Smart ways to stretch your pay this holiday season

The festive season is here and while it’s a time for joy, celebrations and giving, it can also put a strain on your wallet. Between gifts, travel and social events, December and January often come with extra expenses that can feel overwhelming.

However, you don’t need to cancel Christmas to stay financially healthy. With a few strategic moves, you can make your pay go further without sacrificing the holiday spirit.

Here are some practical ways to stretch your pay this holiday season.

#1 Set a realistic holiday budget (and actually stick to it)

Before you start shopping or booking trips, take a moment to map out all your holiday expenses. List everything, such as gifts, decorations, travel and dining out. Put them into logical categories and assign a spending limit for each.

Once you have a number for each category, track your spending. Whether you use a spreadsheet, a budgeting app, or the envelope method (where you put cash in envelopes for each category), seeing where your money goes in real-time helps you pump the brakes before you overspend.

#2 Shop smarter, not harder

Retailers are experts at separating you from your money during the holidays. To stretch your pay, you need to be a smarter shopper.  

• Use cashback apps: before you checkout online, activate cashback offers. Small percentages add up over a season of spending. 

• Get discounted gift cards: retailers sometimes offer discounts on gift cards, which you could then use to do your shopping or use as presents. If you’re an eligible Smart customer, you could get discounts on gift cards from major retailers with Smartrewards^.  

• Hunt for discount codes: never pay full price for shipping or items without a quick search for a promo code.  

• Buy in bulk: consider buying gifts in bulk, which could save you costs like delivery fees if you reach certain thresholds.  

• Buy second-hand: vintage and thrift shopping are trendy for a reason. You can often find unique, high-quality gifts for a fraction of the retail price.  

#3 Optimise your income with salary packaging 

Here’s a tip some people overlook – salary packaging. If your employer offers this benefit, it could be a game-changer for your finances, not just during the holidays, but all year round.  

Salary packaging lets you pay for certain expenses with pre-tax dollars, reducing your taxable income and increasing your take-home pay.

Benefits that may be able to be salary packaged include car expenses through a novated lease, work-related devices and potentially living costs such as mortgage or rent.  

What you can salary package depends on your employer and industry. To see if you’re eligible for salary packaging with Smart, you can do a quick check with our calculator.   

Imagine freeing up extra cash each pay cycle simply by restructuring how you pay for everyday expenses. That extra breathing room could make holiday spending far less stressful. 

#4 Embrace low-cost festive fun

Not every holiday activity needs to come with a hefty price tag. For instance, if you’re hosting a celebration, consider a potluck. It’s a fantastic way to share the burden. Ask guests to bring a side dish, a dessert or a drink. It makes the meal more diverse and could reduce your grocery bill.

Handmade items, shared experiences or small meaningful gestures often matter more than costly presents.

Consider baking something homemade, writing a personalised note or doing a family Secret Santa to reduce the number of gifts needed.

#5 Review subscriptions

The holiday season is a great time to audit your monthly subscriptions. Streaming services, memberships and app subscriptions can quietly drain your bank account if you’re not actively using them.

Take a few minutes to review your bank statements and identify subscriptions you can pause or cancel. Even temporarily cutting back on these expenses can free up extra cash for holiday spending.