Six tips on how to budget for Christmas

With the silly season fast approaching, it’s time to start thinking about Christmas spends.

The allure of shopping centre baubles may send you into a spending frenzy but maxing your credit card at Christmas can saddle you with New Year debt that is hard to pay off.

There are sacks full of things you can do now to avoid a financial hangover in January.

Here’s the Debtfix six quick and easy tips to help you enjoy Christmas without becoming a Grinch.

Tip 01 - Have a pre-Christmas clear out

If you have a really good search, you will be astounded about how much potential Christmas cash is stored in your toy box, garage and wardrobe.

If you have toys, books and clothes gathering dust, then now is the perfect time to flog them off. 

After all, one person’s trash is another person’s treasure. 

If you have a lot of items, you could have a garage sale, attend a car boot sale or get a stall at a pre-loved market. 

The online auction site Trademe is a great way to sell, particularly if it is an individual item. However, be aware, Trademe charges a fee of (7.9 per cent) per sale.

Selling on your local Facebook buy, sell and exchange group is another great option and unlike Trademe, the sales are often instant and there are no fees, so you will keep 100 per cent of the profit. Neighbourly also has a local sale option as well, so that is also worth checking out.

Tip 02 - Make a Christmas list and budget

For gifts, make a list of who you need to buy for, what you want to get them and how much you are going to spend on them.

If times are tough, consider suggesting to family about just buying for the children this year.

For entertainment, plan how many people you will be catering for, what food and drink you will need and any other entertainment costs.

Share the load, if possible, ask each family member to bring a plate.

 If you plan to travel this Christmas, factor in any travel, accommodation and fuel costs.

Look at making small changes in the run up to Christmas and even cutting back on one daily coffee purchase from now until Christmas can save more than $200.

Tip 03 - Start buying now and spread the cost

Items on sale now may not be on offer nearer to Christmas. 

Picking up festive treats early helps lighten the load and spread the cost come December. 

Layby may be a better option for larger gifts.  If you layby now, you have a few months to pay off the item and it is interest free but beware of set up fees and charges for late payments.

Consider creating a Christmas cupboard at home and slowly add to it as and when suitable food items come on offer. 

Frozen foods can also be purchased a few months in advance, if you see great offers, snap them up and store them.

Check the junk mail flyers for your supermarket’s weekly offers, view their social media pages for exclusive online deals or sign up to their newsletters for the latest information.

Tip 04 - Homemade gifts

There is an old saying, it’s not the gift but the thought that counts, and there is nothing more thoughtful than a homemade gift. 

You could consider baking for loved ones or creating a festive piece of art.

Collect your jam jars, ribbon, cardboard and string and who knows what you might come up with.

Websites such as Pinterest are packed with pages of fantastic homemade gift ideas.

Although it’s always nice to receive a Christmas card, you need to ask is it a necessary cost, when the majority end up in the bin as soon as the holidays are over. 

Consider creating a personal Christmas video message instead to email to friends and family as a great alternative.

If you have kids, ask them to draw or paint a picture and send them with a message. 

Preschool kids, who bring home lots of drawings provide an excellent source of gift wrapping for small gifts.

Tip 05 - Savvy shopping

Everyone loves a good bargain. 

Take advantage of sales throughout the year and find a good storage place to hide them until Christmas.

If used correctly, online shopping can save you money in more ways than one.

Looking at price comparison sites helps you get the best price for your purchase and often big players such as Amazon or Mighty Ape offer the cheapest prices around, just make sure you check shipping costs.  

Another advantage of online shopping is that it can prevent impulse buying. 

If you do your Christmas food shop online and have it delivered or pick up in store, there will be less temptation to buy more in store.

Have a look at the online sites GrabOne, GroupOn and TreatMe for discounted gifts and experiences.

Have a rummage through the op shops, second-hand book shops and pre-loved markets. It’s surprising how many wonderful gifts can be found, and it’s environmentally friendly to boot.

Tip 06 - Be careful with credit

If you do need to use your credit card this Christmas, use it wisely and only as a last resort. 

Make sure you know what your repayments are going to be before you make the purchase.

Before you sign up to any buy now pay later deals, it is important you understand what the terms and conditions are as any offer that seems too good to be true probably is.

If you would like more information, guidance or to discuss your personal financial situation, call Debtfix on 0800 332 8101 or email helpline@debtfix.co.nz.