Tis the Season!
BBQs, pool parties, camping, lightning bugs, and running through the sprinkler are all classic signs that Christmas is upon us, right?
Maybe I have mixed up my seasons, but I promise my thought process is spot on.
In this article, I hope to show you how thinking about Christmas in July can save you money for Christmas in December and avoid the Christmas Debt.
Holiday Prep
This means more than writing out the menu and blocking off a Saturday morning to wrap presents. This means sitting down with pen and paper (or the Notes section of your phone) and listing everyone you need/want to purchase holiday gifts for this coming year. Think through family, friends, co-workers, holiday parties, or your kid’s classroom (possible) needs.
After you have the list of who, pencil out a dollar amount associated with each person next to the name you wish to spend on them, total that number up, and either cry because it’s larger than you anticipated or smile because you have set yourself up to have a Very Merry Christmas with your family and friends, but also feel accomplished for being so proactive and comfortable with your goal number for the holidays.
If you are crying because the number is more significant than you anticipated, you may need to adjust the numbers associated with each person to get the desired total number you have written down. Or, do some quick math and divide the total number by the year's remaining months (6 months, counting July through December). This new number is the amount you need to save each month to cover the costs for those anticipated gifts. Hmmm…that sounds a bit like a sinking fund to me!
Define the plan of attack
You can take two routes with this now.
Spread out the spending
You can take the allotted amount each month and start to tackle your shopping list now, a little at a time. Find items that may be on sale, bargain end-of-season deals, or just take advantage of having more time and focus on a few people each month to shop for instead of all at once.
One large shopping spree
Or you can take the all-at-once approach. Whether you love to shop on Black Friday or seek the thrill of shopping up to the last minute before the holidays, you can shop worry-free, knowing you have previously saved for this shopping spree.
Whatever direction you take, make sure you spend the dollar amount you have planned and saved for, and don’t go overboard to blow your Christmas Budget.
Avoiding Christmas Debt
If you have found you tend to overspend on the holidays, are always shocked at the amount left in the bank account after you total up all your holiday spending, and feel overwhelmed with the thoughts of spending money during the holidays, reach out to our financial coach to discuss setting up a sinking fund, and what a realistic budget could be for you.
Christmas in July Mindset
July 22, 2024
Lindsey Curry
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