How to save money for the silly season
Published on Tue Nov 13 2018 in Money
It’s almost here! As we draw nearer to December, you might already be planning your Christmas budget. The silly season can be an expensive one, with Kiwis splashing out for gifts, food, parties and travel. Even if you’re planning more modest celebrations, we could all appreciate a little extra in our wallets this time of year!
To help you get ready for this silly season, we’ve come up with seven ways to save money in the lead up to Christmas.
1. Set realistic goals
Knowing how much you want to save could help motivate you over the finish line. Start by listing your Christmas expenses (gifts, food, parties and travel) and estimate how much it should all cost. From there, you can figure out how much you’ll need to save each week to reach your goal—and if this will be possible. You may need to scale back your celebrations or really tighten your purse in November! Not sure where to start? Reviewing last year’s silly season spending might give you a good idea of how much you’ll need this year.
2. Use cash instead of a card
Credit and debit cards are convenient, but they could be too convenient when you’re trying to save money. It can be easy to lose track of spending each time you tap, leaving a nasty shock when you read your statements. Instead, try taking only cash with you each shopping trip. It may mean a little more planning, but it could help you cut back on impulse buys that might blow your budget.
3. Save your spare change
It might be time to dust off the old piggy bank. Start popping your coins into a jar each night, and you may be surprised how much you’ve managed to set aside each week! You can either pledge to save all your unspent coins each night or set up other rules: Only add silver to the jar, save any change in your wallet under $5 or add at least one gold coin to your bank every other day.
4. Have a pre-Christmas garage sale
Why wait for the new year to clear out your home? Unwanted items could add to your silly season savings. Either plan a garage sale at your home or take advantage of online listing sites like TradeMe, Facebook Marketplace, or eBay. To increase the chances of making a sale, take some time to wipe down dusty items and make minor repairs. But don’t underestimate broken items! Things like non-working appliances and vintage clothing could be attractive to someone willing to fix them up (just be clear about any damage in the listing).
5. Cut out one thing
Saving money can sometimes feel overwhelming, especially if you assume that you’ll need to cut everything fun from your budget. But sometimes even small adjustments can make a big impact! Pledge to cut just one luxury from your weekly spend from now until Christmas. For example, if you get a $3.50 takeaway coffee five days a week, that’s $17.50 a week. It doesn’t sound like much, but over six weeks you could save $105! If giving up this one indulgence was easy, you could try slowly cutting others from your routine in the short or long term.
6. Cancel unused subscriptions
People often cancel subscriptions after the new year, but getting the jump on this in November could put a little extra in your pocket. Cancel anything you’re not using or no longer getting good value from. This might include magazines, newspapers, movie or music streaming, gym memberships or meal services. Another bonus of cancelling subscriptions: you might get a better offer to rejoin in January!
7. Schedule a “no spend day”
When all else fails, stepping up your resolve could be the answer. Make one or two days a week “no spend days,” where you aim to spend $0. This might mean tweaking your routine in creative ways—packing lunch instead of buying, walking or biking instead of public transport, or checking out books or movies from your local library. Of course, you can always bend this rule in an emergency, but it could help you stop impulse spending.
It’s easy to get carried away during the silly season. Try these tips to avoid overspending at Christmas and have an happier New Year!
About Author: Momentum Life is a leading provider of Life insurance and Funeral insurance in New Zealand.
The content provided in this article is for information purposes only. The information is of a general nature and does not constitute financial advice or other professional advice. To the extent that any of the content constitutes financial advice, it is limited to Momentum Life products only and does not consider your specific financial needs or goals. You should consider whether the information is appropriate for you and seek independent professional advice, if required.
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