How to really save money this Christmas shopping season

Last Christmas, Aussies charged a jaw-dropping $28 billion to credit cards, with 1.7 million folks dragging debt into the new year. That’s about an average of $1,634 per person, lingering into those early months and possibly longer.

But listen, Christmas doesn’t need to be a financial hangover. You don’t need those coupon codes or cliché DIY gifts. What you need is a solid plan to enjoy December without wrecking January, all while inching closer to your real financial goals.

the art of not winging it

First off, stop winging it. Consider setting up three distinct accounts: one for bills, a guilt-free spending bucket, and another for savings or investments. On payday, money flows automatically into each bucket. Bills get settled, savings get their due, and what’s left? That’s your free-for-all cash. No manual transfers. No “I’ll catch up next month.”

The aim here isn’t to spend less, it’s to spend wisely and come out better on the other end.

budgeting for december

Estimate your holiday spend—gifts, events, travel, you name it. Set a weekly cap that vibes with your guilt-free spending account. Want to splurge a bit more? Trim down in November to give yourself some leeway. Remember, that credit card bill doesn’t belong to someone else—it’s all yours.

money moves

If you’re handling bills on a credit card, ensure you’re set to clear it every month from your bill account, avoiding those high-interest traps on any balance.

Parking cash in your mortgage offset account until you need it cuts down on mortgage interest without altering your spending. Every dollar saved here is a dollar less owed to the bank. It’s a lifelong habit worth building.

gifting an investment

For the kiddos, gift them an investment with their toys. Consider opening a micro-investing account or investment bond and drop in that first deposit. It’s a terrific financial education tool that keeps on giving.

With long-term sharemarket returns around 9.8%, today’s $100 could turn into $650 in 20 years. Toys fade, but the financial lesson endures.

make the sales work for you

Eyeing a big-ticket item? Snag it now, especially if it’s going on sale soon. This smart move saves you more down the road. Use the holiday sales to your advantage—goodbye splurge, hello savvy shopper.

automatic investment

Start the new year strong. Set up an auto-investment plan, opting for a diversified fund or micro-investment option. Let a weekly transfer roll in from your savings. You don’t need big bucks to start off; momentum is key. Those who automate are ahead even when life gets hectic.

a few more tricks

For anyone sitting on cash waiting for the ‘right time,’ know this: the perfect time is only clear in hindsight. Too many miss out by waiting, while markets, long-term, keep rising. Don’t miss the boat—get onboard now.

property moves

Thinking of jumping on the property ladder? Set a date in January to check your borrowing power or snag pre-approval. New first home buyer schemes are helping Aussies get in with just a 5% deposit, no mortgage insurance required. That’s a $500,000 property secured for only $25,000.

If you’re already a homeowner, plan a refinance review for January. Bank those savings into your investment account and let your system snag it before you spend it.

protect your january

January’s no time for regrets. Those who spend first and plan later end up in trouble. Pre-load monthly bills, assign them a slice from your bills account, and cap your spending. Capture that surplus, and December won’t explode your new year.

wise money choices

Making wise money choices isn’t about ditching Christmas. It means saying yes to fun now and financial rewards later. If you nail this, a system of savings buckets, smart offsets, and automated investing will pay dividends.

podcast wisdom

Ben Nash, a financial adviser and founder of Pivot Wealth, shares these tips. His book, Virgin Millionaire, is the step-by-step guide to your first million and more. For more insights, check out Ben’s [podcast](https://pivotwealth.com.au/podcast) or book a session with Pivot Wealth here.

disclaimer

The information herein is general and doesn’t consider your individual objectives, financial situation or needs. Always consider if the information suits your circumstancesandseek professional advice where necessary.

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