January 19, 2025 • 16 mins
Could you imagine starting the new year burdened by last year's holiday debt? In our latest episode, we unravel the secrets to sidestepping this all-too-common pitfall and stepping into financial freedom. With a staggering 28% of individuals still haunted by holiday bills a year later, we offer a fresh perspective on holiday spending. Discover how treating it like a regular monthly expense and adding a safety buffer can transform your approach. We promise you'll walk away with practical strategies to break free from the holiday debt cycle and a newfound confidence to enjoy the festive season without financial stress.
Beyond budgeting, let's explore creative and heartfelt ways to celebrate that won't break the bank. From outdoor activities to the art of giving handmade gifts or time vouchers, this episode is packed with ideas for meaningful connections without overspending. We highlight the power of using cash or debit to curb unnecessary debt and keeping expenses in check by tracking them in real-time. Our focus is on shifting your mindset: prioritise gratitude and connection over costly gifts and extravagant celebrations. Start the new year with a clean slate and a refreshed financial outlook, cherishing those important moments with loved ones over financial burdens.
For any enquiries or to connect with Oscar, Zeke, or their company, Asset Road, listeners can visit the following links:
The advice shared on The Finance Bible is general in nature and does not consider your individual circumstances. The Finance Bible exists purely for educational / entertainment purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs.
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Disclaimer:
The information provided in this podcast is general in nature and does not constitute personal financial advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. Asset Road Pty Ltd recommends you seek independent financial, legal, taxation or other advice as required. All investments carry risk. Past performance is not indicative of future results.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
28% of people who go into debt during the holidays
are still paying it off anentire year later.
Imagine starting Januaryalready buried under last year's
bills, stressed out andwondering how to make ends meet.
And here's the kicker holidaydebt isn't just a January
problem.
It's a freedom problem.
You can't achieve financialindependence if you're stuck
(00:21):
paying for last year's Christmas.
In this episode, we're soundingthe alarm and giving you the
exact steps to break free fromthe holiday debt trap.
We're going to uncover why 65%of people feel stressed when the
holidays roll around and howyou can avoid being one of them.
This is your wake-up call.
Don't miss it.
Welcome back to another episodeof the Finance Bible Podcast.
(00:56):
Zeke here and your co-host,oscar.
But before we get into it,please note that nothing in this
podcast should ever beconsidered as personal financial
advice.
Of course, if that is what youare seeking, reach out.
We'll get you in touch with thecorrect professionals.
Get the job done properly.
Sit back, relax and enjoy theshow.
Let's get into it.
Welcome back to the FinanceBible Podcast today.
(01:21):
You are with myself, oscar, foranother episode.
A couple of weeks I'll be withZeke in person.
So we'll be doing a traditionalone-on-one podcast there, which
I'm looking forward to, buttoday we're going to be jumping
into how to never get in debtduring the holiday period again.
So what I'm talking about isyou finish work in December,
(01:42):
you've got a couple weeks off.
You might have two, three, fourweeks if you're lucky and
you're in a rush.
You need to buy those Christmaspresents.
You might be hosting Christmas,you might be hosting a New
Year's party and then all of asudden you've got all these
expenses coming and then youfeel like you're kind of
drowning in debt.
This is really to help you andto help anyone out there who
(02:04):
feels like when Christmas comes,they're instantly stressed
because the first thing theywant to think about is the money
side of things.
So how can we avoid this fornext December?
An alarming fact aboutChristmas and spending is 28% of
people who go into holiday debtare still paying it off a year
(02:25):
later.
Are you one of the 28% stillpaying off your debt from
Christmas or New Year's ormight've been a trip 12 months
later?
Did you put it on a credit cardat the time and said you're
going to get around to it, butyou're still slowly struggling
to pay that debt?
Well, on top of that statisticas well.
65% of people report feelingstressed about holiday expenses,
(02:49):
and this stress can overshadowthe joy of holidays and spending
time with your family becauseyou're stressed about money.
