Have you even started to think about the C word? I know it’s Summer holidays and you probably not want to go there just yet. But what if there was a way for you to be financially totally set up for Christmas time and you start now. In today’s blog I’m going to show you some really simple steps as to how you can get that set up so that you enter January in a really clean slate way with no overhanging hangover of credit card bills.
Yes, it’s quite a bit away. However, financially, the sooner you start working on this, the better. This is something I’ve done now for about nine years, and it works like a dream every time. It starts with a list, as all good things do, and I write down a list of all the things that make up a really good Christmas for me.
For me, that includes a real Christmas tree, good food, festive concerts, pantomime and thoughtful gifts. You then write each of those down and you add the cost beside each of them. Get the total of those items and let’s say for ease that that is 1500. And so you’ve got September, October, November, before December hits, and you can basically break that over three months.
So instead of having it all hit in one month, you start to find the money from September onwards. Obviously the earlier you start this, the smaller the amount needed will be. I do this on an annual basis so whatever my figure is, I divide by 12. I put this amount away every single month. But given that we’re now looking at this with a view to start in September, or as soon as you can, divide that amount by however many months you’ve got until December arrives.
And that is the amount that you’re going to try and find and put away. The way I do it is I set up a standing order from my current account into a savings account, and when September comes or I start spending money on those pieces, that money is there to allocate to. I don’t have to put it on a credit card. I don’t need to get into debt to enjoy my Christmas and make sure that myself and my loved ones have the most amazing time. So that’s a really simple tidbit as to how you can get ahead of things now.
If you’re already thinking, well, I don’t have any spare money, then start to pay attention to the money that’s coming in and out of your account, and you will be amazed as to where you notice money being wasted and find ways to accumulate the money for Christmas in baby steps. You find money that was being leaking to places that you didn’t realize, and when you stop the wasted money, slowly but surely those amounts will start to pop up.
You also may find yourself becoming aware of ways that you can actually generate cash. Maybe you’re going to have a bit of a clear out in the house. Maybe there’s unopened gifts. Maybe there’s clothes that you haven’t even taken the tags off and you can sell those and generate cash. You will be amazed by the amount of money that you can find stopping going out of your account and generating some new that will magically come together and start to give you that amount that you need.
And even if it’s not exactly the total of what you need, it’s a lot more than you would have had, had you just gone straight into Christmas spending and putting on the credit card. It will result in you reducing the headache that you have in January, and that’s a reality for most people. So let’s start thinking about it now.
Apologies to anybody who’s offended by me mentioning this stage. I do think it’s something that can help a lot of people address this stressful time of year financially.
To Your Financial Wellness,
Caitriona
