I know, 2020 isn’t even over yet and I have the audacity to start talking about Christmas 2021? How ridiculous!!! Stick with me, I promise this will be a short one and that it is well worth the read.

I want you to take 2 minutes and close your eyes and think about how the 2020 holidays have been feeling for you, specifically around your finances. Are you feeling stressed and overwhelmed? Are you already dreading the January 2021 credit card bills? Is this stress and worry stealing from some of your Christmas cheer? If you answered yes to any of those questions, it is time to take action now so that next year doesn’t feel like this. Take action now so that you can be fully present and enjoy the holidays next year without any financial stress.

1. This is going to be a little painful but stick with me. It’s time to look at what this Christmas cost you. How much did you spend on gifts, decorations, holiday donations, food and don’t forget the holiday drinks! Check your credit card and bank statements and try to come up with your total. Now take a deep breath, because you did the hardest part.

2. Take a minute to evaluate if the spending is in line with what you want to spend next year. Oftentimes, adding it all up will help you to see that your spending is not where you thought it was.

3. Determine what you want to spend next year. This could be as detailed as mapping out a new number for each item you spent on this year, or it could be as simple as saying you want to spend 20% less next year. However that looks for you doesn’t matter, what matters is that you build a plan.

4. Go open up a savings account. If you can, give it a custom name to represent that it is for the 2021 holiday season. If it will be too tempting to have it at your current bank, look for alternatives. Be sure to pay attention so that you’re not adding any monthly bank fees. A few great options for Canadians are Simplii financial or Tangerine, these are both online, no fee banks that let you give your accounts custom names. 

5. Figure out how you will fund it based on your goal for next year. Here are some options:

a. Start selling items on FB or kijiji to make room for new items you received for Christmas. Stash the cash in your new account.

b. If you receive any bonuses from work, prioritize adding to your holiday account when you receive it/them.

c. Automate regular transfers to this account each payday (divide your annual goal by the number of times you are paid in a year).

d. Figure out some expenses that you can cut each month and transfer the amount you would have spent to your holiday account.

e. A combination of a few of these, or all of the above!!

6. Next year when the holidays are getting closer, look at your account and map out a plan to help you stick to your budget and be sure to truly enjoy your holiday!

-Sherry