So you’re either just starting your Christmas shopping or are nearly finished. You may have placed yourself on a budget and are sticking to it, but for many, Christmas causes cash flow problems and reliance on credit cards.
At this point, you may be asking yourself why I am writing this now? Well, if you begin thinking about next Christmas now, you can plan and save to avoid the use of debt when you begin Christmas shopping next year.
You don’t need think about what to buy, but you certainly can start to think about how much to spend and then save accordingly.
6 Simple Steps To Start Next Christmas
- Make a list of people you buy gifts for – Who are the people you buy gifts for? This can include your spouse, parents, siblings, friends and co-workers.
- Segment the list – Be honest, you will probably spend more on family than you will on friends and co-workers. Your list can be split up into those who you will spend large amounts on and those you will spend a nominal amount on.
- Attach a dollar figure to each person – Put a value on the gift. This not only helps you budget your spending, but it will help you figure out how much to save.
- Total the amount! – How much do you plan to spend for Christmas? Is the number reasonable? Can you really afford it? You may need to revisit your list or the amount you plan on spending.
- Create a savings plan – You might take the total amount you plan on spending and dividing it by 12. For most people, this is the simplest way to go – It is not perfect but for a quick calculation, it will do the trick.
- Begin saving – Open a separate high interest savings account and begin making automatic transfers, every pay day or every month. By the time Christmas comes, you should have enough without having to use credit cards!