9 ways to avoid a budget blowout this festive season

The summer holidays, plus a couple of weeks off work, multiplied by Christmas festivities all adds up to a pretty expensive time of year. So we’ve collated nine sure-fire ways to keep your budget on track during the bustling break.

Summer holidays are a time to relax, spend some time with those closest to you and reflect on the year that’s about to end. But between school holidays, Christmas gifts, summer trips, and increased social commitments – it’s also a time of increased financial pressure. To help you navigate this budgetary minefield, we consulted with Mark McNeany, Financial Planner at Vertex Group, to collect nine tips to keep you on-target over the summer break.

It’s an obvious point, but one worth reiterating to yourself every year: who do you really need to buy for? If there are people you’ve lost touch with over the last year or kids who are now earning money of their own, now could be the time to cross them off your list politely. Similarly, if family and friends repeatedly claim there’s nothing they particularly need, why not start a group ‘fun fund’? The dollars will soon stack up if you add to it on birthdays and special occasions, meaning you’ll have a nice lump sum to spend on something special in a few years.

If you’re part of a big family, it might be worth looking at the way you handle gift-giving. “In my family, we do a Kris Kringle, that means that you spend a bit more but only on one person. It makes the whole budgeting system easier, because you’re not trying to keep a total of how much you’ve spent on presents for eight different people,” Mark says.

There are also strategies you can employ to get the best price on gifts. Price match in-store with online retailers, be patient and wait for sales, or look for bulk discounts and two-for-one offers. Forward planning can pay dividends as well. “When it comes to presents for the kids from Santa – start early and buy through the year,” Mark suggests. “Pre-buying means that come Christmas time half the shopping is done and paid for.”

Supermarket loyalty cards, certain credit cards, frequent flyer programs ¬– they can all earn you points on the dollars you spend – and you don’t necessarily need to exchange them for groceries or flights. Many rewards schemes have their own stores that are chock full of great Christmas gift ideas. So check in on your balance – you might be surprised how much your day-to-day spending could alleviate your festive expenses.

If you’re not a member of any reward programs, don’t despair. Around the holidays is a great time to join because, as Mark notes, “often it will result in a gift voucher that you can use to put towards a purchase.”

Gifting an experience over an object is becoming increasingly common. As well as giving your nearest and dearest the opportunity to make some amazing memories, it can free up your finances a little too. Got a couple on your gift list? A weekend away can usually be paid for in instalments or on the day of arrival. Close friends? Book in a dinner or group activity to look forward to once the chaos of Christmas has subsided. Spreading events out over time means you can spread your spending out, too.

Be smart with your December pay cheque, especially if it arrives earlier than anticipated. Transferring living expenses – like rent or mortgage repayments and bills – into a separate account is an excellent way to resist the temptation to dip into them, so you don’t leave yourself short for January. And don’t forget to make sure your festive budget is actually achievable based on the funds you have remaining.

The summer break is the perfect time to declutter and make a little spending money in the process. Take a look around the house for objects that are sitting dormant, waiting for a new life (and a new owner). Don’t underestimate the value of items that you consider low-value. “Don’t throw things out, because you’ve probably got a small fortune sitting there,” says Mark. “Put stuff that’s in good knick up on eBay, there’s always someone who wants your junk.”

Take some time to note down all of the events on your Christmas agenda. Then, put an estimated cost against each one, depending on what you’ll need to buy. It’ll give you visibility of what you’ll be laying out, and highlight where you could make savings by buying things in bulk (like wine and soft drink). Once you’ve added it all up, factor in an extra 10 per cent for those unexpected plans that always crop up.

Often, hosting dinner is an expensive exercise – but it doesn’t have to be. Potluck feasts are great because everyone’s responsible for supplying a dish and drink, which usually works out much cheaper than the set menus restaurants tend to insist upon for larger groups. Plus, the extra effort it takes to coordinate everything pays off in all the leftovers that are likely to make their way into your fridge (and wine rack).

Accommodation prices climb across the board during the summer holidays as demand swells, so it’s your best interest to plan ahead. “If you leave the booking late you tend to either miss out or the rates can be quite expensive,” Mark says. So if you’ve missed out this summer, it might be prudent to look to the following one. “If you’re booking 12 months ahead, you’ll get the best locations, the best properties, and the best rates.” If you feel like you need to get away sooner rather than later, consider taking some time off in February when the summer rush tends to die down and prices start to decline again.

Staff writers come from a range of backgrounds including health, wellbeing, music, tech, culture and the arts. They spend their time researching the latest data and trends in the health market to deliver up-to-date information, helping everyday Australians live healthier lives. This is general information only and is not intended as medical, health, nutritional or other advice. You should obtain professional advice from a medical or health practitioner in relation to your own personal circumstances. The information in this article is general information only and is not intended as medical, health, nutritional or other advice. You should obtain professional advice from a medical or health practitioner in relation to your own personal circumstances.

Disclaimer:
The information in this article is general information only and is not intended as financial, medical, health, nutritional, tax or other advice. It does not take into account any individual’s personal situation or needs. You should consider obtaining professional advice from a financial adviser and/or tax specialist, or medical or health practitioner, in relation to your own circumstances and before acting on this information.