Notwithstanding the cost of living pressures dominating news headlines, Australians are expected to spend close to $64 billion this year in the lead up to Christmas on gifts, food, holidays, decorations and more. Clearly, you don’t need to be an economist to come to the conclusion that this type of spending is absolutely wild. Here are some actionable steps you can take to keep on top of your money this summer, and start 2024 on a strong financial footing.
“Champions keep playing until they get it right.” billie jean king
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Review Your Finances and Make a Budget
Checking in with your goals, savings and general financial well-being will help you focus on what is really important to you this holiday season. Are you meeting your overarching financial goals, whether that involves saving for a house, building your emergency fund, paying off debt, nurturing your investments, or furthering your education so you can embark on your dream career?
By having a clear idea of where you are financially right now, you can create a detailed, realistic plan for how much you can spend. Practice financial self-care, remembering that there is a close link between money and overall mental wellbeing. Work out your priorities and set a budget for the holiday season that aligns with your goals and values, so you can feel in control of your money and avoid financial stress.
Get a Head Start on Your Holiday Planning
Planning ahead for time away makes good financial sense. Include trips as part of a specific savings goal you can be working towards during the year for more efficient budgeting and greater accountability.
You can keep costs under control by using any credit card or frequent flyer points you have accrued during the year to help offset the costs of any holiday related flights, accommodation or car-hire you have planned.
Consider where you’d like to go well in advance, and don’t forget to think outside the box. Could you arrange a house-swap with friends interstate? Perhaps they can enjoy the delights of your inner-city digs, while you settle in for some quality time at their beachside abode?
Timing your holiday is also important. If you are not restricted by the schedules of school-aged children, it can be highly satisfying (not to mention budget-friendly) to sail off on an adventure towards the tail end of summer, just as the rest of the office crowd are making their way back from leave.
Celebrations: Be the Hostess with the Mostest
If you are hosting Christmas this year, plan your budget and menu in advance, remembering that less is definitely more at this time of the year. Let a good ham, solid seafood platter and decadent pavlova do the heavy lifting for a memorable, crowd-pleasing event. You can also encourage guests to bring their signature salad, cake or a bottle or bubbly to share, to reduce the financial and logistical pressure on you.
When it comes to setting the scene for a festive day, you can reuse and repurpose what you already have. You could employ the services of a large potted plant – festively laden for the occasion – as a living, breathing Christmas tree. Or unleash your creativity with some home-made decorations and gift-wrapping. If you have young people around, get them involved too in the making of bespoke works of art.
Leading up to the big day, remember that not every holiday social occasion needs to involve attending expensive events. Why not host a book, clothes or biscuit exchange instead of paying for an expensive outing? Or perhaps a flower arranging session or crafternoon might be your cup to tea? Cute and cheerful, just the way we like it.
While it can be tempting to splash out on an array of pretty dresses as the weather warms up and party invitations roll in, consider whether you can instead update your existing wardrobe with one or two timeless pieces (ideally through aforementioned clothes swap with some fashionista friends) or refresh existing looks with some fun and fabulous new accessories?
Get Smart With Giving Gifts
Remember that the best presents show thought and love, and do not require you to take on a mountain of debt. Set a spending limit and plan gifts ahead of time, so you can shop smart and take advantage of the big sales leading up to Christmas.
There is power in how we spend our money. Consider whether you can support smaller, local businesses for unique holiday purchases that will not only delight the recipient but have a positive effect on a real person working to realise their entrepreneurial dreams.
When it comes to choosing gifts, embracing homemade and second-hand goods can also be a great option. Not only are they more sustainable, they also help reduce waste, support your local community, and offer a more bespoke option that can reflect your personal style and flair.
Perhaps this year you can bust out the sewing machine or knitting needles to create some gorgeous presents, or propagate some plants for gifting in personalised terracotta pots. Is there a book that you found particularly thought provoking or meaningful this year? Pass it on to a friend who you know will love it, with your personal recommendation, and a batch of your tried and true chocolate truffles.
You can also give the gift of your time: memories are the best gift of all and don’t lead to unwanted clutter. Why not lead a tour of your local breweries, organise a city scavenger hunt or take time to enjoy nature’s gifts? Strap on your hiking boots, pack a picnic and head off to a national park for a spot of forest bathing with family and friends.
Finally, consider the gift of education, whether it is a skill that you can share or a book, course or subscription that will delight, motivate or inspire a loved one.
Invest in Yourself and Start the New Year Strong
Focus on what really matters during the holiday season: spending quality time with loved ones and enjoying a well-earned break to reset and recharge, so you put your best foot forward for 2024.
Don’t forget to use this time to invest in yourself: building your financial literacy through education is an essential skill to feel calm and confident about money, build wealth and build financial security. Set aside time to review where you are now, how this aligns with your priorities and plans, and make any necessary adjustments to keep yourself on track for financial independence and success in the new year.
Some practical ideas you can consider are tuning in to one of the many excellent podcasts on money and finance, starting a group chat with like-minded women in your network to exchanging ideas on achieving money goals and lessons learned, or starting a financial book club with friends.
Need ideas for what to read next? Check out our guide on money and investing books every woman should read.
