Begin Planning a Cash Only Christmas
While Christmas can be a very exciting time of the year, it can also be very stressful due to the amount of money that people spend. It becomes even more difficult if you are spending money that you don’t have because that means that you are racking up the credit cards and going into debt. For some the debt burden may be temporary, but for others it may just add to their on-going debt. So what can you begin doing now to ensure that you don’t go into debt next Christmas? You can plan to have a cash only Christmas. This is a great idea for everyone, whether you are debt free or not. Here are five excellent things you can do to get started:
1. Figure out what amount to save for the holidays.
You should do this as early on as possible. Grab a notebook and figure out what you are going to spend during the holidays, including Christmas cards, decorations, party supplies, and gifts. Make sure you give yourself a lot of leeway and don’t under-budget for any of these things. If in doubt, give yourself more money for a category.
You may also want to add in a category for small gifts for neighbors, teachers, coaches, co-workers, etc. Gift cards work great for this, as well as homemade items such as Christmas cookies, chocolates, fruit cake, etc.
2. Sit down and take a close look at what you can afford right now.
Review your financial status and see if you already have enough extra money to cover the expenses you just calculated. If you do, that’s great. You are set to have a cash only Christmas. If you don’t, that’s okay. It’s early, right? In the next few steps we’ll talk about all the things you can do to earn extra money and work with your plan of having a cash only Christmas. Your bonus for doing all this so early in the year will be a stress free Christmas.
3. Bring in some extra money.
If you find that all the expenses of Christmas set you up for a financial crisis than it is time to change the way you do things. By that I mean that if you do some pre-planning and organize your income and expenses throughout the entire year, you can work towards having a lovely, stress-free Christmas instead. Begin by figuring out ways that you can make more money throughout the year, which you can use to have a cash only Christmas. Some ideas are a garage sale, asking for extra hours at your current job, taking on a part-time job or doing some freelance work online. Perhaps you have a hobby such as wood-working which would allow you to make and sell things. Or maybe you are excellent at sewing and could start a local seamstress business. Think about what you could do to make some extra money for Christmas and get started right away.
4. Start making cuts.
Even though you are looking for ways to make more money for Christmas, you should also consider reducing the amount that you normally spend at Christmas. Many families have found ways of saving money at Christmas by doing secret Santa draws. Put everyone’s name in a hat and each person pulls a name and only buys one gift for that person. Also, reconsider how many toys your children really need. Try choosing just a few special gifts instead of lots of little ones. You can also do what so many others are doing, which is making homemade gifts such as jars of hot fudge sauce, Christmas cookies, dark chocolate truffles, etc.
5. Stick to your budget.
When you have the right amount of money to pay for a cash only Christmas, make sure you stay on track. Do not give in to the temptation to spend more than you budgeted. If your credit cards are calling your name, stick them in a baggie, cover with water and freeze them. When you go shopping for Christmas, only take the cash you plan on spending. Leave credit cards at home.
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