Christmas is the season of giving, and that’s the perfect time to throw our budgets to the wind and make everyone we know happy right? You probably know what’s coming here, but no, December isn’t the time to ignore your budget, and this is often the most critical time of year for your finances.
You’ve been good about sticking to a budget all year, but then December rolls around. There’s no way to make your normal budget work if you want to get your kids all the toys they want, not to mention your friends, parents, siblings and co-workers! If you are like many people, you’ll pull out the plastic and try to pay off that Christmas debt the rest of the year.
This is what I like to call “Reverse budgeting”. You are still committing to a monthly expenses all year (your credit debt), but paying a 20% premium to do so! Imagine if you had set aside that same about each month before spending it, you’d have 20% more money at Christmastime!
Ok, well that’s a great idea for next year, setting aside $25 per month towards a Christmas fund. But what about this year?
First, whatever you do, don’t go into debt for Christmas. No one wants anything that bad, and it’s definitely not in the spirit of the season. First, create a budget of what you can afford, or absolutely must spend. Let’s say that’s $300. The most important thing is when you’re doing your shopping to not exceed that amount! Keep close tabs on your receipts, log expenses in BudgetSimple and if possible end up under that amount.
But how will you get the money to begin with? Well, if you don’t have the savings, you may want to reconsider your budget. Can you create gifts by hand? The good news is there are more ways to make extra money during November and December than any other time of year. Pick up a part-time job to earn that cash, and you may be able to leverage that job for a sweet discount on your purchases as well.
Finally, don’t get too suckered in by the Cyber Monday and Black Friday deals. Remember, you can get 100% off by not buying something at all.
