Ahead of the festive season, money is definitely on people’s minds.
Finder.com.au has found that total spending over the festive season is projected to hit $25 billion, with Aussies spending $1,325 each on average! Women are projected to spend $1,406, more than men who on average who will shell out $1241 each.
Research by Money Smart found that 40 per cent of the total Christmas spend in 2017 was on credit cards. Canstar said that accounts to an average individual splurge of $3,342 on credit.
With that in mind, we spoke to the CEO of Castle Debt Solutions, Carlo Napolitano, to find out some helpful tips for managing your budgets over the Christmas period.
Compare Your Income To Your Expenses
It’s always important to budget by looking at your income compared to your expenditure. By doing this you can see what you have to cover on your weekly or monthly expenses and what you have leftover for all of that Christmas shopping and extra food you’ll be buying during the festive season.
Only spend what you can afford
It may sound simple, but many people fall into the trap of relying too heavily on credit cards over Christmas. If you’re going to use a credit card to cover the additional December costs, make sure you’ve worked out how you will pay it off in January before those nasty interest fees hit!
Make A List
Make a list for xmas presents with suggestions for spend for each person. This allows you to see in advance what you’ll be buying this Christmas without going overboard.
Go For Debit
Use Debit Cards instead of Credit Cards! So many Castle Debt Solutions clients come to us with masses of credit card debt and so often this is a result of large interest rates and fees. Debit Cards stop you spending money you don’t have!
Be practical about presents
Look at gift options people will need and enjoy that aren’t going to blow the bank. Sometimes a gift from the heart doesn’t need to cost as much. Many families often opt for making gifts instead of purchasing them.
Sell Sell Sell!
Sell items you don’t use, advertise on Gumtree or social media. This will give you more money to spend and clean out your house for when you have all the family in town!
Do you have any festive budget tips? Share them in the comments below.