The good news is, with the rightsystem and mindset, it's
actually very, very simple toavoid this cycle entirely, and
that's what I'm going to showyou in this episode.
It's quite a basic, simplemindset shift.
(03:13):
Slash a formula you do, but itreally helps you down the track.
So you got to treat Christmaslike a monthly bill.
That's the first step.
When you think of Christmas,it's a monthly bill which you
need to pay for and put aside.
So one of the biggest traps isletting the holiday sneak up on
you.
You know how it goes.
You have New Year's, you startthe year off, then it's March
(03:36):
and then it's May and then it'sSeptember.
Then all of a sudden it'sDecember and You're freaking out
.
You've got Christmas, you'vegot money to spend.
You've realized that youactually haven't hit your goals
for the amount of money you have.
Hopefully you have, but in alot of cases and, as you can see
, 65% of the population don'thit the goals that they're
(03:58):
putting aside for themselves ofthe money and feeling stressed.
So then your credit card isgoing to get a workout and you
fall into the trap again 12months later, you're still
paying it off.
The key to this approach yougotta treat it like an ongoing
expense, just like your rent,your utilities, your gym
membership, whatever membershipsyou have, your Uber, your
Netflix.
(04:18):
Put the money aside.
So, first thing you need to do,open up your bank statement.
Look back at everything you'vespent last year in your holiday
period.
So, once you finish work towhen you go back to work, you
might have had a little trip,interstate, you might have gone
down to the beach, you mighthave gone to town, you might
(04:38):
have gone internationally.
Whatever you've done, add itall up, including gifts,
including your food, includingtravel, including accommodation,
fuel and anything else holidayrelated.
The key to this, though, isbeing extremely detail
orientated, so you need to makesure that to the cent, because
we need to add everything up sothat you have a figure, and you
(05:02):
may even want to add up two orthree years in a row and figure
out the average of what youroughly spend, if some years, it
fluctuates quite a bit, butthis exercise is about getting a
clear picture of what theholidays really cost you.
So, for example, let's just saylast year you spent $2,000
across the holiday period.
So you might've spent a bit onsome gifts and then you might've
(05:25):
been hosting Christmas or youmight've gone away for a weekend
and it's come up to $2,000.
The next thing you want to lookat doing add 20% to your total.
Why would you add 20%?
Well, the reason is expensesoften rise unexpectedly so you
may have emergencies or lastminute gifts.
So, for example which I knowone for myself I had a secret
(05:46):
Santa and I was on my way to theevent and I thought I've done
all my Christmas shopping andeverything's paid for and then
all of a sudden I realized I hadto spend around $50.
So things like that unexpectedgifts, last minute gifts,
emergencies so yeah, add 20% tothe figure that you've added,
because you never know whathappens.
So let's say $2,000, add 20%gives you 2,400.
(06:12):
You may not need the fullamount.
So even if you add 20%, youmight not need it, and that's
okay.
You just roll the extra fundsinto next year's holiday savings
.
So you're still going to haveit, but you roll it over and
worst case scenario or best casescenario, depending how you
look at it.
If you've got leftover funds,maybe you want to buy yourself a
(06:33):
present or take yourself out,or a friend or a partner out for
a night out, so that's that.
Next, you've got to divide youradjusted total by 12 months,
because obviously there's 12months in the year.
So, for example, $2,400,.
This comes out to $200 permonth, or, if you're a weekly
(06:55):
thinker, it's $50 per week.
So, just like that, to saveyour $2,400 for the year, that
you need for Christmas is only$50 per week you need to put
aside.
When you save incrementallythroughout the year, the
financial hit of the holidaysand Christmas feels a lot
smaller.
$50 a week is nothing.
I'm pretty certain that if yougo out on the weekend, you're
spending at least $50 on dinnerand drinks with friends and
(07:18):
socializing, but you can alsoput another $50 aside to
decrease your stress.
