How to manage your expenses this Christmas

Published on November 20th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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A third of Australians turn to online shopping for Christmas

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The festive season is finally upon us, which means there is more time to kick back and relax. However, it is also the time in which many Australians find themselves losing track of their spending, leaving them with a holiday debt. Here are five tips to help you better manage your Christmas expensing without busting your budget.

1. Track the way you spend

Keeping track of what comes in and out of your account is one of the important things that you could ever do for yourself this festive season. According to UBanks latest report, 86% of Australians do not know their monthly expenses. This could be an easy way for many Aussies to fall into a debt trap that can soon become out of control. Therefore, tracking your expenses before the holiday mode kicks in is essential.

2. Create a Budget

Make a budget and check it twice before the holiday season picks up. UBank found that 28% of Australians make use of financial management/budgeting tools, while 31% of Aussies said that they are yet to make use of such tools. Budgeting all the things that you need to buy such as food, gifts, travel expenses, entertainment expenses, and more. You can hold this against the current finances that you have available and weed out the things that you do not really need to spend money on. The aim is to have a relaxed festive season that doesn’t leave you with a financial holiday hangover.

3. Pay off existing debt

Spending money to spoil yourself to ease of the stress is something that many people do. However, doing this while you still owe money on various loans and credit cards can be similar to shooting yourself in the foot as your debt will accumulate. You can consider taking out a personal loan to help you consolidate your debt and spread out costs. However, ensure that it is affordable and comes with repayments that are work with your cash flow.

4. Curb shopping online

It’s fast, it’s convenient, but shopping online is one of the ways to easily lose track of your finances and start accumulating debt on your credit card. If done properly, shopping online can help you get access to discounts and sales that can actually have you save. But the best rule of thumb that you can use when shopping online is that if you have not budgeted for it then you shouldn’t place it on your card.

5. Compare your options

One of the best gifts you can give yourself this festive season is to compare the options that are available to you than rushing in to purchase things. This means that it is vital to compare your options when it comes to your loan options and prices for items that you have on your bucket list. Instead of putting everything on your credit card or taking out a loan to finance it ask yourself if it is not possible to pay for it with your debit card or cash.

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