How You Should Spend Your Christmas Money
How You Should Spend Your
There is no better feeling as a child or even as an adult than coming downstairs early on December 25th to open presents! As you slowly wake everyone up around you in preparation for gift giving, you are left there wondering what you might get. As you slowly grow out of your childhood, your gifts begin to come in smaller boxes and sometimes only in envelopes. These smaller and more compact gifts tend to hold an even better gift: money!
most people can remember, the Christmas eve/morning as an adult tends to follow
the same path: you wait and watch as the envelopes from loved-ones are passed
around the Christmas tree and you begin to imagine what you would do with the
money. Would you buy new speaker? A new phone? Nothing? As you begin to open up
the envelope, taking a long moment to glance at the Christmas-themed card and
take a look at the kind words that the person wrote for you, you are finally
able to take a quick peek at the envelope’s content and see how much money is
inside this year. Then you begin deciding what to spend the money on this year.
is such an incredible gift to receive some money during the holidays. Now
before you start spending it all on consumer goods and on things you want, I
think it is important to use this money to benefit both present you and future
you. Here are a few ways to make the most of the cash your parents/
grandparents/relatives might have given you this holiday!
as a reminder, this money is a gift. It is not something that you should ever
expect to receive and therefore you should not be disappointed if you do not
receive it or receive a smaller amount than you were expecting. As an adult you
should not expect it but appreciate it from a loved one. It is very important
to never spend money that you have not received with the expectation that it
will come on Christmas morning. This is just a recipe for disaster!
off your Debt
might not seem fun and will probably be one of the last things you would want
to do with the money you received from a family member but if you do receive cash
this Christmas, you should definitely apply it to any debt you may currently
have. By doing this, you are sacrificing the short-term gain for a long-term
benefit. Although you might not feel like using this money to pay off debt, it
will actually be worth more than it currently is. As an example, you receive
$100 from your grandparents. Instead of buying a new videogame or piece of
clothing, you take that $100 and you pay down your credit card debt. Now
instead of this money only be worth $100, it is now worth $119.99 as it reduced
your principal credit card debt and reduced the interest charged (usually
anywhere from 19.99% to 23.99%) that you would have had to pay over the next
few months as you reduce your debt. So instead of your grandparents providing a
great gift of $100, they actually gave you a chance to save an extra $20 by
paying off your debt this Christmas year. It’s like the gift that keeps on
you are lucky enough to not currently have debt or your debt is in the form of
a mortgage or line of credit that is fixed (and therefore an extra payment
might not drastically affect the debt), than you will have a decision to make.
It is always important to make sure you are able to distinguish between wants
and necessities. If there is something that you need and that will make your
day to day life much easier, use this Christmas money to purchase this
necessity. Now this item will be different for everyone. For me, this item last
year was a good quality blender as I love to make late-night milkshakes and
early-morning smoothies and having to use a bad quality hand-held mixer was
taking a ton of time every day and was just extremely difficult. So, I took
some of my Christmas money and splurged on a nice (but reasonably priced)
blender to simplify my morning routine and with the extra time saved from not
having to use a hand-held mixer, I was able to be more productive at work.
Again, this might not be a super exciting purchase, but I was happy to have
used the money that I received as a gift to buy this item that I might not have
bought if it was up to me. From a useful household item to buying an activity
that will get you outside of the house (not during the pandemic of course), consider
a practical and fun approach to using up this money. But remember, this money
does not need to be spent but rather should be used properly!
I have said time and time again, you never truly know when your next emergency
will occur! That is why I think it is so important to make sure you have a
strong emergency fund just in case something happens. If you have already built
up a savings and/or an emergency fund and you already have everything you need,
then you should invest this money. As the saying goes, you need money to make
money. If you are in a fortunate position where all of your costs are being
paid off completely every month and you do not have any high-interest debt,
than it is always a great idea to invest any extra money that you may have so
that it can begin to compound over time. Investing is an easy way to begin
growing your Christmas money.
you decide to use your Christmas money on, always remember to do your research
and make sure that you are stretching every single dollar so that you maximize your
benefit and minimize your cost. Trust me, there are always coupons available
and there is no reason to spend more money than you have to on the same
product. Christmas money is a gift and should be used in a way that helps you
move forward towards a better financial position than you are currently in.
me know what you think! Would you change anything? Let me know in the comments!
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