Sleigh your spending this Christmas: budget tips for homeowners and savvy savers

WITH LEIGH DELEDIO AND DANIEL WALSH FROM UFINANCIAL

The festive season is upon us—a time to celebrate Christmas, holidays, and, for many Australians, a flurry of spending. From gifts under the tree to delicious feasts, the holiday spirit often comes with a hefty price tag. For homeowners or those working towards buying a home, balancing the financial festivities with long-term goals like home loans can be challenging. Here’s a closer look at Australian spending habits during Christmas and how you can celebrate without breaking the bank.

Australian Christmas spending stats

• Gift Giving: In 2023, Australians spent an average of $374 on gifts, with the total national expenditure exceeding $20 billion during the festive season

• Festive Feasts: Australians allocate nearly $122 on average for Christmas Day meals and drinks, emphasising our love for celebratory feasting

• Impulse Buys: A recent survey revealed 40 per cent of Aussies admit to overspending during the holidays, leading to lingering financial stress in the New Year, and

• Credit Card Debt: Many households rely on credit cards during December, with average balances surging by five per cent in the month, creating financial strain in January.

Juggling Christmas cheer and home loan responsibilities

If you’re a homeowner or saving for a deposit, it’s crucial to keep long-term financial goals in sight while enjoying the festive season. Here are some tips to keep spending in check:

1. Set a holiday budget: Allocate specific amounts for gifts, food, travel, and decorations. Sticking to a budget ensures you don’t overcommit financially

2. Shop smart: Take advantage of sales, use loyalty rewards, or shop second-hand for unique, budget-friendly gifts

3. Prioritise mortgage payments: If you have a home loan, ensure your mortgage repayments remain a priority—even during the holiday rush. Falling behind can have long-term repercussions, and

4. Plan for next year: Consider creating a Christmas fund for 2025, setting aside a small amount each month to alleviate financial stress next December.

Helpful tools for staying on track

To make your budgeting and planning easier, UFinancial offers a range of tools to support your financial journey:

• Budget Calculator: Plan your festive spending while keeping your home loan and savings goals in check.

• Loan Repayment Calculator: Ensure your holiday expenses don’t interfere with your mortgage repayments by forecasting your payment schedule.

• Extra Repayments Calculator: See how extra holiday income or savings could shorten your loan term and reduce interest.

If you’d like more advice on managing your finances or discussing how to make your mortgage work harder for you, reach out today. Together, we can sleigh your financial goals.

For more information, head to ufinancial.com.au