Christmas can be a stressful time of the year, especially on your wallet. Learn how you can prep for Christmas in July so that you can enjoy an all cash Christmas this year!
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It’s hard to believe I’m about to share about Christmas prep when there is literally a heat advisory outside of my window. I know, I know….crazy!!
It may seem absurd to be thinking about Christmas in July (hello Back to School!!), but the sad reality is that lack of planning can cause problems – especially money problems! Here’s some hard truth.
In a survey conducted by Magnify Money in 2018, the average holiday debt was $1230. This number was up from $986 in 2015, $1003 in 2016, and $1054 in 2017. Of those who incurred debt, 64% of those said they hadn’t expected to use debt.
Was this you last year?
Were you paying off credit card bills after Christmas had come and gone?
Even if you those numbers aren’t exactly yours, I want to encourage you to keep reading. I don’t want that to be you this year. Decide now to stop going into debt for Christmas so that you can enjoy the holidays without regret!
Let’s plan your Christmas spending now so that you can stop the cycle of debt once and for all. I know you can do it and I want to help!!
Christmas in July: How to Plan for an All Cash Christmas Now
1. Make a plan now (gift list, travel, cards, decor, etc.)
Y’all know by now that I love lists!! I know it sounds crazy to some of you that like to “fly by the seat of your pants,” but hear me out.
I know it seems crazy, but start thinking about your Christmas plans now. Brainstorm a list of people for whom you’d like to give a gift. Would you like to travel at the holiday? Do you want to send a Christmas card or skip it this year? Are there any decor items you’d like to invest in this year?
Think through the details of your holiday and jot down your initial plan. Use pencil! 😉
2. Estimate the costs
Once you’ve got your initial plan, it’s time to attach a cost to it. When it comes to your gift list, attach a price to each gift. You can tweak it later, but you do need to get as detailed as you can here so that your plan is realistic.
Think about travel as well. If you travel at the holidays often, then you probably already have an idea of what it will cost. Be realistic – holiday travel can be pricey if airfare is included.
Once you’ve attached a price to each category/items in your plan, then add it all up so you know the total amount you’d need to execute your initial plan. Make sure you sign up to receive my Christmas budget planner at the bottom of the post!
3. Make necessary tweaks
Once you know how much money you’ll need, then it’s time to be realistic with yourself and make some tweaks. This can be really hard, especially if you realize you likely won’t have enough money for everything.
You may have to shorten your gift list or forego the expensive holiday travel. Those decisions are personal and you should tweak based on your priorities.
Another option would be to find ways to save extra money between now and December so that you DO have the money you need to execute your plan. Start selling items on Facebook marketplace or get some side work to help fund your Christmas plan.
The choice is up to you, but you’ll need to tweak your initial plan to reduce your budget or find ways NOW to increase your income in the short-term.
And if somehow your plan to increase your income falls flat, then you need to determine now that you’ll make the appropriate sacrifices. The good news is that by thinking about it now, time is on your side!
4. Commit to the plan (budget)
Once you’ve been realistic with yourself and made any necessary tweaks, then it’s time to commit to it! This is the time to agree to stick to your plan.
If you are married, then your spouse needs to be on board. (You should be including them in these discussions up to this point anyway!) Sticking a budget can be incredibly challenging at Christmas, so you must both be committed to this plan!
5. Start saving each month
Once you have your Christmas budget set in stone, then you’ll need to divide that number by the number of months you have to save and put that amount of money in a savings account each month.
Add a line for this in your Christmas budget. I use EveryDollar and it’s very easy to add a line for this.
If increasing your income is part of your Christmas budget plan, then it’s time to get hustling! Add that income to your EveryDollar budget as it rolls in and then allocate it to your Christmas budget.
6. Put the money in a separate account
Put this money in a separate account so that you aren’t tempted to touch it. We keep ours in a simple savings account at the same bank that we use for our joint checking. This makes it very easy for me to transfer the amount each month.
If you think you may be tempted to touch it, then it may work better for you to put it at a separate bank altogether. Do whatever works best for you.
Make sure that any extra money you earn for Christmas also goes directly into this account. Don’t let that money slip into your wallet or else it might disappear on your lifestyle now. I speak from experience on this one!! 😉
7. Don’t loose focus come December
If you’ve worked hard to save up cash for Christmas, the last thing you want to do is blow it when December comes. Remember, a lot of the people who went into debt for Christmas in 2018 didn’t intend to when they started out!!
When it’s time to start buying gifts and spending that cash, don’t go crazy and overspend. Stick to your budget and stay within your parameters!
This will take some intention and careful tracking, but I know you can do it.
If you aren’t naturally a planner, you probably think I’m crazy by now. I promise you though, a little prep work now will help you enjoy the holiday season without worrying about how you’re going to pay for it.
Dare to be different, friend!! Christmas in July is a “thing” now anyway, at least according to the Hallmark Channel. 😉
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