Avoid A New Year Spending Hangover



Excessive credit card usage is typically highest in December – only for us to then be hit with a very scary statement in January. Not a great financial start to the new year!

Here are some simple tips to avoid a new year spending hangover. If you take action now to limit your spending, you may also protect your credit score in the process.

Start out on the right track this year with a simple festive season budget for individual gifts, food and drinks for entertaining. And maybe a summer holiday? Don’t forget to factor in the cost of extra school holiday activities to keep the kids amused (eg trips to the movies).

Next, work out where the money is coming from. If you know you won’t have enough saved in time, then change your budget now! At all costs try to avoid putting it all on your credit card at the last minute.

If you celebrate the festive season with gifts:

  • Suggest your family only give gifts to children this year.
  • Try Kris Kringle or set a small price limit on gifts for everyone.
  • Give family members your time instead of a tangible gift (eg a voucher for an hour of gardening or overnight babysitting).

Some great money saving ideas:

  • Make a list before you go shopping – and stick to it!
  • Homemade biscuits and treats are an inexpensive gift for children’s teachers, work colleagues etc.
  • Shop around for the best deals on Christmas food. Try not to over cater. While left over ham, wine and cheese might be nice for lunch on Boxing Day, it’s an expensive indulgence for the rest of the week (and the residue often ends up getting thrown away).


I love this time of year! Why does it matter?

If you are keen to kick some new financial goals next year it’s difficult when you’re still paying dearly for last year’s expenses.