About the Author:

Joe DeGroff is a former financial advisor who is working to affect a radical change in the way people think about their life and their money. Joe believes people should use their money to help them to fulfill their purpose in life and do what they are passionate about doing. Learn more about Joe and his ideas at www.TheAsteroidProject.com

There is a huge reason that most people spend the Christmas season so stressed out – MONEY. At some point over the past few decades, we have become so caught up with what the latest “must-have” gifts for our kids/friends/significant others/family, etc, that we lack common sense when wondering if that person really needs this item.  As such, now we have seven year old kids that have cell phones and PS3’ s, but their parents are living in a budget deficit every month.  It doesn’t make sense at all, but this is where we are.  It is certainly no wonder everyone is in such a crass mood as soon as Thanksgiving finishes up and the “ shopping season” begins.

While it may seems a little early to start thinking about Christmas, as financial advisors, it never ceases to amaze us how many people forget that Christmas comes in December, and they end up wandering aimlessly around Wal-Mart at 3 a.m. on December 23 trying to finish up their shopping.

**Can’t you just imagine the ticked off 45 year olds running around the mall and acting crazy because their precious Johnny needs more blinking lights or video games**

We don’t want to be that person and we want to help make sure you’re not either!  Deal??

So…we are young and money is tight: how exactly do we prepare for this?

Establish A Firm Budget

And when we say firm, we mean it!  Make a list of the people that you HAVE to buy for, and what parties you HAVE to attend.  This really needs to be thought through, and you should probably budget that you’ ll end up forgetting something.  we are a big fan of creating wiggle-room in our budgets because we tend to forget things from time to time.

Create A Game Plan

Say you are spending $400 on Christmas. We have eight weeks. That is $50/week and you will have everything you need with a few days to spare.  If you spend the time to think about what you want to buy for everyone, this will be quite easy.  Maybe you want to get everything done at once, but you do not have the cash. If you do put Christmas on credit, buy early (say NOW) and have it paid off before December 25.  Do NOT allow yourself to owe money on the gifts you are giving-you cannot enjoy it this way.  The last few Christmas’ at my house have been awesome, because we paid cash for everything and had it done early. There was no hassle, no running around, and no craziness, and this is the way I want it from now on.

Of course, this is all predicated on the fact that you have not already saved any money for Christmas.  We have already spoken about the need to have short term savings in our budget every month.  Consider these money-saving strategies:

1)  Have a “ gifts” envelope that you put cash in when you get paid. Little by little, it grows all year long.

2)  Start a Christmas Club at your bank.  A Christmas Club is simply an account that you set up at your bank that is designated just for this reason: you put a few dollars in every few weeks, and in October or so the bank sends you a check with what has been deposited.  Most people I talk to want their savings to be “ automatic,” so that becomes an easy way to have a few dollars taken automatically out of each check all year long, and you will not get surprised that December shows up as soon as it does.