Christmas is the season of joy. It’s a time of turkey, tinsel and tipples. But for many of us (including LOTS of you readers who responded to an Instagram poll), the biggest thing that’s front of mind during December is M-O-N-E-Y.
Now that we’ve all merrily joined the adult bandwagon, we can’t escape the fact that money is an important part of the silly season, especially if you’re saving for a holiday or a new house. There are so many extra financial demands at this time of year that dosh can quickly be going out faster than its coming in. What starts out feeling like a twinkly, fun time of year with excess Mariah can quickly come tumbling down in a stream of Lindauer hangovers as you regret all those late night Christmas splurges and last-minute-Christmas shopping trips, or going overboard for your old university friends because you’re attempting to atone for being a shit friend and not seeing them all year. Add to that the excessive ‘female tax’ which hits us hard as we go into Summer (read: waxing, new shoes, Christmas outfits, that shimmer fake tan you just ‘had’ to have) it’s no wonder that we’re dusting off our credit cards.
The result? A stressed out mess who wants to hide under the duvet until Santa’s firmly back up the chimney. Let’s ask ourselves one simple question: WHY ARE WE DOING ALL THIS?
Now I’m not trying to tell you how to do Christmas. If you CAN afford to go crazy and not fret about it, be my guest. But if you feel like you need to check in for Christmas-spenders-anonymous after the silly season is over, or worrying about bills is ruining all your fun, it may be time to take back the reigns to Santa’s sleigh.
Holy Mary!
Unfortunately, the Christmas magic doesn't extend to conjuring up extra dosh in your seasonal budget and there's no real big secret here. The reality is though, there is another, better way. It's about making smart swaps when it comes to socialising and gift-giving and taking a moment now to plan realistically for the month ahead.
Sometimes, it’s a good idea to ask an adultier adult for some help when life gets tricky - and this is one of those times. So, I wrote to the AMAZING money expert Mary Holm for some tips on what us millennials should do to keep Christmas under control.
In case you didn’t know, Mary Holm has columns in the Weekend Herald and the Australian Women’s Weekly (NZ version). She also has a regular segment on Jesse Mulligan’s RNZ show, which is podcast by RNZ. She often comments on New Zealand radio and television and leads savings and financial seminars, including for the Financial Markets Authority. She’s also written a brilliant bestselling book I’ll be reading over summer ‘Rich Enough: A Laid Back Guide for Every Kiwi’, which helps people with their money but also looks at the relationship between money and happiness. (watch my Instagram - I’ll be giving away a copy of the book soon!).
Mary’s suggestions are as fresh as they are practical:
Gifting for Girlfriends!
“Refuse to get caught up in the “I have to buy her a big present because she will buy me one” madness” Mary says (guilty as charged, Mary - see my Mecca receipts). “Instead give your time – maybe a voucher that says you will be her slave for two Saturday afternoons, doing whatever she needs help with! Or maybe the voucher says you will plan and put together a yummy picnic with her in a beautiful place. Encourage her to do the same.”
Pay yourself first.
Mary: “Don’t fritter away all your cash over Christmas. On the day you read this – not in the new year! - set up an automatic transfer from your bank account to a savings account of, say, $20 or $50 a week. At the start of every month, increase the amount by so little that you’ll barely notice it. Every time you accumulate $100 or $200 move it into KiwiSaver or another investment. The trickle will become a flood.”
[This is such useful advice. I must admit, I’ve been relatively useless with automatic payments in 2019 because of the randomness of our living circumstances. However, Mary’s suggestion makes sense. It’s time to start to ‘pay myself’ first. I’m planning on setting up an automatic payment to invest in 2020, and also for my bills. Anyone else?]
Family values!
Mary suggests that you and your family tries some of the fun cheap Christmas ideas she suggests in her recent Weekend Herald column, here. They include a “second-hand book Xmas” and a “get rid of our unwanted stuff to another lucky family member Xmas”. While you’re at it, check out the Meaningful Christmas Gifts list at the bottom of that column too.
But wait, there’s more…
Inspired by Mary, I’d like to make one or two further suggestions.
First, avoid going out for drinks as much as possible. I suggest buying booze at the supermarket and drinking at someone’s house. I find that the cost of alcohol and food REALLY adds up over Christmas, especially for Wellingtonians like me who enjoy eating out! You have been warned.
Second, make something thoughtful - homemade baked treats, pottery or paintings always go down well. Also try the secret santa approach to gifting!
Third, budget for entertainment - try and think about what you’ll likely do, the parties you’ve committed to and then carve up your discretionary spending for the month. Talk it over with your partner to ensure you’re both on the same page and there are no ‘hidden surprises’.
Fourth, DO NOT GET A CREDIT CARD. You don’t ‘need’ it. You can work around it. I promise you’ll feel better in the long run. Ditto if you’ve paid off an overdraft recently. Avoid sliding back into debt.
House deposits, honeymoon or a wedding anyone?
If you’re saving for a house deposit or a wedding (like we are) you might be overwhelmed by all the incoming Christmas stresses. Likewise, if your family are contributing to some big upcoming costs, I would recommend talking to them and all creating a pact not to buy for one another this Christmas. Boring, I know. But this is what Matt and his parents and my parents and I are doing. It’s just there’s so much money coming out in February, it would be bonkers for us all to go out and buy more stuff. We will stick with a barbecue on Christmas Day and a few rounds of Gin Rummy instead.
A Quick Personal Note
2019 has been a huge year finance wise for Matt and I. Yes, some funds we’ve let trickle out. But there’s been huge wins too. We’ve house-sat to save and are looking at continuing to save for a deposit for a property. We’re also paying a third for our wedding, have no debt, have savings in the bank and I even paid of my student loan! While we might not have achieved perfection (I need to start investing ASAP), there absolutely has been progress.
Hopefully, you’ll be able to walk into 2020 with your head held high, knowing you did your best!
Let me know if you’d like more finance blogs in 2020 and leave me a comment below.
Wearing dress by Witchery, bag from Cranfields and Bata Bullet sneakers.