We always want our clients to start 2025 better off than the year before, and that includes free from the burden of excessive credit card or BNPL debt built up over Christmas time.

This year has been a squeeze, and many people are rethinking their priorities and expectations around Christmas and holiday giving. While spending less or spending differently might not be everyone's cup of 'nog', it could be a better alternative to being stuck with bad debt for items that might be stuffed in a cupboard or in the landfill in a month's time!

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Time to Spend It Differently?

Rather than stressing over presents, overspending, relying on AfterPay, buying more plastic, or getting stuck in traffic or the mall for hours, consider our team's suggestions for some thoughtful and meaningful gifts.

No matter your budget, whether you are on a cost-of-livin' shoestring, saving for a house, or sick of just buying "stuff" and wanting to do something more meaningful with your money, there may be some ideas in here you haven't considered yet.

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Presents for Others

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• Start a KiwiSaver fund for the kids. Buy them less "stuff' and add KiwiSaver money every Christmas. Thanks to compound interest it's literally a gift that keeps on giving. Simon.
• For spouses, instead of exchanging expensive gifts, make a deal to do small regular contributions to top up your mortgage. Makes sense right? James.
• In our family we make Christmas day a massive potluck and only buy one Secret Santa gift each, rather than something for everyone. Set a spending limit based on the person with the smallest discretionary spend/budget so that it is affordable for everyone. Becs.
• My kids love the gift of my time. Spend one-on-one time with a loved one doing something together. If you have a skill like photography, cake making, or mechanic skills, share that instead. It's personal and meaningful. Shona.
• How about a managed fund for the kids? Add money for Christmas and birthdays. They'll thank you later when they need it (Uni, car, house, OE, etc). Elizabeth.
• Have an "Abundance" swap. Give away one nice item you have but don't really need. It's a great way to share the love. Taz.
• Take out life insurance for yourself to protect your family in case anything happens. Probably the best gift you could actually give. Lance.
• Even better, have an insurance review to make sure your family's risk is minimized!! Brendon.
• Get into barbecues and beach days. Bring a plate, take photos, and print them. Photos are cheap and it's the memories that actually really matter. Suz.
• Sort a will, even a simple one, to protect your assets and family when you die. Can be done pretty quickly. Graham.
• If you have some good gear lying around that you are not using you could sell it and use the cash for presents, or gift it directly. You can also shop Trade Me and Marketplace for quality second hand gear if you don't want to pay top dollar for brand new. This is great for kid's outdoor stuff for example. Tully.
• Shop sales, check out PriceSpy to compare deals and shop with cash if you can. It is so easy to blow the budget on credit!! Sarah.

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‍Presents (for Yourself!)

Don't forget yourself this holiday. There are some positive things you can do with your money that will help your future self to be better off too. Now we know it may not be as exciting as those new shoes you've been lusting over, however long after those shoes have hit the landfill, you will be laughing all the way to the bank with some of the below ideas.

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• Treat yourself to health insurance for 2025. Skip the long queues in the health system and get VIP specialist treatment. You're worth it. Manisha.
• This is hard but pay off your bad debt instead of buying more stuff with it! Tackle some of your credit card or after pay debt and get rid of it if you can. Bella
• Book yourself a free KiwiSaver check-up. Make sure your money is working hard for your first home or retirement fund. Giovana.
• Start your emergency fund. Instead of splurging on heaps of fast fashion for summer, pop that money into an emergency savings account and watch it grow. Alice.
• Consolidate your debt into one lower interest loan and save yourself some money. It's a great way to simplify repayments and save on interest. Tania.
• Do some financial planning for the future. Make sure you know your number to hit your retirement goal. It's never too early to start planning. Dean.
• Chat with our team to see if your home, content, business, or vehicle insurance is fit for purpose and if you're paying the right amounts in 2025. It's always good to review. Joshua.

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One more thing....

If you're finding it hard to make ends meet this Christmas, be honest and ask for help. Try to avoid making things worse by getting stuck in a negative buy now, pay later cycle. Many Kiwis are experiencing the pinch this year and it may just be that Christmas plans, budgets and expectations have to adjust! Forget feeling embarrassed. Find a way to work together to find ways to reduce holiday expenses and still enjoy the festive season.

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Meri Kirihimete,

The VF Team 💚

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Always get professional advice

The information shared in this post is meant to be general guide to support you on your journey. When making important decisions about your finances, we encourage you to seek independent financial advice first, tailored to your unique situation.  As well as talking with a financial adviser, make sure you talk to your lawyer and accountant too – together they'll help you find the best solution for your specific situation. Our knowledgeable financial advisers are here to help. Check out our website for the details about our financial advisory services in our disclosures: https://www.velocityfinancial.co.nz/disclosure-statement.

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