Josh Elledge - Chief Executive Angel
Early Christmas planning is typically avoided due to budget – we don’t believe we can spare any cash to squirrel away or snag deals ahead of time. So we push the planning and preparations off. But then December comes along – with the exact same income and usually more expenses – and we somehow magically make it work. Unfortunately, that magic reveals itself later as just smoke and mirrors when the bills come. Then we are stuck in the cycle, vowing we won’t ever do this again, while struggling to pay the credit card. But months go by… and somehow time and money get away from us… setting history up to repeat.
If this scenario sounds familiar, keep your promise to yourself this year and break the cycle of Christmas debt slavery. I’m going to give you strategies for finding extra money in your current budget. Once you start employing them, the key is to physically take those savings and set them aside. You must be intentional to count every saved dollar and get that money either in cash or in a special account for safe keeping. Don’t leave your Christmas money in a regular expense account. If you don’t move the money, it will eventually disappear and you’ll be no better off.
Strategy #1 – Slash restaurant expense. I’m not unrealistic. I won’t tell you to never eat out for the next 10 weeks. Instead, I suggest an honest look at what you do spend, and a plan to cut that at least in half. One method is to set a maximum amount per week – no cheating. Then the difference between what you used to spend, and your new max, goes into the Christmas fund.
Other restaurant methods – with each you put away what you would have spent:
– Only go with a coupon. Look in your newspaper coupons, local free coupon books, sign up online for mailing lists of restaurants in your area, and check deal sites like SavingsAngel.com/Groupon and SavingsAngel.com/LivingSocial.
– Choose places where kids eat free.
– Share meals. Pick restaurants with large portions and/or plentiful sides to make sharing easier.
– Cut the cola. Drinks at restaurants are outrageous, just order water. In fact, consider cutting down on any soda habit you have. Same goes for any beverage you buy, really.
– Brown bag and travel mug it. Even if you are frugal – just $3 a lunch, you could pad your fund by over $150 before Christmas by packing instead of buying.
Strategy #2 – Switch up your mobile plan. Most carriers have tiered plans now, and it’s free to switch. A lower plan can eliminate excess charges for things you don’t even use – like too much data. A friend recently downgraded her plan and saved $30 a month on just one phone.
Strategy #3 – SNAP or pantry challenge. You may have heard of the SNAP Challenge, where you only spend a maximum amount on food per person for a week or an entire month. Designed as an empathy challenge, it’s also a successful budget challenge. I’ve advocated something similar for years, called a pantry challenge; where you only make meals from what you already have on hand for a week or even 10 days. Either of these two food challenges work well to free up Christmas money.
Strategy #4 – Sell something, preferably numerous somethings. With online yard sales on Facebook, and an abundance of consignment shops, you can find buyers for all kinds of unneeded items. Deep clean in your closets, drawers and storage before winter – and make some Christmas cash. Win-win.
Strategy #5 – Fun deals. The closer the holidays get, the stronger the desire to make memories and have experiences. Scour deal sites, coupon books, and event websites, and pocket the savings.
Strategy #6 – Coupon. (You knew I wouldn’t leave this one out.) But this isn’t just normal couponing, this is being especially intentional. The goal is to use more coupons than usual, and the amount of each goes into your Christmas fund. Add up your coupons either before the checkout, or check your receipt afterwards to keep track.
These strategies take some time and effort, but result in the ultimate gift – no new Christmas debt!
