Simple Secret to a Debt Free Christmas Next Year

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What if I told you there was a simple secret to a debt free Christmas next year? If I gave you a hint – that you needed to start in January – would you be interested?   

Katrina, what are you talking about?  How can you possibly have a debt free Christmas? Why in the world you start planning for that in January – that is 11 months away from now? Christmas just ended, do I really need to worry about next Christmas already? 

Yes, yes, and yes!  If you want to have a debt free Christmas next year – yes! 

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Christmas Just Ended

Yep, it’s no surprise, Christmas just ended, and if you are anything like me, you might be packing up your tree, taking down all the Christmas lights, and putting away the stockings. 

I hate admitting this, but I love to put away Christmas decorations.  What about you?  I love my Christmas décor, but I love to put it all away and have my house back in order.  Do you feel the same way I do?

In fact, I feel bad about just how much I love to pack up my decorations.  My oldest son hates how much I love to put it all away.  He loves all the Christmas decorations – but I also think he hates the actual job of putting it all away more than he likes the décor.  Helping around the house is not his favorite job – but then again, what teenager likes to do chores?!

Did You Overspend This Christmas?

Regardless, Christmas is over and I’m curious how you feel.  Did you spend too much money this year?  Are you feeling guilty about getting caught up in the Christmas Spirit and spending money you didn’t have?  Or, did you stick to a budget and are you feeling proud that you pulled it off without overspending? 

Christmas Spending Plan

If you are like most Americans – you probably spent too much on Christmas.  Based on NRF’s annual consumer spending survey, Americans spent an average of $1,007.24 last year, up 4.1 percent from the previous year ($967.13)

That’s a lot of money to spend during Christmas!  The actual amount of money is not the issue, it’s the plan behind it.  If you didn’t have a plan of how much money to spend then you most likely spent too much.  Did this happen to you?

Debt Free Christmas Plan

There is a simple secret to a debt free Christmas next year.  Anyone can do it.  No matter how much money you have to spend.  I promise, if you follow this secret you will not have any regret when December 26^th rolls around. 

You can sail into the new year with complete confidence that you did not overspend and knowing you won’t have any Christmas presents to pay off in the new year.

Wondering what the simple secret to a debt free Christmas next year is?  Are you sure you are ready? It’s super simple.  I promise. 

Simple Secret To A Debt Free Christmas Next Year

The simple secret to a debt free Christmas next year is this – you have to start saving early, in January – or as early as possible.  If it’s later into the year, you can still save for a debt free Christmas, you will just have to save more each month you have left until Christmas. 

Obviously, it’s much easier on your wallet if you can have a whole year to save instead of only a few months.  Making sure to save each month is the key. You must save every month leading up to Christmas, then, when Christmas arrives In December, just like it does every year, you will have a stockpile of cash saved. 

See, I told you it wasn’t complicated.  The simple secret to a debt free Christmas next year is not difficult, It just takes a plan.

Christmas Fun

How We Save For a Debt Free Christmas

Let me explain the simple secret to a debt free Christmas and how we save for it every year.  My husband and I sit down at the beginning of every month and do our budget. 

We call it a Budget Committee Meeting – and if you are a follower of Dave Ramsey, you know just what I’m talking about.  Dave suggests you sit down and budget your month together as couple, so you both can be on the same page.  It works for us and we never miss a month. 

One of the line items in our budget every month is Christmas.  We save $100/month for Christmas every single month.  You can budget any amount you want each month, but the big key is to save something towards Christmas every month. 

Once you save it, don’t touch it.  Leave it alone.  Pretend it’s not there so you won’t be tempted to spend it on something else. 

You can even consider setting up a savings account just for Christmas.  Each month you can transfer the money you want to save into that account. Let it accumulate all year long so that when December arrives, you have money to ensure a debt free Christmas. 

How to Determine How Much To Save For Christmas

Determining how much you need to save for Christmas is simple.  Again, remember, the amount will be different for everyone.  Look at what you spent last year.  Add it all up and start there. 

If you overspent, take that into consideration. If you skimped on some things and want to have more money to spend in that area, make sure you make note of that. 

After you consider all these things then you need to do these 5 steps to determine how much to spend next year.

Steps To Set Up Your Christmas Budget For Next Year

1. Make a list of everyone you need to buy gifts for including family, friends, co-workers, etc.
2. Next, make a list of all the fun things you might want to do during Christmas such as a play, show, event, etc.
3. Then, make a list of all the non-gift Christmas related expenses you can think of like: cards, photographs, stamps, decorations, etc.
4. Once you have all the above items listed out, create a rough budget and determine how much money you think you will need for next Christmas.  Obviously, next Christmas is a year away, so exact numbers are not necessary at this point – but a rough idea of how much you want to spend on Christmas is what you are going for. 
5. Divide that overall number by how many months you have until next Christmas.  The resulting number is how much you need to save each month in order to ensure you have a debt free Christmas next year. 

Now that you know the simple secret to a debt free Christmas next year, you can implement your debt free Christmas plan and ensure you have enough money for Christmas next year!

Ways To Save Money & Make Extra Money

Wanting to save money can be tricky when you don’t have any money left at the end of your budget to save.  If you need some ideas of ways to make some extra money so you can start saving for Christmas right now – read  these posts.

• 5 Easy Ways For Moms To Save Money – Today!
• 10 Easy Ways To Make Extra Money From Home
• 4 Must-Have Apps That Save and Pay You Money

Again, make sure you snag my FREE Chrstimas BINGO and celebrate the fact that you figured out your Christmas budget for next year!

Want to remember this post?  Pin this post, Simple Secret To A Debt Free Christmas Next Year, to your favorite Pinterest board now!