Jacqueline Barton

Celebrate the festive season without financial stress

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The festive season can be a time of joy, connection and celebration. But it’s also a season that can put real pressure on household budgets. Australians spent $30 billion on Christmas in 2024, a 10% increase from the previous year, with the average Australian spending $1,479 on presents, food, alcohol, eating out and travel.

The good news? You don’t need to choose between enjoying the festive season and maintaining financial stability. With some thoughtful planning and practical strategies, you can create memorable celebrations, without the January financial hangover.

Start with a realistic budget

The foundation of stress-free spending is knowing what you can afford. While 32% of Australians intended to stick closely to a holiday budget in 2024, up from 23% the previous year, setting a budget is only half the battle – sticking to it is what matters.

Begin by listing all your Christmas expenses, including gifts, food, decorations, travel, and social events. Be honest about what you can comfortably spend without compromising your essential bills or savings.

Shop smart, not last-minute

Timing matters when it comes to Christmas shopping. More than one in four Australians (26%) plan to shop during Black Friday sales to save money, while 25% start buying food and presents early to help control spending. A majority of shoppers (53%) had already purchased gifts by mid-October 2024, demonstrating a trend toward earlier, more deliberate purchasing decisions.

Australians spent a record $6.7 billion during the four days of Black Friday and Cyber Monday sales—an increase of 5.5% compared to the previous year. If you’re planning to shop during these sales periods, go in with a clear list to spot genuine bargains without overspending on unnecessary items.

Don’t overlook loyalty programs and reward points you may have accumulated throughout the year. These can help reduce your out-of-pocket expenses without requiring any additional spending.

Rethink gift-giving traditions

Gift-giving doesn’t have to mean individual presents for everyone. Almost one in five Australians (18%) implement a gift-giving limit with loved ones to help manage costs. Consider Secret Santa arrangements with a set budget, pooled gifts where family members contribute to one larger present, or experience-based gifts such as offering your time or skills.

Manage the food budget

Australians spent a projected $28 billion on festive food in 2024, an increase of 4.2% on the previous year. Planning your menu in detail helps you avoid over-catering and food waste. Consider dividing up responsibilities so each person or household brings a specific dish or course.

Starting to buy non-perishable items early spreads the cost and takes advantage of specials you encounter along the way.

Set boundaries and avoid the credit trap

From office parties to catch-ups with friends, the festive season brings multiple opportunities to spend. It’s perfectly acceptable to be selective about which events you attend. Consider inviting fewer people to events as a tactic to lessen the financial impact.

Choose your payment method before you start shopping and stick to it. Using cash or debit cards wherever possible helps you avoid debt that carries into the new year. Have you considered starting a side hustle or taking on a second job to help tackle end-of-year expenses?

Remember what matters most

More than two-thirds of Australians (69%) are slashing their spending to get the most out of their festive dollar, showing a collective shift toward more mindful celebration. The festive season is fundamentally about connection, not consumption.

The most meaningful celebrations often come from time spent together rather than money spent on things. Planning, setting realistic limits, and making conscious choices about where your money goes help you enjoy the festive season on your terms. Your future self will thank you for the thoughtfulness you showed today.

Source: Finder Christmas Spending Survey 2024, Fifth Quadrant Consumer Insights Tracker 2024, Roy Morgan/Australian Retailers Association Christmas Spending Report 2024, Deloitte Retail Holiday Report 2025

Retirement isn’t what it used to be, and that’s great news for you

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If you’re approaching retirement and wondering whether you’ll be ready to stop working completely, you’re not alone. The reality is, retirement in Australia is changing, and it will likely look quite different from what your parents experienced.

Recent analysis by KPMG of the Australian Bureau of Statistics labour force survey data[1] shows that Australians are working longer than ever before. Men now expect to retire at 67, while women anticipate finishing work at 65.3 years. That’s up by more than two years for men and over a year for women in just the past decade.

