Yes, you read that correctly we are talking about 2021 Christmas. I spend more during the holidays then any other part of the year excluding vacations. I have nieces, nephews, kids, wife $$$ it all adds up. If you are like me, you can drop a lot of cash on the holidays. Maybe you don’t have it and are using your credit card? Couple of parties, a bottle of wine or 3, cocktails at a company party (remember those?). It all adds up and here is a simple strategy you can start now that will provide you with the cash to do it.
Get an envelope, or an old book, or a jar some type of container. Every Friday until the end of the year put $20 in it. Even if you have to actually go the bank and withdraw cash, do it. Then forget it until the next Friday. If you started this week that would be 49 Fridays until the end of the year @ $20 = $980.00.
No maybe you spend more than that I do. Regardless, what this does is it gives you a target (ideally we hit $1,000.00) of cash. If you paid everything CC, fine deposit your money back into the bank. If you are going shopping physically, even better. Leave your CC at home and bring your envelope and pay cash for the presents. This is an introduction to what we call a “sinking fund” I will be doing another piece on those soon.
For those of us with Anxiety this “cash in the draw” is going to help come the holidays. You’ll know it’s there and you’ll know its purpose was intended to be spent on the holidays. That will provide some relief to one of the most stressful times of the year and one of the most stressful aspects, the financial burden.
You can adjust the amount up or down if you want, I chose 20 because starting now gets me close to 1,000 and that’s a nice lump sum to have to spend on the holidays. You can start this whenever you want, the key is consistency. EVERY FRIDAY you put the cash in your envelope or wherever you secret hiding place is. You don’t withdraw it until you start spending on what the money was intended for.
You can do this, it’s a simple yet tried and true financial practice. No it’s not very sophisticated, but it doesn’t need to be. Sometimes the simplest solutions are the most effective!
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