Time to read : 3 Minutes
When I joined Compare Club to write about mortgages, savings and all things financial it was a bit of a wake-up call.
I mean, how can I write about all of this without taking it onboard and putting it into practice? After all I can't really ask you to be better with your money if I'm not asking the same of myself.
Mission #4 – spend less on gifts
Last year Aussies aged between 35-49 spent on average $822 each on gifts. With inflation and interest rates biting this year, it should be less this year.
🫰🏻But Roy Morgan just released a report that says we're looking to spend more, in fact Aussies are expected to fork out $63.9bn this Chrissy – or 3% more than last year.
💳 And if you stuck the $822 on a credit card with an average rate of 19%, you'd be paying an extra $156.18 in interest. Ouch!
😣 I am pretty sure that Reserve Bank Chairman Philip Lowe would not be impressed as he looks to get inflation under control.
🦌 Also, it's pretty stressful trying to work out what your second cousin once removed would want in their stocking isn't it?
This is how I feel about Christmas these days...
It's an over-marketed event and if you let it be, an awful and exhausting time.
🎁 I think that gift giving makes both the giver and receiver anxious... there's so much unnecessary pressure.
🌲 I tend to just do gifts to my immediate family (Mum, brother, my brother's partner, my sister, her partner and my new little nephew)
We also set a budget. This year it's $20. AND this gift must be useful. It makes us all compete to see whose is best – don't pretend you wouldn't.
📖 For the rest of my friends, we tend to make time.. we meet up for a nice swim at our favourite beach, a lunch at mine or theirs. If I do give a gift it is always a book these days.
The most important part of Christmas for me, is simply spending time with my family and friends.
Note: It's good to have open conversations with all your friends who might want to get you a gift to say – let's not do that this year, let's just catch up and do something we like instead.
Old me: I used to pay for everything on either my credit card OR with buy now pay later service (BNPL). I would easily spend $1.2K each year.
New me: I stick to my budget. This year that is $20 x 6 or $120, plus 3 x up to $30 (for books for my closest friends). The grand total of $210.
The 10 ways I save, make and pay for Christmas
I save less. I know that sounds counter-intuitive but what I mean by this is that during the month of holidays, instead of saving $800 a fortnight, I put aside half or $400 instead and then reallocate the remaining $400 to gifts, travel and buying food.
Creativity rules. I love making gifts when I can, case in point the paper coiling project. It's fun and makes a great framed gift – thank you Kmart $10 frame.
The cook wins. There really isn't much that is more special than a lovingly cooked meal, box of cookies or gift of fudge-y brownies is there?
If you are going to buy a gift – shop around. I am going to sound like my mum here, but there is always a bargain to be had. A simple five minute search could save you a lot of money.
Secondhand anyone? Gumtree, Facebook Marketplace and even good old council pick up days are wonderful ways to find special items and do them up as gifts.
Give fewer gifts if any. Okay, I am not a Scrooge, I promise, but one year my gift list got so long it felt silly – why was I buying presents for literally everyone I worked with anyway? In the end, I just baked a big box of Christmas cookies, it cost less and still was a meaningful gesture.
Don't go away at Christmas unless you really, really have to. Travelling at this time of year costs a proper fortune. This year I am going to drive up to the Central Coast and have allowed for fuel and a bottle of spirits for my brother and his boyfriend out of my food budget.
KEEP track of everything. I note down everything I spend, and I round up to make it easy, e.g. if I buy bread and it's $3.80, I round it up to $4. It is really easy to let costs get out of hand it you don't hold yourself accountable.
Instead of sending a physical card, send a digital one and make it! Find a photo add some bells, spend some real time writing a proper message and send. FREE.
Last BUT not least, don't forget you. I think sometimes when you have saving goals you forget to treat yourself. This Christmas I have bought myself a special piece from my favourite label to wear during the holidays. I buy only one piece a year from Foundling – and I save for it.
This has been a hectic year, I think it is OKAY for us to not save as much for a couple of weeks...
After all we are still moving forwards.
🎅 Make a list with a budget and stick to it.
🫶 Remember that it is okay to spend money, that's why I save and budget.
🛫 If you need to travel, then book it as early as possible to save pay hoiked prices!
Save less but still save: $210 (out of savings) vs $822 average Aussie spend = $612 ahead.
💰Week #4
Savings: $1200/$25K goal Travel savings $200/$5.2K goal
🎁 Next week... I tackle my streaming costs – and, Houston, we could have a problem!
