Christmas Budgeting
Can you believe it’s only 100 days until Christmas?! Crazy, right? Yep, and once Pumpkin Spice gets out of the way (for real) then we can get on with the better coffee drink - gingerbread lattes (my personal favorite). With all the craziness that holidays bring why not have one that doesn’t cause you stress? Here’s a few ideas that might help you get ahead so that the cost of Christmas doesn’t follow you into 2020.
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1. Set and stay on a budget. If you go into Christmas without a spending plan you will most likely overspend or go into debt. According to Marketwatch.com in 2018 Americans racked up an average of $1,054 of Christmas debt. Rough estimates and my calculator tell me that would take them into 2023 before pay off PLUS taking on an additional $500 in interest payments. NOT WORTH IT!
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2. Start a sinking fund for Christmas now. Once you’ve set the amount you can afford just divide the remaining months left before Christmas and start setting aside that amount each month. For example (and we’ll use $1,054 as our example) if you started today you would need set aside $351 each month to use just for Christmas. IMO, consider spending less this year.
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3. Buy less, more meaningful gifts. Isn’t it true that 1 meaningful gift is worth more than 10 meaningless gifts? (Unless your Dudley Dursley from Harry Potter) Take the time to put some thought into your gift giving…really consider the things that would make those you buy for happy. You’ll find the thought put into it will help you consider the cost of the gift more, helping you spend less.
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4. You don’t have to buy for everyone. Carey Nieuwhof says, “Want to have a good Christmas this year? Lower your expectations.” It’s going to be difficult conversation so, take a deep breath, and tell the family that this year we are spending less on Christmas so we aren’t buying as much and we aren’t buying for everyone. Making others happy while frustrating yourself isn’t healthy. It’s not. Being healthy is better for your immediate AND extended family.
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Bottom line: it’s up to you if Christmas is going to be financially frustrating. In 100 days how do you want to feel?
-Chad Johnson