Tips for Managing Festive Spending When You’ve Got a Mortgage to Pay

Managing festive season expenses can be a source of anxiety, especially now that you're juggling a mortgage. It’s completely understandable to feel stressed about striking a balance between enjoying the holidays and sticking to your financial commitments. The good news is that with a bit of proactive planning and budgeting, you can enjoy the season without derailing your financial goals. Here are some tips to reduce anxiety and stay in control of your Christmas spending:

1. Make a list, and check it twice!

Start by setting a realistic holiday budget that aligns with your income and expenses, keeping your mortgage payment top of mind. Break the budget down into categories like gifts, food, decorations, travel, and entertainment. A clear budget will help you track your spending and avoid impulse purchases that could put a strain on your finances. Download our free printable Christmas budget spreadsheet that you can pop on your fridge as a friendly reminder.

2. Prioritise spending

With your mortgage and other financial obligations in place, it's crucial to prioritise where your holiday money goes. Decide on a few key areas where you'd like to spend (like buying gifts for immediate family or hosting a holiday dinner) and cut back on less essential activities. For instance, you might decide to forgo extravagant festive parties or expensive decorations.

3. Stick to "cash-only" for gifts

Rather than relying on credit cards, consider using cash or a debit card for Christmas gift purchases. This will help you avoid accumulating debt that you’ll be paying off in the new year, which could add to your financial stress. If you prefer to use a credit card for points or rewards, make sure to pay it off immediately to avoid interest.

4. Cut back on non-essential expenses

Look for ways to reduce expenses in the lead-up to the holidays. For example:

Cancel or pause subscriptions you don't need for a couple of months.
Prepare meals at home instead of dining out.
Limit discretionary purchases like new clothes or gadgets. Small adjustments like these can free up more funds to allocate to the holidays while still keeping your mortgage payments on track.

5. Take advantage of sales and discounts

The lead-up to the holidays is full of sales, but it’s important to be strategic. Plan your shopping early to take advantage of promotions or Black Friday/Cyber Monday deals. Consider buying items you know people will like in advance, and avoid purchasing items just because they're on sale.

6. Gift responsibly

Gift-giving doesn’t have to be expensive to be meaningful. Consider alternatives to high-cost presents, such as:

Homemade gifts (like baked goods, candles, or crafts).
Experience-based gifts (like concert tickets, cooking classes, a picnic or a getaway).
Group gifting for shared presents, like a family gift or joint experience.

The holiday season is more about thoughtfulness than extravagance, and loved ones will appreciate the sentiment regardless of the cost.

7. Embrace low-cost activities

Instead of spending money on big outings, explore low-cost or free festive activities with family and friends, such as:

Home movie nights or watching holiday films on streaming services.
Baking together or organising a potluck dinner.
Holiday light displays or nature walks in your neighborhood. The holidays don’t have to revolve around expensive experiences to feel festive.

8. Plan for post-holiday financial health

Consider how you’ll manage any leftover bills after the holidays. If you're using credit cards or taking on any debt, plan to pay it off as soon as possible in the new year to avoid carrying debt forward. Create a post-holiday financial "reset" plan that focuses on paying down any short-term debt and staying on top of your mortgage payments.

9. Track your spending during the holidays

Use an app or budgeting tool to track your spending in real-time. This will help you stay on top of your holiday budget and ensure you don’t overspend. It also gives you a quick snapshot of how much you’ve allocated for each category (gifts, food, travel), so you can make adjustments if needed.

10. Have conversations about expectations

If you have family members or friends who also give gifts or organise holiday events, have honest conversations about your financial situation. Let them know you’re mindful of your mortgage payments and other commitments, and suggest alternative ways to celebrate, such as drawing names for gift exchanges or focusing on spending quality time together instead of expensive presents.

11. Practice mindfulness

Managing finances during the holidays can be overwhelming, especially with the added stress of homeownership. Take time to practice mindfulness and focus on what’s truly important—your well-being, your home, and the people you love. Managing your stress, eating well, and getting enough sleep will help you make clearer, less emotionally driven decisions when it comes to spending.

12. Seek help if necessary

If your anxiety about finances and home mortgage becomes overwhelming, don’t hesitate to reach out. I can help you come up with a plan that works for your specific situation. Many professionals can help you create a financial roadmap to ease holiday stress while ensuring your mortgage stays top priority.

By planning, prioritising your spending, and staying mindful of your financial commitments, you can navigate the festive season without jeopardising your mortgage or financial health. The key is to enjoy the holidays without overspending—so you can look forward to a financially stable new year!

And if you need any assistance with your loan, please reach out to our helpful team. Call us on 02 8850 9040 or email homefinance.support@loanmarket.com.au