Wealthy Wednesday #1

Hi friends! I’ve decided to dedicate posts on Wednesdays to discussing various financial topics. These posts may range from general information, to tips, ideas, or just my general thoughts. I hope that you will benefit from these.

First topic – Budgeting for Christmas!!!!

I chose to do this now because it’s not too late to put some extra cash away to ease the burden of Christmas shopping!

There are several ways to plan for Christmas to help spread the costs over time and not hurt so much.

• Buy for people throughout the year as you see things they might like. – I’ll admit, this is a good theory. I don’t personally do this because it worries me I’ll find something I like for someone better, or they might really, really want something and I can’t get it because I got the gift like 5 months ago. If this works for you, then by all means do it!
• Set up a Christmas savings account – Many financial institutions offer savings accounts specifically for funding the holidays. If this interests you, begin with your bank to see what they offer. Most of these accounts will draw some interest (though likely not much), and there are restrictions on withdrawals to prevent you from using this money whenever you feel like it. If you need a little more control over your spending, this might be a really great option for you.
• If you don’t want to open a savings account, incorporate your Christmas expenses into your budget. The thing about this is, you CAN’T spend it! :) This is what we do. To avoid spending it and not having it when Christmas comes, whatever amount we budget, I record as a transaction in the checkbook as if we’ve spent it. Then as we spend, I adjust the balance. You’ll need to be diligent about tracking if you want this option to work for you.
• One other tip I have is SET YOUR SPENDING AMOUNT!!!!! Do this by person. Then, STICK TO IT!!! You can easily spend way more than you intended. I love giving people gifts that I think they will love. I’m sometimes guilty of spending more than I planned because I think it’s worth it to see someone’s face light up. That being said, doing that can get pricey.

I hope these will help you plan better for the upcoming holidays!! If you have another way you budget for the holidays, I’d love to hear about it!!!

Also, if there is a topic you’d be interested in me discussing (and if I have enough knowledge on the subject), please leave a comment and I’ll see what I can do.