Trying to make ends meet this Christmas? Well, spare a thought for Santa… – our top 5 money saving tips

Well it’s nearly here!  Many work place Christmas parties are in full swing and the big guy up there at the North Pole is probably polishing his boots and picking up his best red suit from the dry cleaners.  He’s probably also had the sleigh in for its annual service and overhaul, re-shod the reindeers and paid his insurance and rego on the sleigh.  Don’t even get us started on the issues he must be wrestling with to reduce his carbon foot print and the future impact of the carbon tax on delivery of raw materials to the North Pole and the price of reindeer food…

Santa’s operation became globalized long before anybody else’s and he does a truly great job of keeping it up to date and relevant.  He probably has also had to install a new GPS system to make the deliveries easier (lets face it, it must get harder for the big guy every year) and invest capital in updated plant, machinery and computerised inventory tracking system to allow the elves to keep manufacturing on time and error free – after all, Santa undoubtedly has the best quality rating in the universe.  The overtime bill for the elves has got to be just horrific yet, despite the fact Santa’s operation must be a bank manager’s nightmare and Santa himself isn’t getting any younger, somehow he manages to continue to hitch up the reindeer and put presents under the tree every year.

Thinking about the costs and logistics faced by poor old Santa, brings it a bit closer to home in that, regardless of what you believe, Christmas is a time when many of us like to give gifts, take a few days off, relax with family and friends and reflect on the year which is closing.  It’s a great time of year but many of these things cost money and some of us find ourselves in a frenzy at the last minute, racing around buying presents and spending money on things which perhaps we haven’t really thought about carefully and which we or the recipients don’t really need.  Many people make these purchases on credit, and while credit can be a useful tool when used carefully and paid back on time, high interest rates on credit cards and consumer debt mean that repayment can cause some pain and stress well into the new year and sometimes the ones after…..

We thought we’d offer some suggestions to help with the expense in this period:

1. Set a careful budget – if you only have a finite amount to spend, exceeding your limits can be a recipe for disaster.  It’s often amazing how far your money can go with careful planning
2. Don’t be afraid to suggest to family members that you could club funds together to buy larger or other more expensive items – this way everybody has a lower individual outlay and the recipient still receives a great gift they really like.
3. Don’t be afraid to question the price of things, particularly big ticket items and enquire about discounts for paying in cash (cash is after all, the best way to stick to a budget) or for bundling purchases together at the one store.  The worst answer you can receive is “no” but a lot of businesses are doing it tough right now and many will be keen to meet you part way to pick up sale of an extra item by discounting the price on large or multiple purchases
4. Secret Santa or ‘Kris Kringle’ is a concept often associated with the workplace but many families take this a step further particularly for extended family groups with each member buying a gift for one family member on behalf of the group.  This way everyone receives a well chosen gift on the day, no one gets a heap of junk they don’t need but best of all, everyone saves money
5. If you’re buying things for yourself try and wait till the post Christmas sales.  Again, many businesses are struggling and the Boxing Day sales can be a great way to scoop a bargain at a fraction of the pre Christmas day price tag.

We at iGenWealth would like to thank all our readers and subscribers as our first year draws to a close.  We wish you a happy Christmas and a safe and prosperous new year and remember, despite all the issues Santa faces in a struggling global economy, he’s just never ever going to take his eye off the ball.  He’ll be watching each and every one of us to see whether we’ve been naughty or nice so hopefully, you’ve been good this year!

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By Dean Johnson