While Christmas for many is a time of fun, food, and family, for others it can be a huge source of stress. Many New Zealanders feel the added financial and social burden at this time of year, with mounting debt adding to already overstretched budgets and gift giving pressure. If festive thoughts are getting you down, here are 3 tips to help reduce stress for a stress-less Christmas holiday.

1.    Set a spending limit

Money concerns is one of the leading causes of holiday stress, with over half of Kiwis feeling stressed out about the additional expense at this time of year. The high cost of living combined with higher interest rates has pushed some household budgets to near-breaking point, and many Kiwis will be concerned about managing their finances this Christmas time.

Gift giving, entertaining and travel can fuel overspending and create a financial burden that lasts well into the new year. Even the savviest Christmas shoppers can get caught out and go over budget. To limit financial stress:

• Set a budget and ensure all of your usual monthly expenses are taken care of before you plan any holiday spending.
• Make considered financial decisions, one at a time, to avoid feeling overwhelmed as that’s when you’re more likely to overspend.
• Avoid temptation as much as possible by limiting the amount of time you spend at the shopping malls to help curb your spending.
• Use cash or debit cards not credit cards to manage impulsive purchases, so you only spend what you have.

 2. Manage expectations

At this time year, we’re constantly being bombarded by advertising for the latest tech toys, games and gadgets, enticing images of expensive festive foods, and Christmas trees laden with extravagant gifts.

For those who may be struggling financially, already unable to meet everyday expenses, Christmas is just another day to get through. The reality of a tight budget can look quite different to the joy, excitement and seasonal good cheer that Christmas promises.

Being realistic about your circumstances and managing expectations can help reduce stress and help manage stress levels:

• Be honest about your financial situation with friends and family, and let them know if you can’t afford to do gift exchanges or expensive entertaining.
• Agree to a maximum spend limit and budget to spend an amount you can realistically afford.
• Cut back on other expenses if you can in the first half of December to help put a little extra aside for Christmas.
• Help children and younger family members understand the situation and be realistic about expectations. 

3. Get into the Christmas spirit

In the mad panic leading up to Christmas, it’s easy to forget what the festive season is all about. Instead of focusing on Christmas shopping and buying expensive gifts, find time to enjoy the people around you and make some time for you.

Go for a walk, meditate, sit in the garden. Put your phone away and have a real conversation. Play outside with the kids. Take the dog for a walk. Whatever it takes for you to slow down and just breathe. Remember, Christmas is not about expensive gifts or lavish entertaining, so try to focus on what’s really important.

Set yourself up for a financially solid 2023, start planning today. Contact a Mortgage Express branded mortgage adviser to get financial advice that is tailored to your unique situation.