But here’s what’s interesting: this isn’t just about the rising Age Pension age. There’s a growing group of older Australians who genuinely want to work well past traditional retirement age, and experts are calling them ‘ageless workers’.

Twenty years ago, only one in ten men was still working at the age of 70. Today, it’s one in four. Even among men in their late seventies, almost one in ten remains in the workforce. For women, the shift has been even more dramatic, with participation rates for those in their seventies nearly doubling over the past decade.

Why the change?

The nature of work itself has evolved. If you’re in a professional or office-based role, working into your seventies is much more feasible than it would be in physically demanding jobs. As KPMG Urban Economist Terry Rawnsley aptly put it: pulling out a laptop at 75 is considerably easier than laying bricks.

The pandemic also played a role. Many workers delayed retirement plans due to travel restrictions, and after ticking off their bucket-list adventures, they’ve returned to the workforce refreshed and engaged.

The rise of semi-retirement

Perhaps the most encouraging trend is what’s happening between full-time work and complete retirement. Most men now spend about 2.8 years in this transition phase, while women typically spend around three years.

This “semi-retirement” phase – working part-time with flexibility – offers the best of both worlds. You can supplement your retirement savings, maintain social connections, stay mentally engaged, and potentially help support your children or grandchildren, all while enjoying more freedom than full-time work allows.

The message? You don’t have to choose between all-or-nothing anymore. Many Australians are discovering that a gradual transition into retirement, on their terms, can lead to a more fulfilling and financially comfortable lifestyle.

Call us to find out how we can help you transition to your retirement on your terms.

[1] https://kpmg.com/au/en/media/media-releases/2025/09/retirement-age-rises-as-older-australians-keep-working.html

The impact of a variable rate home loan as interest rates change

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There were a series of interest rate increases, beginning in May 2022, and reaching its peak in November 2023. Rates then remained unchanged at 4.35% until the 0.25% cut in February 2025.

A recent study, Five Economic Themes That Will Dominate the Next Parliament, has revealed the consequences of the RBA interest rate hike cycle, with variable-rate mortgage holders having around $800 a month in additional repayments between mid-2022 and early 2024.

The research found that variable-rate mortgage holders paid $13,884 more in repayments than fixed-rate mortgage holders over the 18 months following interest rate rises.

This period of inflated interest rates placed immense strain on borrowers, especially those who were on a variable rate.

Despite the added strain, the study found that spending habits between fixed and variable rate mortgage borrowers hardly changed. 70% of borrowers funded the increases in mortgage repayments using savings. Just 26% had paid for the increased mortgage repayments with additional income streams.

The rate hike cycle also limited the number of people making excess mortgage repayments.

The research revealed that 70% of variable-rate borrowers made excess mortgage repayments before the rate hike cycle. As of the end of the study in April 2024, this dropped to around 25%.

The fluctuations in interest rates demonstrate the importance of establishing and maintaining an emergency fund buffer as an integral component of your strategic financial planning.

If you have not recently considered the impact of interest rate movements on your home loan, and your overall financial position, perhaps it’s time to reach out for a chat.

Investing in rare earth requires patience and perspective

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Few investment sectors combine geopolitical intrigue, technological innovation and long-term growth potential quite like rare earth elements (REEs).

For Australians, the recent deal with the United States to supply rare earths to seed US$8.5 billion worth of new projects, has thrust the sector into the spotlight.i

What are rare earths?

Rare earth elements are a group of 17 metallic elements that, despite the name, are not particularly rare but are difficult and costly to refine. Their unique properties are essential in the powerful magnets that drive electronic devices such as headphones, speakers and computers, wind turbine generators, electric vehicles and medical technology such as magnetic resonance imaging (MRI).ii

They’re also used in lighting as well as screens and displays for TVs, smartphones and monitors and are vital in advanced defence systems.

In 2023, Australia was a top five global producer of 14 mineral commodities, including rare earths in addition to the more familiar bauxite, black coal, cobalt, gold, iron ore, lead, lithium, manganese, uranium and zinc.iii

Nonetheless, we’re a relatively small player in the market.

