The holiday season always brings a unique mix of joy and financial pressure for many Australians. Between end-of-the-year celebrations, Christmas shopping, and summer travel, your wallet is likely already feeling the strain. Still, December isn’t just about spending. It’s also the perfect time to set yourself up for financial success in the coming year.
Think of December as your financial springboard into the new year. While everyone else is caught in the oh-so-jolly holiday rush, you can take smart money steps to strengthen your finances (and avoid that January post-holiday money hangover).
Ready to make the most of this season? Here are seven strategic money moves that help you celebrate the season while keeping your wallet on track.
1. Review Your Holiday Budget (And Keep to It!)
The silly season is undeniably exciting, but don’t get carried away. Set a realistic budget for gifts, food, and celebrations. A recent ASIC survey shows Aussies spend an average of $995 during Christmas, so make sure you’re not spreading yourself too thin!
Try using the envelope method for your holiday spending. Create separate budgets for gifts, food, and events. By separating all spending, it’s easier to avoid going overboard. You’ll have to hold yourself accountable throughout the festive season.
2. Check Your Super Contributions
December is also your last chance to maximise your super contributions for the year. Check if you’re on track to hit the concessional contributions cap. Making additional contributions now could help you reduce your taxable income down the line.
Also, don’t forget to look into government co-contribution schemes if you’re eligible. For many Australians, making a personal super contribution before December 31st means getting up to $500 in government contributions.
3. Plan for Back-to-School Expenses
With all the focus on the holiday festivities, don’t forget that back-to-school is just around the corner in January. If you’re a parent, start setting money aside now for uniforms, books, and other supplies. Many retailers start their early-bird discounts in December — take advantage of these savings!
Tight on cash this year? Consider reaching out to your school’s second-hand uniform shop or join a local parents group. This is a great place to find used uniforms, textbooks, and supplies without compromising on quality.
4. Review Your Insurance Policies
Now is also a great time to check your insurance policies. Are you still getting the best deal? Many insurers increase premiums at renewal time without notice. Compare rates from multiple providers, and don’t hesitate to negotiate. It could mean saving hundreds!
Keep an eye out for December specials from insurance providers looking to meet their end-of-year targets. Some companies also offer significant discounts if you bundle multiple policies or pay annually (vs. monthly).
5. Book Those Health Insurance Extras
Most health insurance ‘extras’ and benefits reset on January 1st. That means right now is the best time to book those dental check-ups, eye exams, or physio appointments. If you don’t use these, you’re essentially leaving money on the table.
To encourage members to use their benefits, many providers offer higher rebates and discounts. Make a quick list of anything you’ve been putting off, like new glasses or orthotics, and get them booked!
6. Check Your Subscriptions
Let’s be honest, when was the last time you checked your monthly subscriptions? We all have them: streaming services, gym memberships, and apps we barely use. December is the perfect time for a subscription audit.
Cancel what you don’t need and look for annual payment options on the apps you wish to keep. By paying annually vs. monthly, you can save significantly. Take it a step further by tracking how often you actually use each service. You might be surprised by what you find.
7. Set Financial Goals for the New Year
Lastly, take some time to reflect on your 2024 money goals and plan ahead. Did you hit your savings targets? Could you boost your emergency fund? Write down specific, measurable goals for the new year.
To take it further, break your goals down into monthly milestones. This makes them less overwhelming and easier to track. Whether it’s saving for a house deposit or building an investment portfolio, clear plans make you more likely to succeed.
Need Extra Help? You’re Not Alone
If you’re feeling overwhelmed by holiday expenses or want to start 2025 on the right financial foot, don’t go it alone. The Debt Busters team is here to help with personalised advice and support.
Call us on 1300 368 322 to chat with our friendly experts. Remember, small steps now can lead to big financial wins in the new year. Happy planning!
Want more money-saving tips? Check out our guide to setting up a successful budget from scratch or learn about smart ways to reduce your Christmas spending.