Lessons learned from Christmas Spending
Did you go overboard with your Christmas spending this year? I know I did.
Every year, I vow to stick to a budget for Christmas. Every year, I fail.
My problem is not just spending money on presents, but also all the extra spending that is done throughout the month, such as eating take-out a lot more often than we normally do, hosting get-togethers, buying presents for ourselves when we hit the malls.
By following these self-imposed rules, I hope to start teaching myself better money management skills so I can be prepared for next year’s season of spending.
1. Christmas Savings Account
With Ing Direct, I can very easily open numerous savings accounts for several different options. We already have three (Emergency, General, and Travel). I am opening a new one called “Christmas” and will deposit $75 each month, giving us an extra $900 to account for next year’s outrageous December spending, which will include gifts, the required company gifts, parties, hostess presents, etc.
2. Buying Online
As much as possible, I hope to stick to online gift buying next year. I purchased several gifts online this year and it was a huge success. Not only do I avoid the crowds, but I also avoid the temptation of shopping for myself. When I’m walking around the mall, it is incredibly difficult to not walk into my favorite stores and spend lots of money on myself. I definitely don’t window shop online.
3. Hide the credit cards
By relying on our Christmas savings account and hiding the credit cards next December (except for online gift purchases), I hope to be held more accountable for our Christmas purchases. This month, our budget was all over the place that I finally gave up trying to account for everything. Emptying out the savings account, and relying solely on cash, will help us see where our money is going.
We also encounter the entertainment overrun each December. Oddly enough, this year it was baby showers and going-away parties. That's a good idea to incorporate it into the gift budget.
If you get paid every two weeks you will get an extra paycheck in either Oct, Nov, or Dec. We use this extra check to fund Christmas. It works out well for us.
But the special Christmas savings account is a good idea too. It really makes you realize how much you spend at Christmas when you force yourself to save all year for it.
The Christmas savings account it a great idea. I definitely think it helps to save up for things like this when we know the costs are coming yet it only happens a certain time of the year.
Very nice post.
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