Christmas Already?

It may only be September, but December comes quickly, and so does Christmas! It seems crazy, but it is never too early to start planning and saving for Christmas. Now is a good time to start discussing your Christmas budget. Decide now, before the Christmas wish list starts, what you will spend per person for Christmas. And stick to it! Don’t get tricked into increasing your budget because a certain person wants something that exceeds your budget. They can keep dreaming . . . or better, yet . . . teach them to start saving for their dream.

In your Christmas budget planning, decide whether you can afford your Christmas budget. If the money isn’t there and won’t be by Christmas time, get a little more creative with your gifts and spend less. It doesn’t benefit anyone by going into debt for Christmas.

Just to look at some numbers . . .

If you were to spend $500 for Christmas and put it all on your credit card at 13% interest, it would take you 42 months to pay it off with a minimum payment of $15 a month! Or, say you wanted to pay it off in just one year, your monthly payment would be $44.18. You don’t want to be paying for last year’s Christmas when it is time to start thinking about this year’s Christmas. Wouldn’t you be better off to have a light Christmas this year and start saving that $45 a month for next year?

A few other helpful Christmas tips:

Keep your eyes open for sales, clearance items and great deals all throughout the year. If you know the people you are buying for, you can sometimes get great deals long before you think about Christmas. Be cautious though, no matter how good a deal it is, if they aren’t going to like it [or it is a fad that will go out of style], it isn’t worth it. Always keep your receipts and don’t forget what you bought and where you hid it.

Get creative in your giving. Homemade gifts are generally cheaper to give and have a lot more meaning. Gifts of service are sometimes the most valued gifts. It truly is the thought (and time) that counts, not the money.

Make a list of who you really want to give to. It may be nice to give gifts to all your family, friends and neighbors but, is it necessary and can you afford it? Maybe a simple handmade note or card would be enough to tell them that you are thinking of them and care about them. If you were to ask them, they would probably say they would rather you be in a healthier financial situation than to receive a gift from you.