You betcha!! We can do this and forever change Christmas and give new meaning to Happy New Year. It’s March and it’s time.
I did something last week that I’ve never done previously. I opened up a Christmas savings account at a local Credit Union (CU). I’m earning 2% on my deposits (maximum deposit of $4k) up until November of this year. In November, the CU will close the account and send me a check for the balance in the account and cha ching, my Christmas spending has been financed with all equity (in this case cash), instead of all debt. That’s corporate finance lingo for raising the capital to fund a project. The “project” is Christmas.
Every year I tell myself I’m not going to charge my Christmas gifts to my credit card and guess what? Every year I do. When January rolls around, the anxiety kicks in when the bills start rolling in. So much for a Happy New Year. I want my next Christmas to be a debt free Christmas.
Where the heck can you earn 2% these days? Google it. Opening balances on these type accounts can be as low as $20 with suggested monthly deposits of $20. Bankrate.com has stated that banks may have stepped away from offering these type accounts. Check out credit unions as a starting point. Some are still offering the accounts. Be committed, because fees could apply if you fall off the wagon.
Every day on Twitter personal finance bloggers are devoting incredible amounts of time blogging about getting out of credit card debt. Are we Americans addicted to credit card debt? Could a Christmas savings account be our twelve step program to stop overspending at Christmas? It’s a start.
We can do this! Repeat after me: #debtfreexmas. Email or tweet me and tell me when it’s checked off your to-do list. Add this to the list of my other baby steps, but this step is definitely worth taking. I also like this concept for vacation savings. Call it your emergency fund for both Christmas and vacations.
Paula Cashflow’s mission is to build wealth, slowly and steadily. Reducing and eliminating credit card is an essential component to a wealth building strategy.
Work with me on this one and try it out. You may just surprise yourself. If anything, you are now re-focused on finding ways to decrease usage of a credit card. Sit down and plan out your Christmas spending now. Don’t go over-board. Set aside the funds now or each month and position yourself to celebrate the 2016 New Year with personal financial bliss.
Because it’s about life and how you live it!
In the spirit of financial well-being,