How did you do this holiday season? Were you able to stick to your budget or did you overextend yourself? Will you be surprised at the new balance when the credit card statements arrive in the mail this month? Read on for a sure fire way to avoid overextending yourself next year.
The absolute best way I know of to truly have a Merry Christmas (or Happy Hanukkah) without January regrets is to plan ahead. Remember back when your employer or bank would set up something called a Christmas Club? A set amount was deducted from each paycheck and placed in a special account called a Christmas Fund. At the end of the year before Christmas, a check was presented to you for the full amount of the fund for your use during the season.
You can do the same thing for yourself. Calculate what you spent on the holiday. Be sure to include the cost of any special clothing, food and beverage, and travel. Divide the total amount by 11. The result is the amount of money each month you need to set aside in your personal Christmas Fund beginning this month. Open an interest bearing savings account at your bank or credit union. Transfer or deposit the set amount monthly. It is best if you can set up an automatic deposit to guard against forgetfulness or lack of tenacity.
This is a form of planning for the unexpected. In reality you are planning for an expected, but not a monthly occurring expense. If you will do as suggested, you will enjoy a holiday without financial woes or January regrets. The last thing you want is to still be paying on a credit card funded holiday a year later.
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