In 12 months time.
It's a no brainer.
The secret weapon, though, isautomating your direct debits,
so set up a recurring transferto a dedicated savings account,
ideally one which has a highyielding savings, so that you
(07:40):
can get the added benefit ofearning a little bit more
interest when it does come timefor December.
As opposed to having 2,400 onthe dot, you might have a little
bit more $2,500, $2,600.
And, as I said earlier, youmight want to buy yourself, or
someone's been good to you thatyear, you might want to give
them something a little bitextra.
But you've got to set it uponce of.
(08:01):
It might be a weekly directdebit, it might be a monthly,
pending on when you get paid,and that's obviously for you to
figure.
The main thing is you set it uponce and then you fully forget
it.
That's the best thing about it.
And then all of a sudden, comeNovember, december, when you
start thinking about it, oh look, you've got $2,400 or whatever
(08:21):
your amount is, in your bankaccount ready to spend.
So you're not going to bedigging into that credit card
that you've been using all somany years before, or your
savings that you've been workinghard to build up that year.
Why the system works for so manypeople?
The main reason is it'sstress-free.
You're going to start theholidays with a stress-free
(08:42):
mindset.
You know that you've alreadysaved for holiday expenses, so
you've reduced your stress andnow you can have fun with your
friends, family, do what youwant to do.
Another benefit of this isyou're starting the new year
fresh.
You're not paying off debt thatyou paid for 12 months ago.
You're starting the yeardebt-free, so you're minimizing
your pile of credit card bills,which, for anyone out there with
(09:02):
credit card bills and when youpay them, it's a very nice
feeling once you've done that.
But the main thing is makingsure that you automate the
direct debit, because if you dothat, you don't think about it.
It just keeps coming out,obviously, with your own pay, if
you're on a higher income asopposed to a lower income, you
may have to adjust it dependingon what you want to do, but at
(09:23):
the end of the day, if you areone of those individuals who get
stressed in December forChristmas, highly recommend
doing this.
Even if you start at $20 or $30a week, just automate the
deposits and start seeing yourbalance rise up over time and
start seeing as well your stressdecrease when we're getting to
(09:44):
the end of the year.
Some other proactive tips forstaying debt-free.
Number one create a holidaybudget and stick to it.
So my previous episode I spokeabout how budgeting is such an
important tool and how Iactually used it when I started
out, kind of focusing more on mypersonal finance.
I still do today, especiallywith holidays.
Set your budget, set your limit, figure out how much you will
(10:06):
spend on gifts, food, you knowdecorations and events, and then
include some limits for eachcategory so you're not
overspending when you can'tafford it because that's a
important one.
You might go to the bar andyour friends are spending all
this money on drinks and youfeel like you may have to you
know, continue and mirror themand keep spending money as well,
but the end of the day, theydon't know if you have money or
(10:29):
not.
So if you know, you're the onlyone who knows that.
So if you know you can't affordit, don't do it.
It's as simple as that.
Bite the bullet, don't do it.
Or socialize doing somethingfree of charge, like go for a
run, go to the gym depending onwhat gym you are it could be an
outdoor workout, or just go geta coffee for $3.
There's so many differentoptions as to overspending.
(10:51):
When you socialize, look atembracing thoughtful and
low-cost alternatives.
Maybe it's time to shift thefocus from expensive gifts to
just meaningful gestures.
So this may include handmadeitems, different experiences or
a time coupon offering a skillor service you can provide For
example, you might think you'rea really good masseuse a skill
(11:14):
or service you can provide.
For example, you might thinkyou're a really good masseuse.
You might want to make a littlevoucher to your siblings or
your friends that you'll givethem a 60-minute massage.
Who knows Something as simpleas that?
Number three you may want tohost a potluck-style gathering.
So instead of footing theentire bill for holiday meals
and actually hosting people forChristmas Day and buying all the
food and everything, you maywant to make it a collaborative
(11:35):
event.
