Many people find themselves stressed out over the holidays because they know they spent too much money again. While some people may be able to recover and pay off their credit cards by the end of January or February, many never do catch up. Wouldn’t it be great to have Christmas without all the stress and worry over how much money you spent? How about planning a cash only Christmas for next year? Everyone can benefit from planning a cash only Christmas, whether they have huge credit card debt or not. Let’s talk about five things that you can get started on right away for your cash only Christmas:
1. Figure out what amount to save for the holidays.
Think about what you spent last Christmas on gifts, food, cards, travel and entertainment. Make a list and write down all the amounts. Review your list and look for categories where you could spend less next year and where you might need a bit more money. Add a little extra to each category because if you under estimate now you will only end up using a credit card when December rolls around.
Remember to include everyone whom you may give a gift to, including the people you work with, your extended family, and people who provide services to you. You will also want to give your children’s teachers a gift.
2. Figure out how much money you currently have to spend.
Look at your finances and figure out what you can currently afford to spend for the holidays. If you have an equal amount of cash and expenses, you are in good shape. That means you don’t have to cut spending to have a cash only Christmas. If you are short right now, don’t worry. In the next step, you will figure out how to make the numbers match. Your goal is to have the cash on hand to spend on everything for Christmas so you don’t use credit.
3. How can I make some more 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. Cut your spending at Christmas.
While you are attempting to bring in extra money for your cash only Christmas, you should also find ways to spend less so you have more money for the holidays. How about doing a secret Santa drawing with your family so everyone just buys one gift instead of something for everyone. Make homemade gifts for your loved ones instead of buying something.
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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