100 days till Christmas: Savings hacks to reduce financial stress this festive season

Planning for Christmas 100 days out from the big event might seem like overkill, but it’s the ultimate hack to avoid last-minute chaos and festive season debt.

Spreading your purchases over the next three months, instead of cramming them all into the week before the big day, can be a game-changer that turns the silly season into a stress-free countdown.

Here’s how to make Christmas gifting all things nice, without so much as a hint of credit card spice.

Step 1: Make a list and check it twice

Make a list of everything you’ll need to buy. Gifts are obviously high on the list, but don’t stop there. Include food, drinks, decorations, cards and even travel. Organise your list so that you can track your spending against your budget to avoid a blow out.

Step 2: Share the gifting

Secret Santa is a great way to drastically reduce your shopping list and ensure you’re giving (and receiving) decent gifts. Having just one person to buy for amongst each group of family and friends, means you can swap a bunch of cheap, forgettable gifts for a handful of thoughtful ones.

Step 3: Create a realistic budget

Once you have your shopping list, allocate a specific dollar amount to each category and add it all up. Don’t be shocked by the total–this is just a starting point. This exercise helps you see the full picture and identify areas where you might need to trim back.

Step 3: Start filling your savings sack

Work out how much you’ll need to save each week by dividing your total budget by the number of weeks left until Christmas. Set that amount aside each week in a safe but accessible place. A high-interest savings account is a great option for savings–just make sure withdrawals won’t cost you bonus interest every time you buy something on your list. If they do, find an account with no strings attached so you qualify for the maximum rate each month. A separate savings account dedicated to Christmas spending can be useful to stop you raiding it for other expenses. Alternatively, home loan borrowers can put that money in their offset account so it’s helping to offset their interest bill between now and when you spend it.

Step 5: Sleigh the sales

There’s been a noticeable shift in Australians’ Christmas shopping habits in recent years, with many starting earlier to snap up bargains during pre-holiday sales.

The key sales dates to watch out for are:

• Click Frenzy: November 11
• Black Friday: November 28
• Cyber Monday: December 1

These sales kick off in November, but last year, many retailers started even earlier, giving you more time to get ahead of your shopping list.

Use browser extensions and apps to track prices throughout the sales period, compare offers across retailers and ensure the sale price you’re seeing is a genuine bargain.

Step 6: Add a dash of creativity

Australians have billions of reward points banked up from credit cards, grocery programs, and frequent flyer schemes. If you’re strapped for cash, consider cashing in rewards points for gifts or gift cards. While on paper redeeming points for gift cards might not deliver the best value for money, if it means a stress-free and debt-free Christmas, it might be one of the best Christmas transactions you make.

Step 7: Avoid the ghost of Christmas past

Christmas is called the silly season for a reason, but the long-term sting of putting purchases on the credit card when you don’t have the money to pay the debt back can leave you with a financial hangover that sticks with you well into the New Year. Understand how many interest-free days you have on your credit card and make certain you can pay the full amount owing on your card before the merry-go-round stops.