Get guests to bring drinks anddishes and different types of
things that you may wantDesserts, someone might be good
on the salad, someone might begood on meat Typical
diversification diversify withyour guests so this will ease
the financial burden.
I myself, I know that ourfamily's done that for the last
10, 15 years anyway, but forthose who don't actually do that
(11:58):
and someone footing the entirebill themselves, this is an
extremely important one.
Number four use cash or debit,never credit.
Especially in the holidayperiod, you're a bit more
emotional with your spendingbecause in the back of your mind
you've realized it's Christmastime, you might have the Boxing
Day sales and you might have theBlack Friday sales.
(12:19):
Not sure, I think that's before, but you've got all these sales
coming and obviously, when youget ads pop up on your Facebook
feed, on your phone, going outin public, you're thinking, oh,
I can save $400 on this.
The thing is, if you don't buyit, you save the whole amount.
Don't use your credit card,because that's where the
(12:40):
mistakes happen and, as you'veseen, many individuals are still
paying off their debt from theyear before.
So stick to cash or debit cardsto stay within your means.
But if you do have to use yourcredit card, like I know some
cases, people have to use creditcards based on pay cycles or
things that are happening, whichis fine Only if you can pay it
(13:01):
off as soon as possible orwithin a week to avoid any
interest charges, because, as weall know, credit cards can
absolutely wreck you withinterest charges, especially if
you don't pay it, and good luckgetting out of them, because
they make it pretty tough.
Last point, number five trackyour spending in real time.
So this goes back to thebudgeting in point one.
But use budgeting apps or evena simple spreadsheet to keep
(13:26):
tabs on your expenses as theyhappen.
So with the budgeting for pointone, you may just wanna pop in
rough numbers of what you canactually spend on, based on your
income per week or per month.
But with this point, what thisis saying is, now that you
actually have spent the money,you've got to keep tracking and
(13:46):
adding to the budget at livetime.
So if you've gone out and justspent $200 on let's just use,
for an example, a nice shirtSoon, as you get home you have
to add that to your budget andsee how much you have left.
You may only have $20 left oryou might have gone over by $50.
And then you're going to haveto take 50 off for another
(14:06):
category and reduce that.
So keep tabs on expenses as theyhappen, because that is so
important.
Without doing that, a budget isliterally irrelevant.
And the most important thingwith tracking your spending in
real time is seeing yourspending in black and white
literally helps you stayaccountable.
It's as simple as that.
You can't spend more than youearn because otherwise you're
(14:26):
going in debt, and that's a badplace to be, as we know,
especially with the Christmastime and holiday season.
So that is probably the mostimportant, I guess, for the
actual holiday season.
All it is.
It's so simple, it's a simplemindset.
Shift Everything in life.
You can just shift it with yourmindset.
You just gotta ask yourself adifferent way.
For this example, I want you toask yourself what is more
(14:51):
important to you Short-termsatisfaction or long-term
financial freedom?
True spirit of the holidaysisn't about the flashy gifts or
the extravagant meals.
It's about gratitude,connection, making memories and
having fun with friends andfamily.
Are you more aligned with yourshort-term satisfaction of
(15:13):
wanting to buy the latest Appleor Samsung or something which
makes you happy for the couplemonths and then you're over it?
Or are you wanting thelong-term financial freedom?
So actually automating yoursavings so that when December
comes around this year, you'reset, you are ready to go, you
don't have to stress.
You go straight out to theshopping center in Melbourne.
(15:34):
You'd be going to Chadston,like I do for myself, and you've
got your money, your spendingand, worst case scenario, you
may need to spend a little bitmore of your own money which you
have in your bank account notthat you've saved up for, but
it's not going to be as much asyou would have had to the year
before or go into debt.
Ask yourself that question notgoing to be as much as you would
have had to the year before orgo into debt?
(15:56):
Ask yourself that question.
