I remember like it was yesterday. Sitting around my grandparents’ dining room table, on a Christmas dinner food high, adorned with my 1980s big bangs and jelly bracelets, twelve year old me eagerly awaited the moment we all knew was coming. As the currency shaped envelopes were passed around the oval to the grateful recipients, each dreamed of just what they could do with the cash enclosed. Clumsily and quickly, we glanced at the winter landscape printed on the front of this year’s bank envelope. Speedily, we zoomed through the sentiments scrawled by our grandmother, right next to a president’s face. Sneakily, we peeked at the envelope’s contents, to see just how much money was inside this year. Then, our brains flew into a million directions. What could we buy? Would we receive more money this holiday season from other relatives? Should we wait until January to spend it or run out that very afternoon and burn through it all?
I have to admit that I still travel through many of those very motions and emotions of receiving cash at Christmas time. What a wonderful gift a few unexpected dollars can be! What a blessing a practical gift like money can be. However, it’s a great idea to think through strategies for monetary gifts before you receive that coveted envelope. Here are a few ways to make the most of the cash your grandparents might have floated your direction this December 25th.
Don’t Count On It. A rather sobering idea, your family might not always give you cash even if that’s been their gifting method of the past. Do not spend what you “think” you might receive, with the thought that you’ll pay it back after Christmas is over. It’s best to put the possibility out of your mind and then receive the gift well once it’s in your possession.
Use It to Pay Off Debt. It might not seem fun, but if you receive cash this Christmas, you should apply all or most of it toward debt. Many a Christmas between 2007 – 2011, we used Christmas gifts of money to do just that. During the process, it felt like we were under the pressures of both Ebenezer Scrooge and the Grinch; however, on the other side of paying off $127K, I can tell you it was completely worth it to sacrifice in the short term for a long term goal.
Buy Something You Truly Need. Somehow, we never lose that childlike disability to distinguish between wants and needs in our own lives. We can certainly point out the difference in others, but things get blurry in the day-to-day of our own lives. If you have a true need this December, by all means, use that Christmas cash to purchase said need. No one should wear shoes with holes in them or function without toilet paper. Again, this might not be the most exciting purchase you make, but you’ll certainly be glad for it. From household items to extra groceries, consider a practical approach to using those extra funds.
Save It. It’s never a question of if you’ll have a money emergency but when it will happen. If you don’t already, use your financial gift to begin an emergency fund. If you have such savings in place, then consider a long or short term savings goal. Whether it’s a killer vacation or a new phone, you might not have enough to purchase what you’re dreaming of right now but over time, consistent savings yield a great return.
Only Buy Things You Love. After you’ve applied some of that money toward debt, bought items you truly need, and saved some too, you just might have a little cash leftover, burning a hole in your pocket. Don’t just buy any ‘ole thing on the shelf. Instead, think about what truly brings you joy. For me, it’s a great glass of iced tea, so I’ve been known to splurge on a pricey brand of tea bag from time to time. You may find that truly simple things bring you great joy. If you don’t absolutely LOVE the way that new sweater/pair of jeans/coat looks on you, you shouldn’t buy it, even if it’s a good deal.
Whatever your Christmas cash purchases may be, promise me you’ll do your research. Look for coupons, read reviews, and make those dollar bills stretch. You’re sure to make your grandparents proud enough to look beyond the 1980s bangs and jelly bracelets if you employ methods like these.
Gain inspiration to pay off debt! Check out Inspiration to Pay Off Debt: 30 Days of Encouragement from the Queen of Free on Kindle.
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