This week on Money and Investing, Mitch Olarenshaw and I discuss holiday spending, saving, and budgeting. We share practical tips to enjoy the festive season while keeping your finances in check.
1. Set a budget
Plan your expenses carefully to avoid overspending. Divide your budget into categories like travel, food, entertainment, and miscellaneous costs, and stick to it.
The holiday season can bring pressure to overspend due to social media or peer expectations. Focus on thoughtful, affordable gifts and activities. Second-hand or creatively sourced items can be cost-effective alternatives.
3. Watch out for common traps
Overspending on credit cards or buy-now-pay-later schemes can create financial stress in the New Year. Use cash or pre-planned budgets to maintain control over your spending.
Factor in expenses like wrapping paper, decorations, and travel. Including these in your budget helps ensure you don’t exceed your limits.
5. Emphasise non-material values
Reflect on the season’s meaning by donating unused items or giving back to the community. This can also help teach kids important financial and social values.
6. Prepare for the New Year
Start the year without the burden of holiday debt. Plan ahead for major purchases or travel by booking early and taking advantage of deals or rewards programs.
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