Planning for Christmas

Planning ahead is the key to a good Christmas, especially when you're on a tight budget. Even if you haven't managed to save any money throughout the year, careful planning for your Christmas shopping can help prevent costs from spiralling out of control. Here are some things to consider: 

‘What can I go without to free up some money for Christmas?’

Review your budget to see how much you can spend on extra Christmas items, and decide who you want to spend it on.

1. Review and adjust your budget

Find money by cutting out unnecessary spending.

• Remember to continue paying your usual commitments, such as rent, power, food, and other necessities.

• Forgo expenses such as treats, outings, cafes/bakeries, and takeaways. By cutting back on these costs, you can save money to contribute to your Christmas budget.

• Calculate how much you can afford between now and Christmas to make the purchases you want. For example, if you can afford $50 a week and there are 8 weeks until Christmas, that's $50 x 8 = $400. If there are 10 people on your list, that's $40 per person.

2. Start Thinking About Gift Ideas Early

Begin making a list of people you want to buy gifts for and prioritise them. For example, you might decide to spend more on children and less on adults. 

Distribute your calculated sub-budget among everyone on your list. If you find that the funds are spread too thin, consider getting creative with your choices. 

Once you know how much money you have and how far it needs to stretch, you can begin thinking about potential gifts. Having specific gift ideas in mind can help you avoid impulse purchases.

The sooner you determine what you want to buy and for whom, the sooner you can start searching for the best deals. Take advantage of sales and explore different options, but try to limit unnecessary browsing to avoid overspending.

3. Consider DIY Options

Be creative with gift giving - think of personalised gifts that you can make or do for your loved one to save money and help stretch your budget.

• Homemade gifts can be a winner. Whether you make just a few gifts or go all out with a fully homemade Christmas, don’t put it off—get started now. This option takes T I M E, don't leave it until the last minute. Delays can cost you more than simply buying gifts from a store.

• Browse local Op Shops to find treasures to upcycle and gift.

• Home-baking and other Christmas treats are always appreciated gifts.

  • Home-made relish and pickles

  • Christmas pastries, biscuits or fruit cake

  • Design a voucher to gift favours, chores, etc.

• Purchase gift cards each payday and take the recipients shopping in the post-Christmas sales to choose their own gift. Remember, spending time with your loved ones is as good (maybe better) than any store-bought gift.

4. Track Your Spending

Keeping a record of what you have spent will help you stick to your budget. As we get closer to Christmas, things can get hectic, so having a well-thought-out budget and Christmas plan will keep you calm and focused. Extra stress is the last thing you need.

Try to avoid shopping during busy times; if you're less stressed, you'll make better spending decisions. Mark items off your list as you purchase them to avoid duplicate gifts.

5. Plan early, get ahead.

Discuss gift buying with family/friends and set maximum limits. You may decide that only children will receive presents or have a Secret Santa, where everyone only buys one present for one family member.

If you are hosting Christmas dinner, ask others to bring a plate or something to drink.  Share the work and cost load.

Resist the temptation to borrow or be lured by tempting credit deals or buy-now-pay-later traps.  Be honest with yourself about repayments, if your budget is already tight you probably can't afford any extra payments. It is important to make sure the family won’t struggle and have to go without during the school holidays when they want extra money for ice cream, movies, or hanging out with friends.

Consider your income during the holiday season, as your holiday pay will need to last during a time of increased spending. Parents are aware that having children at home during the school holidays pushes up the weekly food budget. Additionally, we must keep in mind the back-to-school costs that are coming in January.

A budget makes Christmas shopping more enjoyable, as you'll know exactly how much you can spend on your loved ones. No guessing and no stressing. Create a Christmas budget today and experience the joy of giving without the burden of debt.

Moni Ora takes a two-week break over the Christmas-New Year period, but our free downloadable tools are available to you at any time, so you can start planning at your convenience. 

​At Moni Ora, we help you plan your money to reach your goals.

Our service is always confidential and free of charge.

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