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3 tips to spring clean your finances before Christmas

Sebastian Bowen

Well, spring has sprung and (almost) gone and we are now just 3 days from summer starting. Along with all the joys that the hot months bring, it might be a good time to reflect on your finances, especially since Christmas is now just around the corner – with all of the financial pain that can come with it.

So in the spirit of summer, here are 3 spring cleaning tips for your finances that may just help you to have a slightly merrier Christmas.

Put the credit cards away

Christmas is known for a healthy bit of excess, but it’s important to keep your eyes on your family’s spending this holiday season. Putting too much on the credit cards can be a sure-fire way to ruin what should be a happy and fulfilling time of the year.

By planning ahead this December and estimating how much you can (and should) spend for the month, you can avoid having to pull out the credit card. The last thing you want on boxing day is a pile of high-interest debt next to the wrapping paper.

Don’t try and keep up with the Joneses

All too often, expensive things that you don’t really need are purchased under the cover of Christmas. If your neighbours have a flashy boat, Christmas is not a great excuse to buy a bigger one (unless boating or fishing is your life’s purpose, of course). Building wealth (and keeping it over Christmas) is all about not buying things you can’t afford and don’t really need – so don’t waste a year of hard work over an impulsive Christmas mistake.

Keep the Christmas spirit in mind

No matter what Christmas ads you might see from the likes of Woolworths Group Ltd (ASX: WOW) or JB Hi-fi Ltd (ASX: JBH), the 25th of December is all about sharing a holiday, good times and good food and drink with those you care about.

Heartfelt or even homemade presents can show just as much love (or even more) than expensive brand-new electronics or the latest ‘smart home’ gadget. So remember what Christmas is actually about and don’t get sucked into too much commercialisation this holiday season.

Foolish takeaway

Christmas is a joyous time of year, but it can also turn into a financially ruinous season if you’re not careful. Thus, I think these 3 tips are well worth keeping in mind with December just around the corner. Happy Summer!

The post 3 tips to spring clean your finances before Christmas appeared first on Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019