So…….
You finally faced the music…… you overspent last Christmas!
Ouch!!
Guess what?
You’re not alone.
The latest National Retail Federation survey said that $1,048 was the maximum amount holiday shoppers planned to spend on everything from presents and pies to tinsel and Christmas tree.
But, unless you had that amount set aside in cash, majority of shoppers ended up using credit cards…… which did a lot of damage to their budget!
Get this:
If you put that amount on a card last Christmas, it could take you more than five years to pay it off. Your $1,048 worth of stuff will end up costing a whopping $1,625 thanks to interest.
Think about it……
That’s an extra $553 tacked on to your holiday bill for one year of Christmas spending.
What could you do with an extra $550 if it wasn’t being eaten up by credit card interest?
I can name a few…..
- Build up your emergency fund
- Put towards next vacation
- Add to your retirement account
Understandably, Christmas is the season for giving.
But giving is no fun when it ends up costing you more. If you’re feeling regret for going overboard last Christmas, don’t worry. Just make the decision now that your next holiday will be different.
Here’s how to avoid that $550 mistake this Christmas:
Make a plan to cash flow this year’s holiday spending and stick to your budget so you avoid feeling like you have no choice but to swipe plastic.
Saving up for next Christmas can be really simple.
Let’s say you want to budget $800 for Christmas 2020. Divide $800 by 10, then set aside $80 each month from January through October.
Then ta-da!
By November, you’ll be ready to get a head start on your holiday shopping with the money you’ve saved up all year long.
So don’t repeat the mistakes of Christmas past.
Quit the excuses and get on a budget once and for all.
That way you’ll be all set by the time next Christmas rolls around.
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Until next time…..
Agree or disagree? I love your comments! So please let me know your thoughts in the comment section below.
I look forward to hearing from you!!!
Althea
Helping God’s people realize and achieve their true financial potential, become debt-free, build wealth and give generously!!
PS. Financially, most of us know what to do; we just have trouble doing it. That’s where a coach can help. CONTACT ME for a FREE 15-minute consult.
