Christmas killed me this year
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| Tue, 12-21-2004 - 2:47pm |
And I was doing so well. I had paid off a couple credit cards and was on a good repayment plan but I'm afraid I lapsed. Part of it (no excuse, just poor planning) was I have two kids with December birthdays plus there are a lot of hands out right now -- teacher gifts, preschool gifts, secret santas, etc. And then there is the biggest killer of all: no school. We have to pay almost $500 extra for drop-in daycare while school is out. It really bites that we have to pay a fixed amount of afterschool care every month whether there is school or not. Then they charge extra for "camp" on school vacations which doesn't even cover all of the days the kids are out of school. I'm going to have to take some days off work without pay to cover for those days because I am out of vacation days and we have absolutely no one who can watch the kids.
Anyway, I'm disappointed with myself that I have slipped and charged some things. The one positive is that I opened a Christmas club account for the first time in my life last week. It's only $10 a week but I figure $520 next year will go a very long way towards not getting myself in this bind again.
Our company's union just negotiated a new contract for a pathetic raise but at least it is retroactive to October so sometime next month my husband and I will both get a couple hundred in back pay. That will go immediately to the Target credit card I had to reactivate. I've already cut it up again.
Thanks for letting me whine, Jenny

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At least you know what you spent and you will not be that far off track. You are still doing well, and we can't be expected not to fall off the spending wagon now and again.
How much is after school care? I am really curious what that typically costs for when dd starts first grade. I called in my school district but I never got a call back. I'm guessing it typically costs $300 or so a month for one child?
We "just hang on" through December and January every year. This year I have been really, really good about just sticking with the budget. None of the kids wanted anything extravagant, or even more than $30, so we were able to put together a few presents for them, plus stocking stuffers, for under $150 each.
We also have a December baby, who turns 10 this year, and I am just not up to having a cheap party at home, so I caved for a scrapbooking party, which will cost $120, but on the bright side, she wanted next to nothing for her birthday or Christmas, so we can be frugal with the birthday gifts.
I think I will open a Christmas plan this year too! Every year I say, "Nah, who needs it," but that $500 really *would* be useful.
Kelly
This time of year is really hard for a lot of us!!!
Becky
CL of 4th, 5th & 6th grade Scoliosis
It sounds like all of your extra spending was fully justified. The key in the future is to anticipate it rather than be surprised by it. The Christmas Club account is an excellent idea. Sort of a Christmas "insurance". :)
My Weblog: http://psychknight.blogspot.com
I feel the same way-like I fell off AND got run over by the Christmas Train.
Good news, though-we can make a fresh start today, right now.
Good thinking on the Christmas Fund, too. I know that I set up an ING account for that, but I also know that I didn't put any money into it this year. Kinda defeats the whole purpose, LOL.
Here's to good holidays, and fresh starts-
Lisa
I guess that is all a matter of personal opinion and what each person finds works best for them. Some might find that putting the money away in an account gives them the peace of mind they need where others might find that paying off the credit cards gives them better peace of mind. Just my 2 cents.
~leanne
and if you open a savings account for the purpose of putting money away for Christmas it would earn some interest.
~leanne
deciding to be happy doesn't mean that everything is perfect, but that you had decided to look beyond the imp
Actually, it's not a "stupid idea" at all. There is certainly a valuable school of thought that says paying down the debt, at the cost of all else, is the fastest and best way to go. The mathematics may argue for that school. But the statistics do not.
For a lot of us, the debt game is as much about psychology as it is about math. For me, to be able to pay cash for everything, even though I still have credit card balances, is much more psychologically satisfying than paying off a lot of credit card debt but then having to charge them again to pay for the things I haven't been saving for because I've been paying off the credit cards. I think this is true for the majority of people who are in debt. Plus, if I haven't saved for Christmas, then it is too tempting to spend more than I had planned on. On the other hand, if I have promised myself not to use my credit card AT ALL, it is impossible to spend more than I have saved. So saving for Christmas actually *does* lead to a cheaper Christmas for me than paying off the same amount on my credit cards would.
I agree that *some* Christmas club accounts are a rip-off, but most are valid savings accounts with all the same benefits of a regular savings account plus the added benefit that you can't take the money out for something else and not have it when you need it. You just have to do the research and make sure you're investing in a legitimate and fair account.
Another not inconsequential advantage to saving for Christmas (and all the other savings accounts we set up even before paying off all our debt), is that it starts a good habit that will serve us well after our debts are paid off. This advantage is well recognized by the experts and well documented. Many people who simply pay off all their debt as fast as they possibly can find themselves in the same situation a few years later because they never built the positive habits they needed to serve them after the debt was paid.
Finally, everyone here works to foster a really supportive, kind, non-judgemental atmosphere. Words like "stupid idea," when directed at other board members, are not conducive to the atmosphere that we all love here. I'm sure you didn't mean to be insulting, and I hope that you will continue to post your thoughts, even when (especially when) you have an opinion different from those already expressed. It would just be nice if you'd do so in a manner that isn't hurtful.
Blessings,
Heather
Sorry, of course you're right! My apologies to all. I do like the idea of making a Christmas budget and sticking to it, tho. That way, the expenses don't come as such a shock!
Don't you think, though, that in a country where most people carry thousands of dollars worth of credit card debt, it's kind of self-defeating to be focussing on small ways to cut corners around holiday time? Seems to me that if you can't afford merry little Christmas, you probably need an OVERALL plan for bringing your expenses more in line with your means, all through the year, right?
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