Start Budgeting for Christmas Now to Avoid Last-Minute Stress

As Christmas approaches in just over ten weeks, financial planning becomes essential to avoid last-minute spending stress. During an appearance on Lunchtime Live, budgeting expert Kel Galavan, known as ‘Mrs Money Smart’, shared practical tips for managing holiday expenses effectively.

Galavan emphasizes the importance of conducting a personal “Christmas audit.” She suggests setting aside one hour to assess holiday spending needs. “Grab a coffee, a pen, and a notepad, and sit down for about 60 minutes to list out all the things you think you need to buy,” she said. This includes essentials like wrapping paper, decorations, and gifts.

Evaluating the necessity of these items is crucial. Galavan pointed out that many people often overlook items they already possess. “You probably do not need a new Christmas jumper if you already have several, or if you still have stocking fillers from last year,” she advised.

Moreover, Galavan highlighted the tendency to purchase extravagant food items during the festive season. “Most of us probably do not need, or won’t fully enjoy, a vacuum-packed lobster. Such items often go to waste,” she noted, encouraging consumers to think practically about their holiday shopping lists.

For those concerned about the rising costs of gifts, Galavan recommends considering alternative gifting methods. “Think about experiences or gift-free gatherings instead of buying gifts for everyone,” she suggested. For instance, she proposes that siblings might instead opt for a shared lunch, which is typically less expensive and offers a chance for quality time together.

In addition to holiday-specific planning, Galavan advises individuals to evaluate and potentially cut back on unnecessary subscriptions. This strategy can free up funds that can be redirected towards Christmas expenses.

With careful planning and a mindful approach to spending, individuals can navigate the holiday season without succumbing to financial pressures. As the countdown to Christmas begins, now is the time to start budgeting to ensure a stress-free celebration.