Metroplex Savers: Financial Friday 7/9/10 - Half Way to Christmas

Friday, July 9, 2010

Financial Friday 7/9/10 - Half Way to Christmas - Ready...Set...SAVE!!!

Can you believe there’s only 6 months until Christmas? And believe me, these next 6 months will go by super fast! One thing I see people struggle with (or complain about) is affording Christmas. Here are some tips on how you can avoid the financial burden of Christmas.

1) Sit down and make a list of all the people you intend to buy for this Christmas. Mom, dad, siblings, cousins, nieces, nephews, etc. Make a T-chart or a spreadsheet, however you want. (*If you buy decorations, gift bags, wrapping paper, etc., don’t forget to add those in there as well.) What about food? Any thing/person you think you will spend "extra" money on due to the holidays, make a budget.

2) Think about the kind of gifts they might like or what you might like to get them, and estimate a price. OVER estimate the price!

3) Add up the total, then divide by 6. This is how much you should save each month from July-December.

If you don’t want Christmas expenses to creep up on you and put a huge dent in your budget (OR CREDIT CARD), then you should start saving for it. Let’s say the total is $600 (for simplicity sake). Then from July thru December, you should set aside $100 each month for your Christmas expenses. If you think you will end up spending that money if it’s in your bank account, then put cash in an envelope and stick it somewhere where you won’t see it on a daily basis, like in between your mattress and boxspring. Then 6 months later, you will have $600 saved and no worry about money! If you use this cash to buy your items, it will help you stick to your budget. It’s so easy to spend and spend and spend when you just swipe your card.

So take these next 6 months to set aside some money to help with Christmas. You will be glad that you did.

NOTE: If you want to avoid spending hundreds of dollars in decorations, gift wrap, bows, etc., then shop for these AFTER Christmas, when the holiday stock is marked down 75%-90% off. You will save a FORTUNE!