Six Christmas spending tips to avoid a financial hangover in 2021

1. Set a budget for your Christmas spending

Draw up a budget for your Christmas spending – not just presents, but the additional spending on food, drink and socialising.

Place this Christmas component of your budget within the rest of the household budget, so that you can manage the overall effect Christmas spending has on your finances over a number of months.

Try not to spend more than you can really afford, or have allocated in your budget.

2. Use savings wisely

Make sure you know how your extra spend is going to be financed. Perhaps it means withdrawing funds from a savings account, in which case make sure you access the money from the account paying the least interest.

3. Pay off credit cards quickly

If you use a credit card, try to ensure that you pay off the balance in full when the bill arrives in the New Year. Generally, credit cards are an expensive way to borrow money – and store cards are even worse, given that they generally have higher interest rates.

If you’re taking advantage of credit card deals that offer 0% rates on balance transfers, make sure you know the date at which this introductory “teaser” rate comes to an end and pay off the balance before then.

4. Keep a running total

Keep a close check on your spending – maybe by compiling the running total on your mobile phone or tablet.

The bills will come in after Christmas as surely as night follows day, but you’ll be better placed to manage them, if you know what the bottom line of your spend amounts to on each card.

5. Get your finances on track in the New Year

Finally, once Christmas is out of the way check in with your Financial Adviser  and make sure you are on track for your goals for 2021.

6. Enjoy the holiday break in ways that don’t cost anything 
It’s really not that hard if you put your thinking caps on!!

– Merry Christmas from the Stream Team