3 Steps to a Frugal Christmas - Start Now |
Posted: August 14, 2020 |
Christmas is an extremely stressful and expensive time of the year. And it can put further financial pressures on those already suffering. Did you know the average American adult spends a staggering $942 on Christmas gifts per person. Now that's an alarmingly high statistic, but remember, it's an average. But it does highlight an important point. It's a time of year where we are expected to part with our cash. And often this can be rather detrimental to our financial wellbeing. I remember when I was a student living on pasta and beans. I had barley enough money to feed myself and Christmas was just around the corner. So I made the cardinal sin of extending my student credit with my bank. This was to purchase presents for my family, who later said they would have been just as happy with a thoughtfully worded card and the pleasure of my company. Often these pressures are self imposed and it means we stretch ourselves beyond our means. So is there a solution to the age old problem of the Christmas expense? Well, beyond winning the lottery or foregoing the festive season all together - not really. But there is most definitely a way to soften the blow. And that my friends, is by having a frugal Christmas. Step 1: Plan, Budget and SaveGood finances start with a great budget. Unfortunately, there is no way around this simple fact. You need to able to account for what's coming in and what's going out - every month. And Christmas is no exception. In fact, because Christmas is usually such a hectic time of year, with so many additional costs, I always prepare a separate budget for the entire month of December. This way, come Christmas, I'm left with no surprises. I write down any additional income I plan on having for the festive period (more on that later) and every cost. Using the simple zero-based budgeting system I tweak the expenditure side of the equation until I reach zero. This is how the zero-based system works, you account for every dollar, and leave nothing on the table. I have done things this way since graduating from University and it has stood me on good ground. Step 2: Start EarlyI mentioned earlier about additional income. I don't usually get a second job over Christmas (although I have in the past) but rather put a little time into making some additional income online. I use a combination of user-testing websites, surveys and cashback to squeeze every available dollar. The key to this method is starting early. If you have a full year under your belt, you would be surprised how much extra you have to spend. Last year I was plus $400 over my budget - and this meant Christmas was much easier financially than usual. Planning ahead is also a great way to be frugal. The more time you have to tweak your plans, the more creative you can be with your spending. This is a great way to save on costs. I always source second hand decorations and make sure to get the best deals on gifts. Step 3: Above and BeyondFinally, to truly have a frugal Christmas and rock your finances, you need to go above and beyond the call of duty. This often means reaching out to friends for favours, working a few extra shifts before the holiday, and getting your hands dirty. And the more frugal Christmas tactics you can employ, the better. Once you get started with one, you won't be able to stop. And when I say getting your hands dirty, I mean getting on board the crafting train. I was able to make a bunch of my greetings cards last year, and plan on the doing the same this year as well. Greetings cards are such a waste of money, and it's so thoughtful if you make them yourself. It really put a smile on my mums face. I won't be winning any craft awards, but it really is the effort that counts. Christmas doesn't need to break the bank. It's always going to be a bit harder than normal months, but planning ahead should give you plenty of opportunity to be frugal. And that means spending less money, and more time with your friends and family. Heres to a very Merry Frugal Christmas to you all.
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