With the scent of summer barbecues wafting in the air, many Australians are starting to dream of their much-loved Christmas celebrations. But amidst the joys of beach outings and family gatherings, the financial weight of mortgages and festive spending can sometimes cast a shadow over the holiday spirit. Here’s your guide to planning ahead, so you can truly revel in the festivities without the financial stress.

1. The Early Bird Gets the Worm

Begin your holiday preparations in October or November. Just like planning your summer getaways, give thought to your December mortgage payment. By setting aside a small portion of your income earlier in the year, you’ll have a neat sum by December to ease the mortgage pressure.

2. Refinance and Review

Interest rates are constantly fluctuating. With the end of the year approaching, it’s the perfect time to review your mortgage. Consult with your mortgage broker to see if there’s a better deal out there. Refinancing could free up some funds for the festive season or help you pay off your mortgage quicker.

3. Go for a Mortgage Holiday (But Be Wise!)

Some lenders offer a ‘mortgage holiday’, where you can defer your mortgage payments for a short period. This might seem enticing around Christmas time, but remember, interest usually continues to accrue. So, use it judiciously if you’re considering this option.

4. Fortnightly Payments

Instead of monthly payments, switch to fortnightly. By doing so, you’re effectively making an extra month’s repayment each year. This trick can shave years off your mortgage and reduce the amount of interest you pay in the long run. Come Christmas, you’ll have some breathing room knowing you’re ahead.

5. The Festive Budget

Allocate a specific amount for festive spending. Whether it’s for gifts, food, or decorations, stick to your budget. You’d be surprised at how much you can save with a bit of discipline, ensuring you don’t dip into the funds reserved for your mortgage.

6. DIY and Handmade Gifts

Embrace the true spirit of Christmas. Instead of splurging on expensive store-bought gifts, get creative. Handmade gifts not only save money but add a personal touch, making them much more meaningful.

7. Plan for the Next Year

Once this Christmas is over, start planning for the next one! Set up a dedicated savings account and automate a small transfer after each payday. By the time the next festive season rolls around, you’ll have a cushion to fall back on.

8. Stay Updated on Grants and Concessions

Australia has several grants and concessions, especially for first-time homeowners. Staying informed can mean potential savings or benefits you can channel towards your festive preparations.

Christmas is a time for joy and celebration, and with some planning, you can ensure financial worries don’t dampen your festive spirit. Cheers to a stress-free, merry holiday season ahead!