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How to plan your Christmas spending for a happy New Year

As Christmas and New Year roll around, it is easy to get caught up in buying presents, Christmas lunches and a lot more. When the bills come in January, however, they may foretell a bleak start to the new year. By planning ahead, you can enjoy your holidays and have a joyous new year too.

As Christmas and New Year roll around, it is easy to get caught up in buying presents, Christmas lunches and a lot more. When the bills come in January, however, they may foretell a bleak start to the new year. By planning ahead, you can enjoy your holidays and have a joyous new year too.

SET A BUDGET

Even though consumers plan to spend slightly less on Christmas shopping this year than last year, according to the 2016 UOB year-end gift-giving survey, they still plan to spend S$668. Go online, look at Facebook, walk down Orchard Road or even read a newspaper and you will see plenty of promotions urging you to spend far more than that.

Before you go out and spend so much money, though, it is important to plan and set a budget. “Singaporeans buy way too many gifts for way too many people,” SingSaver content manager Lauren Dado opined, so even though it is the season of giving and receiving, “you can save money by being selective about who you buy presents for”.

A good place to start is managing expectations. For families, a trend which has gained traction over the past few years is the “four-gift rule”, whereby parents pledge to give their children just four presents: Something they want, something they need, something to wear and something to read.

Another alternative is to talk to friends and family about setting a spending cap per gift. Larger families sometimes set up a list for each person to buy gifts for only one or two other family members rather than for everyone.

Once you decide how to select gifts, and how many, you can make a list of what to buy for each person.

To keep on track, a Christmas shopping app may help. Santa’s Bag on iOS, for instance, which has tools for budgeting, allocating gifts, and keeping track of present ideas and shopping lists. Android users can download Free Christmas List, which similarly helps to track gifts by person, set budgets, check off each gift you purchase and make notes.

When you do go shopping, the Australian Securities and Investments Commission (ASIC) suggests buying less expensive gifts first. “If you buy larger and more costly items first,” it said, “you can lose perspective on what is a good price. Set your budget, buy small first, and then tackle the big stuff so you keep to your gift budget.” You can also set a time limit so that you get in and out before you are tempted to spend too much. Along with planning your budget and gifts, you can also use digital tools to save money.

Before you start shopping, search the web to compare prices as well as to look for discounts or coupons. Look at the sales sections of retailers’ websites, too, to see what they are offering and when they will have sales. Shopping online can sometimes save money too, though you need to make sure you leave enough time for delivery,

You can also use apps to look for deals. DEALert lets you know when there are deals and Groupon sends daily specials, for instance, or you can sign up with specific retailers for alerts about special sales.

Christmas and the festive season can, though, be about more than just giving presents that you bought in the store. As Ms Dado said: “It’s easy to lose sight of the fact that Christmas is about people, not gifts. Just as shared experiences make relationships last, so does quality time together matter more to your loved ones. The best gift you can give is to spend more time with your families and close friends.” DBS similarly said that Christmas is for sharing moments together.

One option is to give handmade gifts or experiences rather than buy things. The National Library, for example, has “5 DIY Christmas gifts for those on a Budget” on its website, www.nlb.gov.sg/discovereads/2015/12/02/5-diy-christmas-gifts-for-those-on-a-budget. Instagram coasters are very easy to make and can look amazing, while a personalised journal lets your family remember you every time they write down their thoughts.

The ASIC suggests giving coupons that family or friends can redeem later for an experience such as a picnic, a driving tour, a dinner date, a home-cooked meal or even hugs.

GIVE YOURSELF A GIFT

By stopping to plan before starting to shop, we can make sure we give gifts that really matter yet keep spending within our budgets. January will be far more pleasant, as you will not be overwhelmed by paying for gifts that some people may no longer even remember. If you want to get a jump on planning for 2017, you might consider giving yourself a gift of a free online course on FutureLearn called “Managing My Money” starting in January that provides insights on budgeting and spending.

Most important, remember the true meaning of Christmas and look forward to a year of peace on earth, goodwill to all. Merry Christmas.

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