It’s Never Too Early To Plan For A Debt-Free Christmas

Updated: Jan 26

Learn how to cash flow next Christmas, NOW!


By Matthew Collings

This article may contain links from our partners.

You thought retail stores started talking about Christmas early?

Are we talking about Christmas in January? I haven’t even put the decorations back in the attic yet! Seriously, and we talking about next Christmas already? Yes, we are!

The Christmas “Out of mind, out of sight” mindset is a major blow to bank account mistake

Christmas is supposed to be the time of year that brings so many people joy and cheer. It’s the time of holiday carols, festive desserts, and ugly sweater parties. It's a family movie on the couch and a warm fire blazing in the fireplace. It’s time for dad to get up on the roof and outshine the neighbors with the best light display on the block.

But what happens after the tree gets put away, the lights go back in the box, and the credit card bills start to roll in?

Sound familiar? Like so many people, Christmas sneaks up on us, and we often ask ourselves how we will afford everything that comes in December? For a lot of people, going into debt at Christmas is just normal.

According to a 2019 Christmas spending study, The average American spent $882.45 on Christmas gifts, food, decorations, travel, and other miscellaneous holiday-related expenses.

22% of those shoppers admit to going into debt to finance their holiday spending. Of those shoppers who went into debt to finance Christmas, 27% had no clue how they would pay off that debt. That's insane! There has to be a better way to afford the holidays.

Guess what? There is! And it starts NOW!

What would happen if we actually planned for Christmas, starting in January?

A few years ago, we were part of statistics of people who financed the holidays and no clue how we would pay off the accumulated debt.

At The Money Rant, we passionately believe in educating our readers on how to pay off debt, save money, and build wealth. Therefore, we fully believe that financing the Christmas season is not the best way for anyone to spend their hard-earned money.

You have to start thinking further down the road financially. Yes, it’s only January - but why not use the next 12 months to take small steps towards preparing for next Christmas. How amazing would it be to show up on December's doorstep with a solid plan in place for holiday spending? Wouldn’t it be great to not stress about money while Christmas shopping?

Here are three simple steps to plan for a debt-free Christmas!

Step 1 - Commit NOW to a debt-free Christmas!

You have to make a decision now to have a debt-free Christmas! Tell yourself that credit cards and financing gifts isn't an option. Sure, all of those “no payments for 90 days” in December look enticing. But how do they feel come March 1st, when your first payment is due? Tell yourself NO to financing next Christmas right NOW!

Step 2 - Make a Christmas budget.

If you are unfamiliar with making a budget, read our article on budgeting. Then download our FREE zero-based budget tool. It’s essential to get into a monthly budgeting habit, but you also need a separate budget for Christmas. December naturally brings about excess spending. Be sure to think about and budget for things like:

  • Extra meals

  • Extra gifts (teacher gifts, office gifts, secret Santa, etc.)

  • Holiday travel

  • Christmas decorations

  • Christmas parties

  • Giving

  • Higher utilities

Step 3 - Save A Little All Year-Round.

Once you have created your budget, make a plan to save and put it into action. If your total budget comes out to $1200, the goal is pretty simple. Put $100 away each month. By the time December rolls around, you will be ready to enter the Christmas season financially stress-free!

Cash flowing Christmas isn’t hard. It just takes discipline and commitment. Think about how good it will feel next December 26th when you realize you made it through Christmas, debt-free!

So kick those high-interest credit cards to the curb and start cash flowing next Christmas, TODAY!

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