Debt Free Christmas 2009 by Craig Ford
Christmas is coming.Last Christmas I was amazed at the number of people who do not have debt-free Christmases. Iguess this couple is ‘normal’ as they celebrated their first debt free Christmas in 10 years.I am a big proponent of thinking and planning ahead. This is self evident in my post about planningtoday for tomorrowand my post about beginning with the end in mind.2008 was a stunning reminder of the Biblical truth that the borrower is slave to the lender (Prov.22:7). There is no better time to decide that 2009 is going to be a debt-free all cash Christmas.
How can you have a 2009 debt-free all cash Christmas?
1.
Evaluate your motives and beliefs about Christmas.
If you habitually overspendduring the Christmas holidays I suspect there is a reason. Sometimes we give gifts beyond our means to give a certain impression of our financial status. Sometimes wegive extravagant gifts because we fear rejection. Sometimes we give expensive gifts because we are a giver at heart and giving is our love language. Once you have your motives in check you can move along.
2.
Have an open and honest family (extended also) discussion.
Many families speak about their dysfunction when it comes to talking about money. However, it can be anextremely healthy process getting an idea of who people are buying for andapproximately how much they are spending. This would alleviate all the awkwardnesswhen Uncle Joe gets Aunt Sally a pen and Aunt Sally gets Joe and all expenses paidvacation to Jamaica.
3.
Don’t feel embarrassed about suggesting changes.
If your family giving practices areover the top or if your family is growing with babies and spouses, suggest an alternative.Perhaps you could try drawing names this year. If someone is disappointed because youcan’t afford to give them more, that is their issue, not yours.
4.
Decide on a budget.
Once you have had an open and frank family discussion you arenow at the point where you can set a budget. Here is how I would set the budget. Take aguess at what you spent for Christmas last year (let's assume that is $500). Now take thatnumber and divide it by seven (number of months till Christmas). That would be about$70 per month you would need to save. Decide if $70 a month is a reasonable amountthat you feel good about. If yes, then your Christmas budget would be $500. If,however, you cannot scrape together $70, your total will need to decrease. If you havemore you can and want to save then by all means save.
5.
Allocate a budgeted amount to individuals
. Take a piece of paper or spreadsheet andwrite the names of people you might want to get gifts for. Prioritize the list with thoseyou most want to buy for at the top. Put a budgeted number beside each individual. Just be sure your total equals your budgeted total. If you are having trouble making the itemsmatch then (a) recheck your motives (2) consider #8 on this list.
6.
Create a Savings Plan.
Now that you have decided to save $70 per month you shouldget an envelope and write Christmas Money on it. At the start of every month put your $70 into that envelope. Alternatively, if you aren’t comfortable keeping cash at your house or your total will be quite large you can just set up an extra account at your local bank and have them automatically transfer your $70 per month into a separate account.
7.
Create a Spending Plan.
Your spending plan will depend on your savings plan. If youare saving cash then every time you get a Christmas gift you would use cash only from
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