With the festive season almost upon us, many are excitedly anticipating how they’ll spend their time over the holidays. In addition to time spent, many also think about what money they will spend. Whether it’s on a much-needed vacation, affording time off work, or placing presents under the tree, the silly season sometimes leads to stressed-out savings accounts.
At CFV Services, we’re here to help you budget in the lead-up to Christmas and provide helpful tips on getting your budget back on board to hit the new year running.
How to spend responsibly over Christmas
If you’ve got to December and are considering what impact Christmas and the new year break will have on your bank account, then you’re not alone. Market research company, Roy Morgan, estimated that Christmas 2021 cost Australians $11 billion on gifts, alone!
As most understand, though, the expenses at this time of year extend past presents. Travel costs, holiday stays, decorations, functions, events, school holiday activities, festive food, and time off work all contribute to the expense of the holiday season.
Here’s how you can keep hold of the financial reigns:
1. List your expenses
Whether in a fancy spreadsheet, a notebook on the dining room table, the whiteboard on the fridge or using our Wealth Portal (for ongoing clients — you can list this within the bank account it will come from as a to-do), list your expected expenses. Starting this process now will mean you have ample time to remember those little costs that cause the Christmas budget to creep up.
2. Set cost limits
Once you know what needs to be covered, set a cost limit for each item. For example, if you have multiple family members to buy for, set a gift limit for each family member — this will help keep the budget within your limits and provide a clearer guide on what type of gifts to buy! You can also have a less active November in terms of spending to ensure you have enough for December — get on the front foot!