Six tips to save you from a financial hangover this Christmas

It may be the most wonderful time of the year, but Christmas, which is just around the corner, can also be the most expensive for many of us.

Yes, there are the obvious expenses: presents, catering, travel expenses. But there are also a million other little hidden costs that are so easy to forget about, and that can quickly amount to a very unhappy credit card bill or hit to the savings account come January 1.

Once you tally up the cost of presents, lunch, travel and alcohol, Christmas quickly gets expensive.Credit: iStock

And that, my friends, is no way to start a new year. Thankfully, much of this problem is avoidable. Enter the unique monthly budget.

If you’re not already doing a unique budget for every month, don’t worry – new habits are easy to start, even at the end of the year. The benefits of doing a unique budget for every month are many, and the downsides are zero. If you are already creating and updating a monthly budget, gold star!

Whichever camp you fall into, here are some unique December considerations to add.

1. Prioritise the basics. Whether it’s April or December, the first and most important things to budget for are your essentials: mortgage repayments or rent, car loans or other loan repayments, public transport or petrol costs, groceries, and any other committed expenses such as gym memberships, subscription services, insurances, utility bills and registrations.

If you’re trying to save or find extra money this month, giving up the party punch is an obvious option.

Once all of these are considered, you’ll know how much you have left over (MoneySmart has a........

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