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Six Ways To Financially Prepare For Christmas

Updated: Mar 31, 2023




People being financially prepare for christmas

It is supposed to be a really special time of year. However, for many, Christmas can be fraught with anxiety and stress as costs rack up, and they wonder how to finance Christmas. So, in the spirit of Santa’s Helpers, our team of wealth advisors has created this list to help you financially prepare for Christmas. We hope this goes a long way in you enjoying the festive period rather than feeling weighed down by it!


1- Christmas on a budget plan

Of course, we had to start with this! We might sound like a broken record, but budgeting really is the foundation of a solid wealth creation strategy. Daily habits combine to create life pathways. In other words, successfully planning for December can give you the tools and awareness to effectively plan your cash flow and budgeting more broadly in coming months.


Consider all the areas you might need to fund that are over and above monthly expenses. For example - gifts, meals, parties, decorations, hair and make-up. Anything and everything you know you want to purchase, write it down and allocate a cost estimate. This should give you a very black-and-white proactive understanding of the Cost of Christmas.


Make sure you have your ongoing monthly expenses with you when you do this. Just because it’s the silly season doesn’t mean Santa will stop other bills from coming in. Look at the festive costs in context to what you already have to pay. Is your budget realistic? Consider creating tiers of what is essential, what would be ideal and what is nice to have but not a deal-breaker. Of the essential items - can you think of ways in which you might be able to cut costs?


We might have a few from the following ideas…


2- Look out for early sales

Black Friday and Cyber Monday are approaching. Perhaps set up some Google shopping alerts so you can be notified of any particular deals. Often we can disregard supermarket flyers as junk mail. Be alert when they come through the mailbox and see if there is anything on offer that might save you money. Sign up for emails and avail of join-up discounts.


3- DIY Christmas gifts

Some of the best, most useful, thoughtful gifts are hand-made. If you have kids, what about organising a half-day baking and decorating session or craft shop? The whole family can muck in and create homemade gifts rather than going out and buying more, more, more. It takes time and effort, sure, but it ultimately costs way less! In many instances, they can be a lot more enviro-friendly, too. Some recent DIY gifts we’ve either heard about, received or given ourselves include:

  • Bee bombs (selection of garden seeds to spread and attract bees).

  • Family calendars (really good for loved ones who live far away).

  • Scented candles with homemade swing tags.

  • Photo collages.

  • Framed kids’ artwork.

  • Festive biscuit mix or brandy butter (yes, please!).

  • Chocolate (it had to be on the list!).

4- Does everyone need a gift?

Now, this one might seem controversial, but do you have to get a gift for absolutely everyone in your life? We know several families that only gift to the children - all adults agree that this alone costs enough, and they don’t need anything (other than, perhaps, some of that brandy butter…). If gift-giving is very important to you, why not consider a Kris Kringle? This way, you’re all still giving, but just perhaps not as much.


5- Don’t be afraid to ask guests to BYO

Home entertaining, even if it’s a BBQ or picnic in the park, can cost a lot if you’re the host. Don’t hesitate to ask guests to BYO alcohol or, even better, BYO a platter to share as well. A budget Christmas party is not embarrassing and gives people an opportunity to feel valued by contributing.


6- Start budgeting now - for next year!

We started this article by suggesting ways in which to make this Christmas less stressful. You probably weren’t expecting us to talk about next year already! However, now really is the best time to start planning for this time next year. Why not allocate a monthly festive budget? Set aside X amount of your pay cheque to a festive account that you won’t touch until closer to the time. It doesn’t have to be a significant amount, but anything you set aside should help take the edge off this time next year.


Contact a wealth management advisor today

Don’t make the mistake of thinking financial planning is only for the wealthy. Read about our client’s financial story and how we helped her retire early despite a modest income and mortgage. Then, why not meet with the best financial advisors in the business? We can arrange a no-cost, no-obligation catch-up to understand your financial situation and goals. Your financial situation and where you are in life do not matter. We are confident that with the best financial advice in Melbourne, we can make a big difference to your financial well-being.












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