Imagine starting January withzero holiday debt no credit card
bills, no financial hangover,just a fresh start.
It'll feel extremely, extremelyfresh.
By planning ahead, treatingChristmas as a year-long expense
and automating your savings,that vision can literally become
a reality.
And if you've never experiencedthat before, please make sure
(16:19):
that next Christmas it comesaround.
Put that first.
Make that your priority.
Don't let the holidays dictateyour financial future.
Take control and enjoy theseason for what it truly is.
We hope you enjoyed the episode.
As always, we know exactly whatto do.
Hit that follow button,subscribe, whatever platform you
listen to this podcast on.
Also share it to friends,family, co-workers, whoever you
(16:43):
think may benefit from it.
But unfortunately, that's theend and we'll see you next week.
28% of people who go into debt during the holidays
are still paying it off anentire year later.
Imagine starting Januaryalready buried under last year's
bills, stressed out andwondering how to make ends meet.
And here's the kicker holidaydebt isn't just a January
problem.
It's a freedom problem.
You can't achieve financialindependence if you're stuck
(00:21):
paying for last year's Christmas.
In this episode, we're soundingthe alarm and giving you the
exact steps to break free fromthe holiday debt trap.
We're going to uncover why 65%of people feel stressed when the
holidays roll around and howyou can avoid being one of them.
This is your wake-up call.
Don't miss it.
Welcome back to another episodeof the Finance Bible Podcast.
(00:56):
Zeke here and your co-host,oscar.
But before we get into it,please note that nothing in this
podcast should ever beconsidered as personal financial
advice.
Of course, if that is what youare seeking, reach out.
We'll get you in touch with thecorrect professionals.
Get the job done properly.
Sit back, relax and enjoy theshow.
Let's get into it.
Welcome back to the FinanceBible Podcast today.
(01:21):
You are with myself, oscar, foranother episode.
A couple of weeks I'll be withZeke in person.
So we'll be doing a traditionalone-on-one podcast there, which
I'm looking forward to, buttoday we're going to be jumping
into how to never get in debtduring the holiday period again.
So what I'm talking about isyou finish work in December,
(01:42):
you've got a couple weeks off.
You might have two, three, fourweeks if you're lucky and
you're in a rush.
You need to buy those Christmaspresents.
You might be hosting Christmas,you might be hosting a New
Year's party and then all of asudden you've got all these
expenses coming and then youfeel like you're kind of
drowning in debt.
This is really to help you andto help anyone out there who
(02:04):
feels like when Christmas comes,they're instantly stressed
because the first thing theywant to think about is the money
side of things.
So how can we avoid this fornext December?
An alarming fact aboutChristmas and spending is 28% of
people who go into holiday debtare still paying it off a year
(02:25):
later.
Are you one of the 28% stillpaying off your debt from
Christmas or New Year's ormight've been a trip 12 months
later?
Did you put it on a credit cardat the time and said you're
going to get around to it, butyou're still slowly struggling
to pay that debt?
Well, on top of that statisticas well.
65% of people report feelingstressed about holiday expenses,
(02:49):
and this stress can overshadowthe joy of holidays and spending
time with your family becauseyou're stressed about money.
The good news is, with the rightsystem and mindset, it's
actually very, very simple toavoid this cycle entirely, and
that's what I'm going to showyou in this episode.
It's quite a basic, simplemindset shift.
(03:13):
Slash a formula you do, but itreally helps you down the track.
So you got to treat Christmaslike a monthly bill.
That's the first step.
When you think of Christmas,it's a monthly bill which you
need to pay for and put aside.
So one of the biggest traps isletting the holiday sneak up on
you.
You know how it goes.
You have New Year's, you startthe year off, then it's March
(03:36):
and then it's May and then it'sSeptember.
Then all of a sudden it'sDecember and You're freaking out
.
You've got Christmas, you'vegot money to spend.
