Let’s talk about Christmas. Yes, I said it. Yes, I know it’s only October but now is the perfect time to start thinking about your Christmas budget.
The number one piece of advice I give out during the holidays is to never, ever put Christmas on your credit card. I promise you will regret it when the January bill rolls around. It can be so tempting to buy just one more gift for the kids or add just one more stocking stuffer and before you know it you’ve spent way more money than you ever planned to. My favorite quote from Dave Ramsey is “Christmas is not an Emergency.” It might FEEL like an emergency during the throes of holiday madness, but I promise that those extra gifts are not worth the 18%+ credit card interest you’ll end up paying for them.
The best way to tame an unruly Christmas spending habit is to set a budget before you ever buy a single gift. Start with the money you have available to spend and work backwards. Write down every single person you need to buy gifts for and include all the extras like Christmas cards, postage, charity, decorations, food, etc. Once you figure out how much you can spend on each gift and in each category, stick to it! This will give you the freedom to enjoy the holidays without worrying about overspending.
Serenity Melnick is a Registered Representative offering securities through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Legacy Wealth Management, LLC and Cambridge are not affiliated. Cambridge does not offer tax advice.
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