The Holiday period is an exciting time for everybody, as families and friends are reunited through a time of love, cheer and gift giving. For many, the Christmas and New Year period is a time to switch their minds off and relax under the summers sun.
While the opportunity to spend time with your loved ones in a stress-free environment is encouraged, it is also important for people to keep an eye on their budgeting during the summer season. A study produced by Hospitality New Zealand shows that people are likely to spend more over the Christmas/New year period. The weather encourages more purchases of food and beverages, there are Christmas gifts that fill up space under the tree as well as the holiday's many kiwi families participate in over this period, whether it be domestically or internationally.
An article released by Statistics New Zealand recorded a rise in spending on accommodation, bars, cafes and restaurants by 1.2% in January 2018 compared to the other months of the previous year. In 2015 electronic card spending rose 0.4% in December followed by a greater increase to 0.6% in January 2016.
While it is easy to get caught up in the spirit of the holidays, keeping an eye on your expenditure during your time off can ultimately help you with the rollover into the New Year.
Many people choose to plan a larger budget during this summer season however, it is still important to make sure you do not get too caught up in the moment creating a tenuous financial situation that will need resolving after the holiday has passed and ordinary life resumes.
This summer before making any large financial decisions make sure to ask yourself;
1. Is this purchase a want or a need?
2. Is this worth putting myself through financial stress in the New Year?
3. Am I able to find a more cost-efficient way to go about this purchase?
In the long run, you will find yourself thankful that you applied the extra thought during this time to ensure you do not begin 2019 with a financial hangover.