You've realized that youactually haven't hit your goals
for the amount of money you have.
Hopefully you have, but in alot of cases and, as you can see
, 65% of the population don'thit the goals that they're
(03:58):
putting aside for themselves ofthe money and feeling stressed.
So then your credit card isgoing to get a workout and you
fall into the trap again 12months later, you're still
paying it off.
The key to this approach yougotta treat it like an ongoing
expense, just like your rent,your utilities, your gym
membership, whatever membershipsyou have, your Uber, your
Netflix.
(04:18):
Put the money aside.
So, first thing you need to do,open up your bank statement.
Look back at everything you'vespent last year in your holiday
period.
So, once you finish work towhen you go back to work, you
might have had a little trip,interstate, you might have gone
down to the beach, you mighthave gone to town, you might
(04:38):
have gone internationally.
Whatever you've done, add itall up, including gifts,
including your food, includingtravel, including accommodation,
fuel and anything else holidayrelated.
The key to this, though, isbeing extremely detail
orientated, so you need to makesure that to the cent, because
we need to add everything up sothat you have a figure, and you
(05:02):
may even want to add up two orthree years in a row and figure
out the average of what youroughly spend, if some years, it
fluctuates quite a bit, butthis exercise is about getting a
clear picture of what theholidays really cost you.
So, for example, let's just saylast year you spent $2,000
across the holiday period.
So you might've spent a bit onsome gifts and then you might've
(05:25):
been hosting Christmas or youmight've gone away for a weekend
and it's come up to $2,000.
The next thing you want to lookat doing add 20% to your total.
Why would you add 20%?
Well, the reason is expensesoften rise unexpectedly so you
may have emergencies or lastminute gifts.
So, for example which I knowone for myself I had a secret
(05:46):
Santa and I was on my way to theevent and I thought I've done
all my Christmas shopping andeverything's paid for and then
all of a sudden I realized I hadto spend around $50.
So things like that unexpectedgifts, last minute gifts,
emergencies so yeah, add 20% tothe figure that you've added,
because you never know whathappens.
So let's say $2,000, add 20%gives you 2,400.
(06:12):
You may not need the fullamount.
So even if you add 20%, youmight not need it, and that's
okay.
You just roll the extra fundsinto next year's holiday savings
.
So you're still going to haveit, but you roll it over and
worst case scenario or best casescenario, depending how you
look at it.
If you've got leftover funds,maybe you want to buy yourself a
(06:33):
present or take yourself out,or a friend or a partner out for
a night out, so that's that.
Next, you've got to divide youradjusted total by 12 months,
because obviously there's 12months in the year.
So, for example, $2,400,.
This comes out to $200 permonth, or, if you're a weekly
(06:55):
thinker, it's $50 per week.
So, just like that, to saveyour $2,400 for the year, that
you need for Christmas is only$50 per week you need to put
aside.
When you save incrementallythroughout the year, the
financial hit of the holidaysand Christmas feels a lot
smaller.
$50 a week is nothing.
I'm pretty certain that if yougo out on the weekend, you're
spending at least $50 on dinnerand drinks with friends and
(07:18):
socializing, but you can alsoput another $50 aside to
decrease your stress.
In 12 months time.
It's a no brainer.
The secret weapon, though, isautomating your direct debits,
so set up a recurring transferto a dedicated savings account,
ideally one which has a highyielding savings, so that you
(07:40):
can get the added benefit ofearning a little bit more
interest when it does come timefor December.
As opposed to having 2,400 onthe dot, you might have a little
bit more $2,500, $2,600.
And, as I said earlier, youmight want to buy yourself, or
someone's been good to you thatyear, you might want to give
them something a little bitextra.
But you've got to set it uponce of.
(08:01):
It might be a weekly directdebit, it might be a monthly,
pending on when you get paid,and that's obviously for you to
figure.
The main thing is you set it uponce and then you fully forget
it.
That's the best thing about it.
