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Are you ready to save money in advance for Christmas this year? Then, you are in the right place. With this Christmas Budget Challenge, you will be prepared for holiday spending and not be scrambling at the last minute.
Get prepared for a debt free Christmas!
Tired of overspending? This challenge is perfect for you.
Tired of the post-Christmas debt hangover? This is exactly what you need.
The Christmas Budget Challenge is wonderful for someone who wants to take control of their life both their time and their money. Plus enjoy a debt free Christmas!
In 2017, the average family spent $900 on Christmas, according to Statista. In order to have a debt free Christmas, you must save up in advance. Remember, saving money is setting money aside today to be used for a future purpose.
In order to have less stress around Christmas, the goal to fund your Christmas money the week of November 1st. That way you have plenty of time to shop around, get the best deals, and be the first one with wrapped presents.
Please note…Just because you may finish your Christmas shopping early, doesn't mean it is a free pass to keep spending on those last minute items. That will wreck every Christmas budget.
Christmas Budget Challenge for a Debt Free Christmas
All of the Christmas Budget Challenges will be based off the average family spending $900 each year. Just remember that number is collective of gifts, food, decorations, and any miscellaneous holiday items.
Because every family and their personal finance situation is unique, we will break this challenge up into 3 Christmas Budget Challenges. You choose which will work best for your family.
Related Post: 8 Simple Tips to Stay on Budget at Christmas
Let's discuss how these numbers we decided for the Christmas Budget Challenge. First, the average family spent $900 on Christmas in 2017, according to Statista. Regardless of whether you think that number is jaw-dropping high or way too low. That was the average amount spent. Those are the statistics. Collectively, over one trillion is spend on the holiday season.
Just a side note…The average spending of $900 at Christmas includes amounts put on credit cards that weren't able to be fully paid off.
This challenge is about having a debt-free Christmas and holiday season.
Don't think it is possible to have a fabulous holiday season without debt? Let me tell you… IT IS POSSIBLE! We have done it each and every year. There is no post-hangover stress or guilt on how much was spent.
Average Christmas Budget – $900
For the first challenge, we are going to be average. Plain, old average. Nothing fancy here. We are making the assumption that you plan to spend the average amount as each American family did in 2017. The goal is to save $900 by the week of November 1st.
|Average Plan||Weekly Amount to Save|
Frugal Christmas Budget – $450
Next, the frugal Christmas budget is half of the average amount spent on the holidays. A fabulous Christmas can be put together for under $450. Personally, we have always limited the number of gifts. Simplicity is key.
|Frugal Budget||Weekly Amount to Save|
Luxury Christmas Budget – $1,800
Lastly, the luxury Christmas budget is for someone who has the capability to spend more and wants to make sure it is done without debt. By saving in advance, there are so many more options available when the holidays roll around. You plan to save $1,800 for the holiday season.
|Luxury Plan||Weekly Amount to Save|
Key Dates for 2018:
Based on when you are reading this post will determine how much to start saving by date.
30 Week Plan: April 9, 2018
23 Week Plan: May 28, 2018
18 Week Plan: July 2, 2018
15 Week Plan: July 23, 2018
9 Week Plan: September 3, 2018
Where to Save Christmas Money
Now, it is one thing to say, “I'm going to start saving money for Christmas this year.” It is a completely different to actually act on it. The BIG recommendation is to get it outside your temptation to spend!!
There are two options on where to save your Christmas budget money.
The first option is an online account. Personally, this is my favorite. Simple reason on why. It is harder to access the money (it takes 2-3 days for the money to be transferred back to your local bank account). Plus, it is simple to set up an automatic transfer and forget. Then, money is set aside in a separate account until you need the funds.
The second option is to use a cash envelope. This one comes with the temptation to dive into the money set aside for a debt free Christmas. Personally, I think the prettier the envelope, the likelihood to use it goes up. Check out the list of Best Cash Envelopes.
Are you up for the challenge?
Start saving now in order to have a debt free Christmas.