How to keep your cash in check this Christmas
The holidays are around the corner—a time for cheer, delicious food, and maybe a bit of extravagance. But let's face it: the excitement of gift-giving and festive splurges can easily lead to a financial frenzy.
Whether you're a homeowner, planning to buy a house soon, or just want to avoid starting the New Year in the red, keeping a grip on your holiday budget can save you from a January of regret. Here’s a guide to make sure the spirit of Christmas doesn’t haunt you in the New Year!
1. Set a Realistic Budget—and Stick to It
Before the holiday madness hits, set a cap on spending for everything: gifts, food, travel, and entertainment. There are plenty of budgeting apps that let you set limits for each category, so use them to stay on track. And remember, a budget only works if you stick to it!
2. Steer Clear of ‘Buy Now, Pay Later’
Considering “buy now, pay later” options this holiday season? Before you decide, think about how these commitments might affect your financial goals, especially if you're saving for a home or managing a mortgage. While they can be convenient, these agreements are still a form of credit and could impact your ability to save or manage other debts effectively. Take a moment to weigh the long-term implications before adding them to your spending toolkit.
3. Choose Moments Over Money
The best holiday memories aren’t from pricey gifts—they’re from time spent together. Instead of splurging on luxury items, plan a fish ‘n’ chip picnic by the lake, host a laid-back BBQ, or explore the beautiful outdoors with friends and family. Quality time beats high prices every time.
4. Build a Christmas Cushion
Set aside a little "Christmas cushion" for those inevitable last-minute extras: the random gift exchange, the festive treats you can’t resist, or that one party with the ugly sweater theme. Planning ahead for these costs helps keep them off your credit card—and if you don’t spend it all, well, that’s extra cash in your pocket!
5. DIY Like a Pro
For a personal, wallet-friendly touch, go DIY with your gifts. Homemade hampers, baked goods, or personalised vouchers (think babysitting or a home-cooked meal) save money and are way more meaningful. Plus, a bit of creativity can turn even simple gestures into memorable presents.
6. Think Ahead to New Year Goals
If you’re already a homeowner, set a mini-goal for mortgage payments or a home project in the New Year. If you’re aiming to buy a home soon, start thinking about the financial shape you want to be in come January. A clear goal can help you avoid holiday overspending.
And remember, if you’re feeling lost about your financial goals, our Queenstown-based mortgage advisers are just a call away. We’re here to make sure the New Year starts with financial confidence, not holiday debt.