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I just recently did a podcast episode on this and wanted to do a blog post as well.
Side note, if you haven’t had a chance to listen to the Confident Money Podcast, check it out! I would be honored to have you as a listener.
What is this “Christmas in June?”
My whole idea behind this, “Christmas in June” thing is that I want to get you to start thinking about Christmas! I know that it sounds early. However, if we can start thinking about it now, we can save up more money and be able to be less stressed about the coming holiday.
It happens all the time. Summer comes and goes, then the holidays quickly approach and we haven’t set any money aside for what is to come.
But, what if this year was completely different?
What if you took the next 7 months and spread out your savings so that each month you could do a little, instead of being stressed for two months trying to make things work? Or worse… turn to a credit card to make it happen because of poor planning.
Imagine that… you have taken 7 months, set aside some money each time and now Christmas rolls around and you’re completely set. I love the reduction of stress that brings, the ease and peace that comes with this planning ahead.
So, my goal is to inspire you to start saving for Christmas, now!
The idea is simple, if you had a goal of $1,000 to set aside, specifically for Christmas, then for the next 7 months you would want to put aside about $143 each month. That would look like this:
I really like this, compared to the approach that commonly happens, where we try to cram everything into a short amount of time. That looks more like this:
This approach is so much more stressful and this is assuming that your budget could even handle such a large amount for 2 months like that. I definitely like to spread it out over many months, rather than putting the pressure on just a couple months.
So, if you’re wanting to join me on this journey to Christmas in 7 months. A journey towards a planned, stress-reduced approach to Christmas 2019, then join me in doing the following 3 things.
Set a Christmas Savings Goal
This is where you need to be intentional and make some decisions.
One way that I like to go about this is to start by making a list of people that I want to buy a Christmas gift for. Once I make that list, I get a ballpark idea of how much I want to spend.
It is not that I am playing favorites or anything here, but I know that I am going to spend more money on my wife for Christmas than I will on my mom’s dogs and their new chew toys.
You know what I mean?
So write out your list of people, then get an idea of how much you’d like to spend on each person. And again, money does not equal love, so it’s not like the more money you spend on them, the more you love them… it’s just about being able to selflessly give. Remember that!
Use that list, and total up the amount you’re wanting to spend and decide on your savings goal. If it is $500, great. If it is $2,500, great. Simply set your goal then move onto the next step.
Calculate Your Monthly Savings Amount
Once you set your desired savings goal to have by Christmas, take that total and divide it by the number of months that you’re going to be saving for.
In the example I put above, you’ll see the amount was divided by 7 because June to December is 7 months.
For instance, if your goal is $500 from June to December, then you would take $500 divide it by 7 and that would equal $71.43. So, if we round up that is about $72 per month, for 7 months to get to your goal of $500 for your Christmas Fund.
Vow to Use Cash
Christmas can be one of the easiest times to spend money (for me at least).
The advertisement companies know what they are doing, they’re smart and intentional about getting you to buy.
So I know that vowing to use cash is important.
This will keep you from going back to the credit cards to buy something you may not be able to afford.
If you set a savings goal of $1,000, vow to use that cash, and only spend $1,000 this Christmas… no matter how enticing that new TV looks 😉
I hope you’ll join me as we set out to save up for Christmas this year! Let me leave you with this last tip, don’t forget the extras. You may want to include in your calculations for Christmas, things like new decorations, lights, a tree, friends parties, ugly sweater festivities, etc. Each year we try to throw a little extra into our Christmas fund so that we can enjoy these types of things as well. It is all a part of the holiday season!
Tell me, how are you going to try and be more intentional about saving up for Christmas this year? Let me know in the comments below!