Source of all images in this post: Dall-E
Christmas is Great
January Bills...not so much
It always amazes me how many people overspend at Christmas. In the Pharmacy I hear a lot of complaints in January. In my province the government pays for seniors medications once they hit a certain amount paid in a year. Many seniors are paying nothing for their medication when June or July roll around and things are all covered until the end of the year then everything resets.
That means there is a huge rush to get all their medications before December 31st otherwise on January 1st there is a bill for their medication.
As a Pharmacist I know that the total yearly bill is going to be 3% of a persons income. If they pay in January they will just hit that 3% deductible that much sooner. BUT the issue is so many people overspend in December that in January they have no money to pay their bills and there is nothing left to pay for their medications.
I've worked as a Pharmacist for almost 30 years and I've seen it every single year!
I guess I'm lucky. Because I've seen so many people suffer from a lack of planning and restraint during the Christmas season that I think and plan very carefully for Christmas!
Perhaps you have heard this quote
"If you fail to plan, you are planning to fail."
"If you fail to plan, you are planning to fail." typically attributed to Benjamin Frankliln
Or perhaps you have heard this quote:
"Beware of little expenses; a small leak will sink a great ship."
"Beware of little expenses; a small leak will sink a great ship."Also typically attributed to Benjamin Franklin
Both quotes are useful when thinking about Christmas.
FIRST: Plan so you can be prepared!
There is no surprise that Christmas comes every December 25th. It is the same day every year. It shouldn't be a surprise that you will see relatives and likely have a large dinner type celebration. It also shouldn't be surprising that gifts will be given. However, very situation is different as are different customs. However, whatever your customs are you should be familiar with them by now .... even the smallest children know Christmas here in Canada 😉
Since you know it is coming. Since you know its expensive. Why not plan for it in advance?
My wife and I typically start planning for Christmas on December 26th. Most people are tired of shopping and Christmas by the 26th but that is when we get started. For us we know that we will need Christmas Wrap for next year..might as well pick it up when it goes on sale after Christmas. There will always be someone who needs a last minute gift idea. Luckily there are lots of prepackaged gifts available like perfume sets, makeup sets, shaving sets, bath and beauty sets, and so many more. In Canada they typically sell for $20-$50 and almost always get marked down 50-75% the day (or week after Christmas) to make way for new merchandise. Buy a few suitable for men, women, or children and stash them away hidden in the house. In that way there is always something for a secret Santa present at work, an uncle or aunt who is coming and you forgot a gift, doesn't matter if it is someone you don't see often it's nice to have something to give that doesn't necessarily need a lot of thought. Candy canes, cards, lights, etc all go on sale. If there was something missing from this Christmas buy it on clearance for next one 😁
Amazing at how bad AI is at actually spelling words
Of course there is also food to plan. Again, thinking in advance is crucial. In Canada turkey's always go on sale around Thanksgiving and freeze well until Christmas. Rather than get a ham at Christmas buy a whole or half pig and get it cut and wrapped in the early fall when ranchers start harvesting their animals before winter. Better quality meat at a much better price.
Then there are the special people in your life. Listen carefully during the year for what they need but never buy. Watch for sales and make a purchase well in advance of Christmas. With all the gifts and food purchased well in advance it means the actually time before Christmas can be spent enjoying the season instead of being busy fretting about what to buy and how to afford it!
Typically I'm done with Christmas preparation (or at least most of it) in early November. There is another really important thing to avoid overspending though.
Don't fall for the Christmas hype!
Second : Avoid the little expenses!
Christmas is known for all those little things that add up. Sometimes its a little trinket that you just know your aunt would love. Perhaps its a really cute ornament that would look awesome on the tree. Maybe you have dinner prepared but notice some yummy cookies on sale and think how nice it would be to put them out for the guests.
Avoid the temptation
Now another expense that comes around at Christmas time is a little harder to avoid.
Christmas giving to the poor
Every year there are various charities that ask for money.
The Salvation Army will have people ringing their kettles asking for money to support their programs for food and shelter for the homeless.
The mall will have an angel tree with names of children who won't have toys under their tree at Christmas.
There will be food drives for the Food Bank to help those who go hungry at Christmas
The Downtown mission will always be collecting to put on a Christmas dinner for the homeless and needy.
Now...
.... I'm very frugal with my money. Read any of my posts and I'm sure you will notice that I shave every penny I can off my expenses. BUT I do that so I have more money that I can give to those who need it. HOWEVER it is important to budget so I don't end up in debt! Every penny I pay in interest on a credit card is a penny I can't be giving to someone in need.
SO... Start setting aside money every paycheque to help those in need!
Some of the money I budget to help others goes regularly to my Church and its fund to help people in the community. Some I just let sit in a savings account earning interest until I find a good place to give it to. Typically there is money sitting there in December so that I can give it to the worthy causes all asking for my attention.
In that way I can feel good in December knowing I can help those less fortunate in my community AND know that I am staying within my budget.
Something to remember : There will always be the poor and less fortunate. It is important to help out where able but also remember that you are best able to help others if you are financially stable yourself. There is a reason that in airplanes they tell you "Put on your mask before helping your child". If you are in good shape you can help others. If you are struggling you can't help others. Please Give but plan in advance and give responsibly.
Sometimes you will have to say NO and that's OK
These rules aren't just for Christmas!
There are lots and lots of things that come up every year and they seem to catch people by surprise.
I have car insurance every year. Actually it is coming up at the end of this month. It will be $2400 that I don't want to pay. However, I put the money away every month in advance so the money is there when I need it. The same thing for my property taxes of $4800. House Insurance $3800. They always come due. They aren't surprises. Plan in advance or Plan to fail
I could go on about planning for food. Planning for medical expenses. Planning for college tuition for children. Planning for...well, everything.
To sum it all up
A Bible verse states it pretty well.
Proverbs 6:6-8 (GNT)
"Lazy people, learn a lesson from the way ants live. They have no leader, chief, or ruler, but they store up their food during the summer, getting ready for winter."
If even the lowly ant can think about the future and plan for it I'm sure bright Hivians can too 😁
However, I think I would like to temper that with another Bible verse.
Matthew 6:25-34 (NIV)
“Therefore I tell you, do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more than food, and the body more than clothes? Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they? Can any one of you by worrying add a single hour to your life?"
Now a quick look and you might think that they totally contradict each other. One is saying to plan. The other to not worry. So which is it?
Well, I'm going to say both.
A wise person will plan in advance using whatever resources are given to him to prepare for the future. However, not all people will have those resources available. In that case don't let your desire to plan turn into despair. Things may not turn out how you want but they will all work out in the end.