And then all of a sudden, comeNovember, december, when you
start thinking about it, oh look, you've got $2,400 or whatever
(08:21):
your amount is, in your bankaccount ready to spend.
So you're not going to bedigging into that credit card
that you've been using all somany years before, or your
savings that you've been workinghard to build up that year.
Why the system works for so manypeople?
The main reason is it'sstress-free.
You're going to start theholidays with a stress-free
(08:42):
mindset.
You know that you've alreadysaved for holiday expenses, so
you've reduced your stress andnow you can have fun with your
friends, family, do what youwant to do.
Another benefit of this isyou're starting the new year
fresh.
You're not paying off debt thatyou paid for 12 months ago.
You're starting the yeardebt-free, so you're minimizing
your pile of credit card bills,which, for anyone out there with
(09:02):
credit card bills and when youpay them, it's a very nice
feeling once you've done that.
But the main thing is makingsure that you automate the
direct debit, because if you dothat, you don't think about it.
It just keeps coming out,obviously, with your own pay, if
you're on a higher income asopposed to a lower income, you
may have to adjust it dependingon what you want to do, but at
(09:23):
the end of the day, if you areone of those individuals who get
stressed in December forChristmas, highly recommend
doing this.
Even if you start at $20 or $30a week, just automate the
deposits and start seeing yourbalance rise up over time and
start seeing as well your stressdecrease when we're getting to
(09:44):
the end of the year.
Some other proactive tips forstaying debt-free.
Number one create a holidaybudget and stick to it.
So my previous episode I spokeabout how budgeting is such an
important tool and how Iactually used it when I started
out, kind of focusing more on mypersonal finance.
I still do today, especiallywith holidays.
Set your budget, set your limit, figure out how much you will
(10:06):
spend on gifts, food, you knowdecorations and events, and then
include some limits for eachcategory so you're not
overspending when you can'tafford it because that's a
important one.
You might go to the bar andyour friends are spending all
this money on drinks and youfeel like you may have to you
know, continue and mirror themand keep spending money as well,
but the end of the day, theydon't know if you have money or
(10:29):
not.
So if you know, you're the onlyone who knows that.
So if you know you can't affordit, don't do it.
It's as simple as that.
Bite the bullet, don't do it.
Or socialize doing somethingfree of charge, like go for a
run, go to the gym depending onwhat gym you are it could be an
outdoor workout, or just go geta coffee for $3.
There's so many differentoptions as to overspending.
(10:51):
When you socialize, look atembracing thoughtful and
low-cost alternatives.
Maybe it's time to shift thefocus from expensive gifts to
just meaningful gestures.
So this may include handmadeitems, different experiences or
a time coupon offering a skillor service you can provide For
example, you might think you'rea really good masseuse a skill
(11:14):
or service you can provide.
For example, you might thinkyou're a really good masseuse.
You might want to make a littlevoucher to your siblings or
your friends that you'll givethem a 60-minute massage.
Who knows Something as simpleas that?
Number three you may want tohost a potluck-style gathering.
So instead of footing theentire bill for holiday meals
and actually hosting people forChristmas Day and buying all the
food and everything, you maywant to make it a collaborative
(11:35):
event.
Get guests to bring drinks anddishes and different types of
things that you may wantDesserts, someone might be good
on the salad, someone might begood on meat Typical
diversification diversify withyour guests so this will ease
the financial burden.
I myself, I know that ourfamily's done that for the last
10, 15 years anyway, but forthose who don't actually do that
(11:58):
and someone footing the entirebill themselves, this is an
extremely important one.
Number four use cash or debit,never credit.
Especially in the holidayperiod, you're a bit more
emotional with your spendingbecause in the back of your mind
you've realized it's Christmastime, you might have the Boxing
Day sales and you might have theBlack Friday sales.
(12:19):
Not sure, I think that's before, but you've got all these sales
coming and obviously, when youget ads pop up on your Facebook
feed, on your phone, going outin public, you're thinking, oh,
I can save $400 on this.
