Yes, this could be the blog of great depression. After all, it’s only just past Boxing Day and I’m talking about what? Paying for Christmas? Christmas 2011? Well, yes. And you can close your eyes and plug your ears now if you wish. I won’t tell.
However, as Tristi mentioned in her recent blog, paying for Christmas with cash just feels good. It does not feel good to wake up on December 26th with a load of squeaking toys and a big, big balance on the credit card. How can you avoid that morning after the day before budget?
Reduce your Christmas spending. February is a good time to chat with people about Christmas spending. In our family, we have mostly stopped giving gifts between adults. Sure, the parents and children give items to each other, but we give handmade gifts or cookies to great aunts and uncles and the like. While we enjoyed the gifts, we all also enjoy having less debt come the new year. After Christmas is not the right time to discuss this, so try February or March, before most people have done their Christmas shopping for 2011!
Set a Christmas budget and save toward it every month through direct debit. Place this direct debit into a different account that your normal savings account, preferably one that is well out of reach.
Make a Christmas list and keep it on your computer and in your wallet. Sometimes the best items are the ones that you find new at a summer garage sale or on deep discount some time in March. Keep a list of what you’re looking for and what you have so you don’t double and triple-buy for people. Shopping throughout the year makes it easier to avoid panic at the end of the year.
Buy gift cards. I find this is even more effective than saving money, because I make the gift cards hard to access. I buy gift cards for the local grocery store, then I redeem them at Christmas time when I buy items to make homemade cookies. It feels very good!
Look at your resources. If you have a points card, collect points throughout the year and redeem them. Think about making Christmas gifts – you have all year! Think about swaps, trades, or experiences that people would enjoy. When time is on your side, you have a lot of options.