Almost half of the world’s known reserves of rare earths are in China.

China’s  estimated 44 million metric tonnes of reserves dwarf our 5.7 million and the 1.9 million in the United States. Brazil has about 21 million metric tonnes.iv

Production and processing

Reserves are one thing (and exploration in Australia and around the world is continuing apace to discover new fields) but production and processing is what makes the difference for investors.

China is leading the field by a wide margin. It extracted and processed some 270,000 tonnes in 2024. The US was next with 45,000 tonnes, followed by Myanmar (31,000) and Australia, Nigeria and Thailand, each on 13,000 tonnes.v

Australia’s strategic position

The deal recently signed in Washington – the US-Australia Framework for Securing Supply of Critical Minerals and Rare Earths – commits both countries to investing at least US$1 billion each over the next six months to accelerate mining, processing and supply chain development for critical minerals.

Two of the projects were announced by Prime Minister Albanese after his recent meeting with US President Trump.

One project is the Alcoa-Sojitz Gallium Recovery project in Wagerup, Western Australia.

The Australian federal government will provide up to US$200 million in concessional equity finance for the project. The US government is also making an equity investment and Japan has provided about half of the project costs so far.

The project will provide up to 10 per cent of total global supply of gallium, essential for defence and semiconductor manufacturing.

The second project is the Arafura Nolans project in the Northern Territory.

The Australian federal government is making a USD$100 million equity investment in the project. Once operational, this project is expected to supply 5 per cent of global rare earth demand by 2029.vi

A third project has also recently been announced: Astron Corporation’s Donald Rare Earth and Mineral Sands project in western Victoria. A joint venture between Astron Corporation and the US uranium company Energy Fuels. It’s expected to become the fourth-largest rare earth mine in the world outside China.vii

The landmark Australia-US deal is a response to China’s dominance in the rare earths market and Beijing’s recent export restrictions on rare earths, which have left many nervous about vulnerabilities in the supply chains for defence and high-tech industries.

The agreement aims to diversify global supply chains so that other countries rely less on China by accelerating project approvals, supporting local processing and encouraging more private investment through government-backed financing.

Investment opportunities and risks

For some investors, rare earths may be seen as a long-term opportunity given a prediction by the International Energy Agency that demand could double by 2040.viii

There are several ways to invest including:

  • Directly in ASX-listed companies such as Lynas Rare Earths (LYC), Arafura Rare Earths (ARU) or Iluka Resources (ILO)
  • Through exchange traded funds (ETFs) or managed funds that offer exposure to rare earths miners and processors
  • In private equity and venture capital. For high-net-worth investors, early stage mining and processing ventures may offer high risk, high reward potential

Of course, there are risks worth considering, with geopolitical volatility topping the bill. For example, global tensions or a change of mind by President Trump could easily disrupt the Australia-US deal.

Other risks include growing environmental concerns over the high water and energy demands for extracting and processing rare earth elements. There is also the risk of market manipulation and China’s ability to flood the market or further restrict exports, which could cause price volatility.

In any case, patience will be required. Mines can take as long as seven years to become operational.ix

The bottom line for investors is while rare earths are a sector still maturing, they are critical to a range of industries and expected to increase in value over the next decade. However, their share prices are sensitive to global headlines, politics and policy changes, so volatility is to be expected – particularly in the current environment.

As always, there is a lot to consider when weighing up investment opportunities and we are here to discuss any aspect of your investment strategy.

A look at global rare earths mine production in metric tonnes in 2024, as per data from US Geological Survey.

ABC News Graphics

i Historic critical minerals framework| Prime Minister of Australia

ii What Are Rare Earth Minerals Used For? | The Institute for Environmental Research and Education

iii Geoscience Australia

iv, v Mapping rare earth supplies | ABC News

vi Historic critical minerals framework| Prime Minister of Australia

vii Donald rare earth mine given major project status | ABC News

viii Outlook for key minerals | IEA

ix Many details remain buried in Australia-US rare earths deal | Crikey