Smart Money: A Credit Card-Free Christmas
My apologies! I tried to post this last week, but Blogger ATE it - ugh! So, let's try this one again.
Not that I'm bragging (well, maybe a little), but this is the second year we are going to have an all-cash Christmas. It's actually easier than you'd think, but it does take a bit of planning and a little self-discipline. And I'll tell you, it is such a good feeling to not be dreading that January credit card bill.
It started last year. At our company, we all get our raises in April (and yes, my company is still managing to give at least tiny little raises). When I got my raise, I calculated exactly how much it would be each payday and I set up a separate account to transfer it to every two weeks. It's like our own little private Christmas Club account. I even found a bank that would give me $100 for opening up a new account with direct deposit - hey, I'm a girl with an eye for a bargain.
The trick with the direct deposit is to set it and forget it. That money is untouchable. It is on the moon, just like the money they take out for taxes and FICA and all that other stuff. Then you'll find out you won't even miss it.
Then when Thanksgiving rolls around, you have a nice little nest egg that you can use completely guilt-free for your gifts. You just divide it by the number of people you have to shop for and you have a basic budget for your holiday shopping. Like Tim Gunn says - "Make it work"
January is a fabulous time to set something like this up. You're already in that New Year's Resolution mode and even if you can only spare a few bucks, over the course of the whole year, you'll be surprised at how fast you'll see it grow. Then for Thanksgiving 2011, you'll be able to look forward to taking your cash out to start your holiday shopping!
I have my mother to thank for the raise idea. This is one of the many good ideas she gave me over the years. She reasoned that since you were getting along well enough on the money you were currently making, you should set aside the extra for a special purpose rather than let it be absorbed into your regular budget. Then you would feel like you got something special for the extra money. She was a pretty smart cookie, my Mom.
What are your ideas for keeping your holiday spending under control?
Come back every Thursday for a fresh dose of Smart Money. If you'd like to see past posts on the subject, just click on the tag below for a complete list.
By TwitterButtons.com
Not that I'm bragging (well, maybe a little), but this is the second year we are going to have an all-cash Christmas. It's actually easier than you'd think, but it does take a bit of planning and a little self-discipline. And I'll tell you, it is such a good feeling to not be dreading that January credit card bill.
It started last year. At our company, we all get our raises in April (and yes, my company is still managing to give at least tiny little raises). When I got my raise, I calculated exactly how much it would be each payday and I set up a separate account to transfer it to every two weeks. It's like our own little private Christmas Club account. I even found a bank that would give me $100 for opening up a new account with direct deposit - hey, I'm a girl with an eye for a bargain.
The trick with the direct deposit is to set it and forget it. That money is untouchable. It is on the moon, just like the money they take out for taxes and FICA and all that other stuff. Then you'll find out you won't even miss it.
Then when Thanksgiving rolls around, you have a nice little nest egg that you can use completely guilt-free for your gifts. You just divide it by the number of people you have to shop for and you have a basic budget for your holiday shopping. Like Tim Gunn says - "Make it work"
January is a fabulous time to set something like this up. You're already in that New Year's Resolution mode and even if you can only spare a few bucks, over the course of the whole year, you'll be surprised at how fast you'll see it grow. Then for Thanksgiving 2011, you'll be able to look forward to taking your cash out to start your holiday shopping!
I have my mother to thank for the raise idea. This is one of the many good ideas she gave me over the years. She reasoned that since you were getting along well enough on the money you were currently making, you should set aside the extra for a special purpose rather than let it be absorbed into your regular budget. Then you would feel like you got something special for the extra money. She was a pretty smart cookie, my Mom.
What are your ideas for keeping your holiday spending under control?
Come back every Thursday for a fresh dose of Smart Money. If you'd like to see past posts on the subject, just click on the tag below for a complete list.
By TwitterButtons.com 
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