Christmas is in the air.
A few more nights and it’s already Christmas!
It is a season of parties, gift giving, and 13th month pay (plus Christmas bonus).
Many are very excited to receive gifts and cash from their ninongs and ninangs (godparents) but many are also thinking how will their budget fit for their ina-anaks (godchildren).
Hopefully, at the end of this season, we will not only let our money cover all the expenses but also be able to save and invest a portion of it.
This article will discuss the 3-Step Guide on How to Set-Up a Christmas Fund to enjoy this season debt-free and worry-free:
- Set-up a BUDGET.
- Make a LIST.
- STICK to the budget
STEP 1: Set up a Budget.
It’s Christmas! And everyone is so happy and on a buying spree!
You just received your 13th month and Christmas bonus!
Everything is on SALE!
You look at the right, you see a 50% END OF SEASON SALE!
You look on your left and there is a big BUY 1 TAKE 1 sign.
But before going on to your DESERVED Christmas Shopping Spree, DECIDE FIRST how much will you will spend this Christmas Season, a.k.a SET-UP A BUDGET FIRST.
If you have read my article, How to Set-Up a Play Fund and How to Budget the Easy Way, you know that you SHOULD NOT SPEND 100% of your BONUS on this HOLIDAY.
My suggestion, is to save at least 20% of that bonus. Open an investment plan if you haven’t done it yet.
Remember that time, last year when you told yourself that you will open a savings account for good? Or the time when you said that you will start an online stock account?
If you already have an investment account, use it to buy more stocks or units.
Now, if you really have a big bonus, use it to invest in properties or in a business.
JUST DON’T SPEND 100% OF IT!
Don’t use your Credit Card (here is the link to my article 3 Ways to Maximize your Credit Card), pay in CASH. (Use only your credit card for points and rebates but treat it as if you are paying in cash).
Don’t be deceived by the 3-6 months installment schemes.
Christmas is a 1 Day Event.
You don’t want to pay for the next 3-6 months for that!
3-6 months after Christmas, you want to think about Valentines and Summer Vacations.
Remember, if you can’t pay in CASH, you CAN’T AFFORD it!
STEP 2: Make a LIST!
Make a list of all the people you would be giving gifts this Christmas.
Make a detailed list from your office mates, friends to your in-laws.
Make a list of all the Christmas Party that you will be attending. You need to prepare for the contributions and the cost of exchange gifts.
This is what people often forget that attending parties entail cost.
And because it has a cost, it should be part of the budget.
Place beside the names of the person you have written the gifts that you plan to give them or the budget of the gift you will buy for them.
REMEMBER: It’s not the GIFT, it is the THOUGHT that COUNTS.
You don’t need to impress your FRIENDS and FAMILIES at the expense of being BROKE.
The essence of Christmas is to celebrate it with your loved ones and not about how much are the cost of gifts that you will be giving.
And one more thing, DON’T FORGET TO INCLUDE YOUR NAME in the LIST! (you deserve a gift of your own too!)
STEP 3: Stick to the Budget
After listing the names and activities and placing the budget beside them, stick to the budget.
What should ADJUST is the COST OF THE GIFT per person and NOT THE BUDGET.
This is the hard part: who or what will you cross out.
If you would like to give everyone a gift and attend all parties, then find a way to stick to the budget!
Don’t use your credit card or take a loan.
Again, it is the thought that counts and you don’t want to sacrifice your Valentines or Summer Vacation for this.
TO RECAP, the 3 Step Guide in Setting-Up a Christmas Fund is as follow:
- Set-up a BUDGET.
- Make a LIST.
- STICK to the budget
By having a Christmas Fund, you can enjoy your Christmas Shopping Guilt-Free! And you will enter 2018, WORRY-FREE of DEBT!
And please, don’t forget to set-aside 20% of your bonus to your investment plan.
Always remember, every time you save and invest, you are paying yourself to not work in the future.
Wishing you an AWESOME CHRISTMAS SHOPPING SPREE!
Your Millennial Wealth Planner,
Harold Q. Gardon, CWP, CEPP
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