Have you paid off your 2020 Holiday bills?
We are almost a third of the way through 2021 so I want to circle back on how you are going to pay for fixed social expenses moving forward. For those of you new to our group, one of the core topics that we cover is financial literacy. We encourage you to learn all that you can about your personal finances. We want you to develop a budget and ‘social expenses’ is one category that I recommend that you work on. We want you to begin using a budget so that you can always cover the core categories that you need to survive.
Social expenses? What does that mean?
This is my title for those celebrations that are repeated every year; birthdays, Christmas or other religious holidays, anniversaries, graduations, etc. These dates are fixed and you know you are likely going to be paying for something related to these events. A religious holiday is the event that usually involves the most people on one day so focus on that first.
I know that not everyone has the means at this time to do this but start thinking about the process and try to work in small expenses so that you can really focus on this when you are in a better financial state.
Let’s use Christmas for our example. We have 8 months left before we need to have our gifts ready. I have attached a worklist that you can use to pencil in who you need to save money for. Go ahead and pencil in a gift idea as well so that if you see a fantastic sale you can save some money. Think hard and include everyone that you usually share a present with. Family members, friends, work or church events, etc. If the length of the list is scaring you, start removing people from it! It is OK to do this so that you can focus on those that are truly in your gift giving circle.
Let’s say that you have determined that you need to save $400 between now and December. $400/8 months means that you need to setting aside $50/month in a savings account or in a money envelope so that when you see a great sale, you can start buying things on your list. You cannot take money out of this stash unless it is truly for someone on your gift list. This is NOT your emergency fund.
So focus on paying off any remaining amount of 2020’s holiday bills so that you can begin planning for 2021. Start with your holiday celebration but then start working on birthdays and other fixed events. Once you get started, you will see that you will have less stress because you have planned for these events.
Click on the Resources tab and use Holiday Budget Worksheet.