25 November 2007

Christmas budgeting tips

By Liz Vella, Keyway Financial Coaching Program 

 

Step 1 – Establish your budget

This is quite often the last thing on people’s mind when they begin their Christmas shopping, but it is actually the most important.

When establishing your budget, include bills and other non-gift costs such as food, petrol and day trips.

Step 2 – Determine who you need to buy gifts for

Adults often prefer to buy only for the kids – this is perfectly acceptable especially where large extended families are involved.

Perhaps you can buy one ‘super’ gift for brothers and sisters instead of individual gifts. Of course, the gift will need to suit the ages and sexes of the children.

Don’t get trapped into thinking children need to open a pile of presents in an unwrapping frenzy – they are less likely to appreciate or even remember each one.

Step 3 – Write a list of names

When writing a list, include gift ideas that you have in mind, so you can stay focussed when out shopping. Investigate the feasibility of your gift ideas and be open to devising alternative options if necessary.

Have your list with you at all times – in your wallet or handbag. This helps to avoid impulse buys and double-ups and reminds you of your allocated budget, while making the most of the limited time people have in this busy period.

Step 4 – Get creative

You don’t have to buy the latest and greatest gadgets and toys on the market. You’ll be amazed at what you can make yourself.

For example, you can download photo calendar templates for free and print from your own printer. Grandparents would love a calendar featuring their grandkids!

You can even simply enlarge your favourite photos of your children, pets or even great times with your friends and frame them for less than $20.

Step 5 – Research

Just because something is on sale doesn’t mean it is cheap. Shop around for the best deal – this includes online shopping. Visit popular websites such as Amazon, Wishlist, Ebay as well as discount sites such as oo.com.au and bargainshopper.com.au.

Remember, this is the time of year when your junk mail isn’t junk! 

Step 5 – Be prepared

Early preparation enables you to take advantage of lay-by, but always check for cancellation fees and lay-by charges.

Consider opening a Christmas Club account if you have trouble keeping your hands off your Christmas nest egg throughout the year.

Last minute shopping encourages inappropriate purchases, impulse buying and limits your ability to find a bargain.

Buy gifts throughout the year as this helps to spread the cost over a longer period, thus avoiding big credit card debt in January.

Step 6 – Pay cash

Pay cash and ask for a discount. You’ll be surprised to know that even some big department stores may consider a discount for cash for certain purchases. Paying cash also means you only spend what you can afford, again, avoiding the big credit card debt.

Step 7 – Secret Santa

Ask your friends and family to get involved in a Secret Santa instead of buying gifts for everyone. Make sure you all agree on a set maximum amount beforehand.

Step 8 – Send cards or make a surprise phone call instead of gifts

If you live interstate or overseas, you are not necessarily expected to ship a cargo of gifts to friends and family. It is acceptable to send seasons greetings instead – a phone call is often most appreciated.

Step 9 – Avoid a cooking blow-out

If you are hosting Christmas lunch or dinner, you can ask guests to bring a dish. This can include dessert, salads, hams or other side dishes. You can prepare a list of dishes and guests can nominate their preference or even contribute ideas for the list.

It is also perfectly acceptable to make it BYO and you can buy soft drink cans in bulk for the kids to grab and go.

Step 10 - Enjoy

Christmas is a wonderful time of the year – it’s a great time to spend with friends and family.