The thing is, if you don't buyit, you save the whole amount.
Don't use your credit card,because that's where the
(12:40):
mistakes happen and, as you'veseen, many individuals are still
paying off their debt from theyear before.
So stick to cash or debit cardsto stay within your means.
But if you do have to use yourcredit card, like I know some
cases, people have to use creditcards based on pay cycles or
things that are happening, whichis fine Only if you can pay it
(13:01):
off as soon as possible orwithin a week to avoid any
interest charges, because, as weall know, credit cards can
absolutely wreck you withinterest charges, especially if
you don't pay it, and good luckgetting out of them, because
they make it pretty tough.
Last point, number five trackyour spending in real time.
So this goes back to thebudgeting in point one.
But use budgeting apps or evena simple spreadsheet to keep
(13:26):
tabs on your expenses as theyhappen.
So with the budgeting for pointone, you may just wanna pop in
rough numbers of what you canactually spend on, based on your
income per week or per month.
But with this point, what thisis saying is, now that you
actually have spent the money,you've got to keep tracking and
(13:46):
adding to the budget at livetime.
So if you've gone out and justspent $200 on let's just use,
for an example, a nice shirtSoon, as you get home you have
to add that to your budget andsee how much you have left.
You may only have $20 left oryou might have gone over by $50.
And then you're going to haveto take 50 off for another
(14:06):
category and reduce that.
So keep tabs on expenses as theyhappen, because that is so
important.
Without doing that, a budget isliterally irrelevant.
And the most important thingwith tracking your spending in
real time is seeing yourspending in black and white
literally helps you stayaccountable.
It's as simple as that.
You can't spend more than youearn because otherwise you're
(14:26):
going in debt, and that's a badplace to be, as we know,
especially with the Christmastime and holiday season.
So that is probably the mostimportant, I guess, for the
actual holiday season.
All it is.
It's so simple, it's a simplemindset.
Shift Everything in life.
You can just shift it with yourmindset.
You just gotta ask yourself adifferent way.
For this example, I want you toask yourself what is more
(14:51):
important to you Short-termsatisfaction or long-term
financial freedom?
True spirit of the holidaysisn't about the flashy gifts or
the extravagant meals.
It's about gratitude,connection, making memories and
having fun with friends andfamily.
Are you more aligned with yourshort-term satisfaction of
(15:13):
wanting to buy the latest Appleor Samsung or something which
makes you happy for the couplemonths and then you're over it?
Or are you wanting thelong-term financial freedom?
So actually automating yoursavings so that when December
comes around this year, you'reset, you are ready to go, you
don't have to stress.
You go straight out to theshopping center in Melbourne.
(15:34):
You'd be going to Chadston,like I do for myself, and you've
got your money, your spendingand, worst case scenario, you
may need to spend a little bitmore of your own money which you
have in your bank account notthat you've saved up for, but
it's not going to be as much asyou would have had to the year
before or go into debt.
Ask yourself that question notgoing to be as much as you would
have had to the year before orgo into debt?
(15:56):
Ask yourself that question.
Imagine starting January withzero holiday debt no credit card
bills, no financial hangover,just a fresh start.
It'll feel extremely, extremelyfresh.
By planning ahead, treatingChristmas as a year-long expense
and automating your savings,that vision can literally become
a reality.
And if you've never experiencedthat before, please make sure
(16:19):
that next Christmas it comesaround.
Put that first.
Make that your priority.
Don't let the holidays dictateyour financial future.
Take control and enjoy theseason for what it truly is.
We hope you enjoyed the episode.
As always, we know exactly whatto do.
Hit that follow button,subscribe, whatever platform you
listen to this podcast on.
Also share it to friends,family, co-workers, whoever you
(16:43):
think may benefit from it.
But unfortunately, that's theend and we'll see you next week.
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