Trying to Budget For Christmas?

Christmas is coming up quick so start budgeting now!

Did you end up with a credit card bill shock last January because you didn’t budget your Christmas gifts? It’s the time of year to start thinking about your budget for Christmas. We don’t want the same surprises as last year, so this year we are going to fix that.

Here’s the deal…

As of today there are just under 100 days left until Christmas (in case you didn’t know they have scheduled another Christmas this year…. shocking! I know right!?!).

That means sometime in the next 100 days or so we are all going to panic and go crazy about how much we need to do and shop for in the short time. In doing that, we will pay more than we need to, buy things on impulse and just be all around foolish in our seasonal shopping ( it’s ok we all do it). Plus it turn us into these huge freakin’ balls of stress.

NOT THIS YEAR. NOT THIS TIME. WE ARE BETTER THAN THIS!

Let’s Avoid the Money Shock This Year and Start Saving Now

Instead of getting to December and realizing that you haven’t saved enough for Christmas this year let’s try something new. Let’s get set up for a successful Christmas.

It doesn’t take long to do.

Here’s what you need. (Pick one of the 2 options)

Method 1: How Much Did You Spend on Christmas Last Year?

Step 1: Find Last Years Grand Total

If your Christmas shopping is pretty much the same from year to year, then this is an easy way to go. Go back into Mint or Quicken, or your bank/credit card statements from last year and figure out how much you spent on Christmas.

Let’s say you spent $1000 in total on Christmas related shopping and activities last year.

Step 2: Take That Amount and Divide it by the Days you Have Left.

If you spent $1000 and have roughly 100 days left until Christmas then you can figure out how much you need to be saving every day to avoid the dreaded January bill shock.

$1000/100 = $10 a day needs to be saved.

Step 3: Automate That Amount into a Separate Account.

In our example you need to be saving $10 a day to make sure you have enough to cover last years expenses err… festivities.  Set up an automatic transfer to a separate savings account for that amount.

Do it every day if possible or every week. This will make your holiday season a little more festive when you know there is money in the bank.

One last thing…

If you have made new friends this year and need a little more money go ahead and bump up that number. Going from $10 to $11 a day will put an extra $100 into your savings account.

Method 2: Who are you shopping for?

Step 1: Make a List of Everyone You Need to Buy For and Total How Much You Will Spend

If you are super organized you may have last years list still kicking around (hint: if you put it in Excel or Word it’s there for you every year). If not brainstorm everyone you need to buy for this year.

If you are like a lot of families you probably set a limit on how much you want to spend on each person. It’s a good easy conversation to have with those you feel close enough to have this conversation with.

Repeat Steps 2 and 3 above in Method 1

Look, most of the stress around the holidays comes from not planning things out. This quick little process will save you stress, financial headaches, and may get you started (and finished) your shopping long before you may usually start.

I know it’s early but that’s how we work here. Think in advance, plan for it, execute the plan.

If You Want Bonus Points

For the keeners out there: Try and have all your shopping done by the end of October. That way you can watch everyone else fight the crowds and you can sit back and relax.

Budgeting = Freedom

Budgeting gives you freedom. Take a few minutes now and get everything set up to help pay your bills in January when they come around. And while you're thinking on those presents remember the importance of budgeting as a whole. Especially if a new house is coming up in your future making sure your finances are where you want them is key! But it's also key to use the best Agents for your transactions and here at the Springs Summit Group we'll make sure to make the transaction as smooth and effortless as possible. So shop for presents, but there's no need to shop Real Estate agents, we are here for you!

Article content: https://familymoneyplan.com/budget-christmas-bill-shock/

Edited by: Seth Worthey