Christmas Season Smart Money
If you’re smart and you use some smart money management tips this Christmas then financially, Christmas will be a breeze. (I cannot guarantee you the same outcome for your family get togethers, but that’s a different matter entirely!)
By taking smart money advice, you will not be crippled financially for the majority of the coming year, like all those not-so-smart people who will be paying high rates of interest on their credit cards and catalogues for months, if not years, to come. Smart money management allows the expense of Christmas to be time-limited to a maximum of 3 months (November, December and January).
So you are probably wondering, “How we are supposed to get smart with our money at Christmas? It’s the most expensive time of the year!” Smart money management boils down to three simple things:
1. Budgeting
2. Mindset changes
3. Thinking creatively
Resist ‘spreading the cost’ of Christmas
It’s easy enough to spend an hour or two working out what you have to spend – just do the sums and come up with a figure – it doesn’t matter if it’s £100 or £1000. This is the amount you have to spend, no more!
The killers are catalogues and credit cards, as you will end up paying interest on interest for months to come and for this reason you need to change your mindset. If you think by doing this you are spreading the cost of Christmas, you are mistaken – smart money people realise that if they do this, they are actually spending far in excess of the cost of goods.
Be a Smart Money Manager
Your best bet for being a smart money manager is to spend no more on Christmas than you can afford. So use the figure you came up with earlier, (remember to include any Christmas bonuses you may get and how much you’ll save by not being at work) and work from there.
Write a list of everything that you will be paying out for this Christmas including, food, gifts, nights out with work, new clothes, tips, decorations and travel expenses and decide what you can afford to spend on each. If you’re on a tight budget you may have to forgo some things and get creative with the types of gifts you are going to give or what you are going to wear – (this is where the creative thinking comes in) – but be smart and don’t go over the budget you have set yourself.
At Christmas be smart and use the money you actually have, wisely – don’!