During the holiday season, it’s tempting to throw financial caution to the wind and overindulge in your spending. After all, it’s not an everyday event, you want to experience the holiday fun, and everyone else is doing it!
At this moment, the pressure to overspend can take hold.
The desire to buy gifts for everyone, travel to exotic destinations and attend every holiday party you’ve been invited to can be overwhelming. But can you afford it?
You don’t have to give in to overspending if your financial situation doesn’t allow it. Let’s look at some simple tips and tricks from our team of financial advisers, so you can avoid falling into that trap.
But first, here’s what you’ll enjoy when you overcome making financial mistakes during the holiday seasons:
So how do you unlock these benefits?
Once you locate the cause of your financial pressure, you’ll know what to eliminate or modify to enjoy your holiday season without burdens.
High expectations are the main cause of financial pressure during holiday seasons, as psychotherapist Fe Robinson explains:
“People at this time of the year feel pressure. The pressure to please can leave you responding to a whole series of shoulds, oughts and musts that may feel pretty miserable.”
– Fe Robinson
What are these “shoulds”, “oughts” and “musts“ she’s talking about? They manifest in several ways:
When it comes to buying gifts, no matter how tempted you are by the “only 11 left in stock” messages, don’t give in. It’s just a clever trick used by marketers to create a sense of urgency.
If you have people over during the holiday season, it can be tempting to try and be the best host by preparing elegant meals and going all out for your guests. But it shouldn’t cost your entire paycheck.
Find affordable entertainment activities and places to go in your area. Websites like Tripadvisor can help you locate average-priced venues with five-star ratings.
Also, browse the internet for simple yet presentable meals to prepare for your guests when on a budget, such as these:
Look for other ways to cut costs, like the 40.3% of Australians who’ve said they will spend less this Christmas by lowering their energy bills.
Percentage of Australians | How they plan to cut back on energy bills |
3% | Will hang up few or no Christmas lights |
7% | Will not use an extra fridge or freezer during Christmas |
8% | Will use their air conditioner only when necessary |
8% | Will completely switch off appliances at the wall sockets |
10% | Will rely on solar panels as a source of household energy |
Once you locate the cause of your financial pressures and fix them, you’ll find that this holiday season won’t be such a burden.
A budget helps you handle financial pressure that results from buying what you don’t need. It’s your friend during the holiday season, helping you note what you need to buy, including the estimated cost.
Your budget can include travel, food, clothes, decorations and entertainment, but gifts will be a major component.
In fact, gifts are the one issue that requires extensive budgeting for the majority of people during the holiday season.
In 2021, Finder estimated that gifts were at the top of the Christmas list, with an estimated $374 spent per person.
It’s helpful first to find out how much money you have, then make a list of all the gifts you wish to buy and their estimated cost.
This simple act of budgeting will reduce extra shopping expenses because you’ll have a rough idea of how much you have to spend. A gift budget planner template will help you plan accordingly and stick to your budget.
When budgeting, find ways of saving more money elsewhere during the gift-giving season. Some examples include:
When you do finally start shopping, stick to your budget. Head straight to the items on your list because if you linger for too long, you’ll end up with extra goodies in your cart.
Budgeting apps are another way to keep track of your spending habits and transactions. Some popular ones in Australia include Frollo and MoneyBrilliant.
If you don’t budget, that extra $5 spent here and another $5 spent there soon add up to a substantial amount of money. But, with a budget in place, saving is easier.
Wouldn’t it be great to have someone take on the burden of financial planning during the holiday season? Anthony Poole, Principal Financial Adviser from Poole Advisory, can ease the burden.
Financial advisers work with all kinds of clients and will work closely with you to win the war against overspending during the holiday season.
This is how a financial adviser can help you manage your holiday spending.
If you’ve tried to plan your budget during the holiday season but just can’t figure out how to allocate money, a financial planner will help you put your finances in order.
Poole Advisory believes that knowledge is power. We will help you handle all the financial pressures you encounter during the holiday season.
You’ll understand cash flow management techniques and processes after the Poole Advisory team has analysed your budget expenditure to understand your spending habits.
You’ll also receive a thorough analysis of your budget plan to see where you can improve to help you save money during the holiday season.
“Anthony, with his planning skills, has guided us on a journey that has been beneficial for our future financial planning.”
– Michael M
Get in touch with Poole Advisory today to learn more about how to conquer financial pressure during the holiday season.
Holidays don’t come with financial pressure. The pressure results from spending more money than you can afford on gifts, travel, shopping for clothes and indulging in entertainment, which leaves some people in debt.
You can avoid overspending by identifying where you overspend (perhaps in buying gifts or travelling). Then create a budget that limits which items or activities you can indulge in and the maximum amount you can spend on each one.
Yes. A financial adviser will help you identify where you overspend during the holiday season. They’ll help you create a budget that will limit how much you spend and show you how to stick to the budget.
This information contains general advice only, that is, advice which does not take into account your needs, objectives, or financial situation. You need to consider the appropriateness of that general advice in light of your personal circumstances before acting on the advice. You should obtain and consider the Product Disclosure Statement for any product discussed before making a decision to acquire that product. You should obtain financial or credit advice that addresses your specific needs and situation before making investment or borrowing decisions. Taxation information is based on our interpretation of the relevant laws as at 1 July 2018. While every care has been taken in the preparation of this information, Prosperitas Partners Pty Ltd does not guarantee the accuracy or completeness of the information. The case studies are hypothetical, for illustration purposes only and are not based on actual returns
Poole Advisory Pty Ltd ABN 15 642 040 604 is a Corporate Authorised Representative (No. 001282603) of Prosperitas Partners Pty Ltd ABN 30 662 654 453 AFSL 544 917
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