Christmas is coming...

Right around October, November, we start hearing, “Oh gosh, Christmas is coming and I am not prepared!” When people say this, sometimes they mean they aren’t prepared because they haven’t shopped. Or, they may mean they are not prepared because they haven’t even made a Christmas List. And other times, they may be saying this because they aren’t prepared FINANCIALLY!

When we aren’t prepared financially, we might find ourselves saying “Christmas is just so expensive!” “Well, it’s just because we have a big family and that’s what is so expensive.” “I wish money grew on trees!”

Now don’t get me wrong, I was in this place too, just a short few years ago.

What I started to realize was that Christmas happens at the SAME TIME each and every year. If I am not ready for it, it is because I haven’t prepared for it. That is my fault, not anyone else's fault. I needed to prepare better! Over time, I have found that there were three main things I did to prepare myself for the holidays.

What did I do to prepare for Christmas?

1. I start my Christmas savings in January every year. My goal each month is to set aside about $100 every month. This goes into my budget. At the end of the year, I have about $1200 set aside for shopping, decorations, work gifts, potlucks, etc. I usually don’t use all of this money. Any additional that I have after Christmas goes ALL to debt! Once I am 100% debt free, this will go to my emergency fund or savings for a down payment on a home, whichever I am working on at the time.

2. Christmas List - I am often surprised how many people don’t have a Christmas List. How do you know who you are buying for? How do you remember who you've already bought for? Also, with 6 nieces and nephews growing at a rapid pace each year, I have to get their current clothing and shoe sizes because I forget or get them the wrong size. A list helps me to get and stay organized. It also helps me to budget. When I have my list completed, I then assign a dollar amount to each name and stick to that amount. This helps me from overspending, but also makes it fair, especially among siblings. We all know where that can lead if Sammy gets 5 gifts and Sally gets 3! Also, I keep my list on Google Docs so that I have it with me no matter where I may be. This is really helpful especially when I see something I like for a particular family member. In a quick moment, I am able to see if I've already bought something, what size they are and what I budgeted. It is a tremendously helpful tool!

3. Shopping for Adults in the Family - Our family has changed the way we do Christmas gifts a few years back. Instead of buying gifts for every adult in the family we have a few ways we have kept costs at bay and still kept the “fun” of gift giving.

• White Elephant: On one side of my family, we no longer do adult gifts. Everyone brings a White Elephant gift instead and puts it under the tree. The way we play White Elephant is just a gift that is funny, is unique or really out of this world! For instance, one year there was a large golden chicken statue in one of the gifts, other times it was the As Seen on TV items that made the list and last year the blanket (made to look like a flour tortilla, and a burrito if YOU were in it) was the most ‘stolen’ item of the group. We limit the gift to about $20 per gift so that it is more fun than anything. This is the game we all look forward to each year, surveying every store for the most unique or funny item we can find!

• Name Draw: Another part of my family will put the adults names in a jar at Thanksgiving and everyone draws names. Each person gets one name and can spend up to $25 or $50, whichever is decided for that year. You can’t draw your own name though! This is really helpful from not only a financial perspective, but also from a time management perspective. The holidays are busy and only having to buy ONE gift instead of 20 really does cut down your TO DO list.

• Lottery Gift: We have also done this in the past. Everyone brings a gift worth a certain amount. Then, we draw numbers. It kind of goes similarly to the White Elephant game where you can steal a gift a certain number of times before it is frozen. Only, these gifts are nice gifts or gift certificates. It still accomplishes the fun, keeps the finances minimal and everyone leaves with a very nice present!

Preparing for the holidays can seem daunting. When you put a plan into place in January, the sky's the limit! If you have never done this before, start small. Try setting aside $50 each month for your Christmas Fund. Don’t touch that money for any reason and you will be prepared when December rolls around.

If you are worried about Christmas this year and not sure where you are going to come up with the money to do Christmas, there are alternatives! Instead of buying gifts for loved ones, trying making or baking gifts. People always remember the thoughtful gifts because it made them feel special!

One of my fondest memories during the holidays was baking cookies. We would play old Christmas Music, bake cookies from midday until late in the night, with my Mom, Godmother and brothers. It is still, to this day, one of my very favorite things to do. I remember we would make platters of cookies and give them as gifts. We, the kids, were so proud of our cookies and excited to give the platters to our friends and families.

If you are struggling with money, you can also pick up a seasonal job or work independently doing things like Instacart, Uber Eats, Shipt, or dog walking. Picking up an extra 10-15 hours a week can gain you an upwards of $800 or more in a month! This could easily pay for a very nice Christmas and if you keep the job past the holidays, you can pay down about $10,000 a year in debt!

And remember, no matter where you are starting from, you CAN reach your financial goals! If you need a little help, I am here to be your guide!