Hello!

50 days until Christmas! Christmas is, hands down, my favorite time of the year. Growing up in Antigua, we didn’t have Halloween or Thanksgiving celebrations. Christmas was the highlight of the year. Carnival and Easter were close seconds, but nothing tops Christmas. Thinking about the lights, the music, the gifts, and the gatherings all bring a smile to my face as I write this post.

The reality, which I’m sure comes as no surprise, is that the Holiday season can also be a difficult time of the year for some, both emotionally and financially. We’re faced with the unrelenting pressure to show up and “show out”, get bragging rights for the cool Apple device you bought for your kids, a designer purse for your wife, or the new gadget for your hubby.

It’s easy to get caught up in the excitement of the holidays. I’ve been there. As have lots of other people.

Numbers indicate that Americans spend, on average, roughly $ 1,000 on Christmas gifts, and some even incur debt of up to $1500 on holiday spending. This can leave you in a hole or push you into some seriously unwelcome debt in the New Year. Let’s look at the negative impact this can have on our financial journey.

A $1500 credit card bill

Interest Rate: 21.9%

Minimum Payment 3% of balance – $45

Pay Off Balance: 144 months

Cost in Interest: $1830

Total Amount Paid – $3330

Minimum monthly payments mean paying for purchases 2 times over; couple this with compounding yearly balances, and it could take decades to eliminate the debt. A scenario like this can quickly take the joy out of a joyous season.

Let’s stay on the bright, using these tips for getting a handle on holiday spending.

Make a List. Sounds clique. But really, make a list of the people you’d like to shower with a gift.

Set a Budget. You guys know I’m not a fan of the word “budget”; they are like a diet, and no one likes dieting. That’s like life without ice cream – ditch that thought. Instead, we’ll call this our Holiday Spend Plan.

Shop Early and Often. Last-minute shopping tends to lead to overspending. We have limited options and time, so we take the first thing that comes our way, which means we’re using less of our bargaining power.

Maximize Rewards. Take advantage of credit card perks and make consistent payments to pay off the balance. Wells Fargo and other financial institutions offer incentives to debit card users; check with your bank for cash-back reward offers.

Use my handy gift planning guide to shop around and spread your purchases across the next few weeks. My Challenge to you is to enter 2024 without any holiday spending debt. Can you do it? Yes, you can.

Click to access holiday-gift-planning-list.pdf