As I write this, the fire is burning and I'm enjoying my tea. It's Christmas Eve 2022 and I'm already planning for 2023. All of my gifts have been purchased and wrapped. Cards are mailed out. Chex mix made and distributed. Cookies eaten. The only thing left to do is celebrate with loved ones.
Once the tree is empty and we transition to the New Year's Eve festivities, I want you to reflect on the year. Was it stressful? Did you over spend? Are your credit cards pushed to their limits? Or was it a fantastic, peaceful time?
Many people have the weekend off, and some lucky souls get the rest of the year off. This is a great time to recharge and refocus on your 2023 goals. Go back and see how much you actually spent. Dig up the receipts and review your online bank transactions. It doesn't matter what the number is, we're simply taking inventory. Avoid beating yourself up here because shame has no place in our finances. Now follow this simple formula:
Total Spent on Christmas in 2023 ÷ 12
Got that number? Good! That's how much you need to put away each month to have a fully funded Christmas next year. For example, if you spent $1,200 you will need to put away an extra $100 each month. Granted, you may spend more or less. The point is to have a goal and not have to rely on our credit cards to fund Santa's endeavors next year. This concept can be applied to every major holiday so if you don't celebrate Christmas, it still applies to you. Spoiler alert: these holidays keep coming every. Single. Year. It's not a surprise expense.
Where on earth are you going to find extra savings? Lucky for you, I'm launching a grocery budget challenge to whittle down that expense in January. If you need more accountability and personalized help, let's get booked for a free consultation for financial coaching here.