5 Tips for a Financially Stress-Free Christmas
Christmas in May? No, I haven’t lost my mind! I think it’s never too early to planning for Christmas. We think about it periodically throughout the year, but somehow we end up being surprised when it comes. We wake up one morning and realize we have two more paydays before Christmas, and we just aren’t ready. Too many families think the answer lies in credit cards, but, please, don’t fall into that trap! With a bit of forethought and preparation you can have a great Christmas without the stress of money problems. (Sorry, I can’t help with the family drama stress!) Here are 5 tips to help you get ready, and not be financially stressed when the season comes!
- Make a list. Yes, a list is a pretty basic place to start, but it’s the best place. If you have last year’s list, that’s a great reference. If you don’t, though, that’s okay. Just sit down and think of all the parties and events you attend, and what gifts you’ll need for each one. Try to anticipate everyone you’ll want to buy for. Try to remember the people that you sometimes forget to add until the last minute–teachers, kids’ friends, neighbors, etc.
- Set your budget. Ah, the hated budget. I promise, though, it will make a real difference for you to decide how much you’ll spend. But, don’t just set a random number! The best thing to do, is to determine how much you want to spend on each person. (Here’s an extra tip: Be realistic!! If you set a budget of $25 for your sister, but know that you always spend extra on her, put that in the budget. Now is the time to make the changes you want.) Add together all of the totals from each name to get the amount you’ll need.
- Add in activities and extras. Don’t forget to add in extra expenses that always come in at Christmas. These can include: printing and mailing cards, charitable giving, mailing gifts, potluck dinners, new Christmas décor, boxes and wrapping paper, new Christmas clothes, gas for vehicles, travel expenses and hotels, and any other extras you can think of. All those extra things at the holidays can really add up. All of the extra baking and cooking alone could have it’s own budget line–in can get really expensive! Plan for those extra things now, so you won’t have to sweat them when the time comes.
- Plan for the unexpected. There will always be unexpected things that pop up at the last minute. Try to work a buffer into the budget, so these won’t knock you off-course. Maybe you hear about a fun Christmas activity for your kids that you want to do, or your church takes up a special offering for a needy family, you’ll be glad to have some extra wiggle room.
- Fund your holiday. When you get your list and budget set, it’s time for the fun part–saving for it! You might not think that sounds like fun, but I promise, it is! Look at your calendar and figure out how many paydays you have between now and the time you’ll start Christmas shopping. Then, divide the your budget by that number, and you’ll know how much you need to save each payday to reach your goal. For example, I want to save $550 for Christmas this year. I’ll start Christmas shopping right after Thanksgiving. So, I have 14 paydays to save that amount. I’ll need to save about $40 from each payday to reach that goal. It’s so fun to watch your money slowly increasing every month. It’s very important to keep your Christmas money separate from your other money, or you’ll end up using it for something else. Many banks have special accounts where you can save money for special occasions, and I recommend them. They usually earn a small amount of interest, and you can’t withdraw the money until a certain date. Very handy for those who are tempted to “start early!”
Christmas doesn’t have to come as a shock. You don’t have to be stressed about paying for everything. You don’t have to go into debt, and you don’t have to spend the first months of the new year trying to pay for the things you thought you had to have for Christmas. Start planning now, and you really can have an enjoyable Christmas with no money stress!
