on gifts, food and decorations than you will in the next few months. Maybe you’ve been putting money away, maybe you’re just coming to terms with the amount you’ll need, or maybe you’ve barely even begun to think about it.

We’ve come up with a few tips to help you during the holiday period.

Budgeting is key

We do mention budgeting quite a bit, as it is the most important part of handling your finances. It’s not too late now to budget out what you are going to spend on each aspect of Christmas – how much you will spend on presents, food, alcohol and so on. Put money away in a separate account, or do your Christmas shopping before the rush – when prices are often raised. Use budget tools like a planner to figure out how much you have, and how much you need. If you are running low, why not do away with that extra coffee, or don’t eat out this week? Every little bit helps!

Organise plans early

Are you having Christmas lunch at your house? Do you have to travel around on Christmas day? Organise everything early to make sure you don’t end up overspending at the last minute. If you are having Christmas at your place, make sure to take advantage of early sales on decorations and food – prices will only hike up as it gets closer to the end of December. Get creative and get the kids to make some decorations, or ask everyone to bring a plate for Christmas lunch. Budget out how much you will need for each aspect of Christmas – it may seem like you won’t spend too much, but budget it out and see what you’ll really end up spending.

Manage your debt now

If you know that you won’t be able to afford the Christmas period, or wish that you had a few extra dollars to spare, don’t ignore it – deal with your debt now. There are many different debt solutions and management tools to help you through. If you are struggling with keeping up rent or mortgage payments while buying presents and decorations, it might be best to take a look at loan refinancing or debt agreements. You may even be able to enter into an informal arrangement with your creditors, and agree on a time to repay money when it is more feasible for your financial solution.

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