Why is it that Christmas surprises us EVERY YEAR? We say to ourselves, "this is the year I'll start saving early!" And guess what? Life happens. We have
weddings to attend throughout the year, birthday presents to buy, summer activities for the kids to pay for, you need to get back-to-school supplies, you'll buy décor to get ready for Halloween and Thanksgiving, and then CHRISTMAS is here.....already!!! It seems to sneak up on us right? We aren't planning ahead for what's to come. We are dealing with the NOW moments by scrambling around to come up with the money....and then we do it again the next time something occurs.
We need to break the cycle of living day-to-day, paycheck to paycheck, moment to moment.
I used to be this person who was like, "CRAP how is Christmas here already?" I would have to shop for all my friends and family the week before Christmas (yes
I would wait to the last minute and ADD stress to the shopping). I hated the crowds I had to deal with, the lack of sales I found, and the RUSH I felt when really, Christmas should be a time of fun and contentment to shower someone I love with a beautiful, thoughtful gift! Now I didn't go into debt for Christmas, BUT gosh December's budget would be ridiculous! I would spend every penny I made that month AND cut back on other expenses so that I could have more to spend on people.
Thankfully, I figured out another way to handle Christmas and I want to share my secrets with you!!! I now have NO STRESS with spending money during the holidays, I can buy Christmas presents throughout the year when they are on sale and not wait for December to buy them, and I go into every January with NO DEBT from Christmas.
So don't let the major department stores prepare for Christmas better than you! If the stores can put out Christmas decorations in September and make us want to buy the décor early, well I say use that as your kick in the butt to START PREPPING FOR CHRISTMAS NOW!
1. Brainstorm a List of Christmas Expenses
Find a quiet time to really sit down and build a list of EVERYTHING you can think
of that you would need to spend money on during the Christmas season. Start with the obvious! Make a list of all the people you are planning to buy Christmas presents for including HOW MUCH you'll spend on each person! So think about your kids, spouse, parents, grandkids, friends, coworkers, etc.
Now don't stop there because there can be more to Christmas expenses then just presents. Expand on your expense list to include Christmas decor like a tree, ornaments, supplies for kids activities, etc. And DON'T forget about party expenses if you are going to an ugly sweater party or hosting a family Christmas dinner. Budget for cost of food, an ugly sweater, a white elephant gift, etc.
Basically, plan for everything you can think of with a target amount for each item and add it up!
2. Determine a Monthly Dollar Amount
So you have your total amount you need to save. AWESOME JOB! Now you need to figure out how much you need to save each month to complete your Christmas savings! So if it's September, then you have three months until December. So take that total amount you calculated in the brainstorming step and divide by three. This will be the monthly amount you need to save in order to have your Christmas savings fully funded. Be sure to add this to your budget so you can proactively save each month for this event (Don't know how to budget? Learn how right here).
3. Put Money in Separate Labeled Savings Account
Ok, so you have a brainstormed list of expenses you'll need for Christmas. You know how much you need to save each month to fully
fund Christmas expenses by December. NOW, you need to create a separate savings account in your bank so you can isolate this savings from your checking account.
Now take it a few steps further. Make sure you LABEL this account so you know what the money is for, and set up an auto transfer from your checking into this separate savings account so that it's less work for you to save for Christmas! It takes the stress out!!!
**If your bank does not allow you to create separate savings accounts for FREE, then check out Ally.com (no minimums and no monthly maintenance fees).**
4. Don't Panic
If you tried doing this earlier in the year but LIFE happened (which is not uncommon), you may realize that you will NOT save enough money to have a fully funded Christmas account. In other words, you won't have enough money saved to spend on all the things you wanted to. If this is the case, DO NOT PANIC. Revisit your brainstorming list to see if you can cut back on expenses to lower your total amount needed for Christmas. If you have done this and you are still short on money, then you have to get creative. Make some presents instead of buying, figure out how to make a few extra bucks to put towards your goal, etc.
Just DON'T GO INTO DEBT for Christmas. It's not worth it!
Take Home Message:
Don't let Christmas be a surprise to you...AGAIN! Take control NOW and start proactively saving. With just a few steps, you can go from a stressed out Christmas where you continue paying for it in the early months next year to enjoying every Christmas moment this year with no reminisce of it in the new year. Set a goal for a NO DEBT Christmas, and start next year with freedom!
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