It’s not too late to save for Christmas… next year!
It’s not surprising that many Aussie households feel financial pressure at Christmas time. Statistics shows Australian’s are estimated to spend a whopping $25 billion collectively on Christmas in 2018. This includes money spent on gifts, travel, decorations, food, alcohol and donations.
In NSW the average estimated spend is $1,301 per person. [1]
So how can we take the financial stress out of Christmas but still enjoy a Christmas with all the trimmings?
Here are 3 simple steps to start saving now for Christmas next year:
Step 1: Set a Christmas savings goal
Set a Christmas budget. Knowing how much money you need to put aside to cover Christmas expenses is vital. Have a think about everything you will need for the Christmas period, including gifts, decorations, food and alcohol. Don’t just think about Christmas day, if you have children you may want to factor in school holiday activities and family holidays.
Use a savings calculator like this one to calculate how much you’ll need to save each pay to reach your Christmas savings goal. Saving just $20 per week will add up to over $1,000 in a year’s time. Don’t forget to add this figure to your family budget!
Step 2: Open a separate savings account
Setup a separate bank account exclusively for your Christmas savings. Some banks and credit unions have accounts designed specifically for this purpose. These accounts have special features designed to help you achieve your Christmas savings goals, such as penalties for withdrawing money outside the Christmas period, unlimited free deposits and special interest rates.
Step 3: Setup Automatic Payments
Automatic payments into your Christmas savings account are a great alternative to manually transferring money each pay day. “Set and forget” makes for effortless savings and when Christmas comes around you can be confident the funds you need will be available.
With a little planning it is possible to take the financial stress out of Christmas. Now is a great time to start – and enjoy a hassle free Christmas next year.