Cash Christmas

January 16, 2008

Pursuit of Happiness: Money

You might be thinking, Christmas just ended. Why are you talking about a Cash Christmas now?Because right now, when your credit card bills from the last Christmas are coming in, is the time to start planning to have a Cash Christmas!

Why would anyone bother to save up money for Christmas instead of using credit cards?

Christmas on Credit

* Set “target” amounts to spend on each person but go over your target—a little bit at a time—so often that you’re shocked by how much you overspend.
* Plan to have all of last Christmas’ purchases paid off by next Christmas.
* Last-minute “extra” gifts and gifts for people you overlooked are easy to buy on credit. Hard to pay off, but easy to buy!

Cash Christmas

* You set definite amounts to spend, and if you want to spend more on one person you have to spend less on another, or come up with the cash from somewhere else (like your food budget).
* You save up all year for Christmas gifts so when you’re done shopping you’re done paying.
* Last-minute “extra” gifts don’t seem as important, and when you think about gifts for “overlooked” people it’s a lot easier to decide if you really want to buy a gift, give homemade treats, or just plan to spend time together. You focus on giving gifts out of a sincere desire to give instead of guilt. If you realize you really did overlook someone, find the cash in your budget somewhere else, buy a gift, and put the person on your list for next year.

How Can I Do This?

For people unaccustomed to saving up, this can be a new and strange experience. Plan your list right now for next Christmas. Use last Christmas’ purchases as a benchmark.

Did you include people you really don’t normally exchange gifts with? Did you overlook anyone and need to include them this year? Get everyone on your list, including your children’s teachers and any gifts or treats you will buy for co-workers, colleagues, or fellow members in organizations. Be thorough!

Using the amount you spent for each last year, decide if it was too much, too little, or just right. Decide what you will spend this year.

Total up your list. Divide your total by twelve. You need that much money each month to reach your target. For example, if you need $1,000 you have to put aside about $85 per month. $50 per month will grow to $600.

Where can you save it? In a savings account if you have one. In a cookie jar, envelope, or sock drawer if that works for you.

If you think ahead and plan what you will buy, you can save money. Since the money is accumulating, you can buy gifts early when you see things on sale in the summer or fall.

If you really do manage to pay off last Christmas by December, when you give out gifts at the end of this year you will be Christmas-debt free! That’s a huge gift you will give yourself.

Posted in Pursuit of Happiness: Money, Zine 4: January 2008