Christmas lasts a long time and costs a lot of money. The little verse from the popular Christmas hymn is not entirely without truth. The month of December is notoriously known for being the most expensive of the year.
Christmas decorations, Christmas presents and Christmas traditions are not only enough to buy gifts, but the joy of giving can evaporate when the bill is settled at the end of the month.
Here’s how to avoid starting 2017 with financial hangovers
In short, you need three things:
- A budget
- An agreed price for Christmas presents
- A Christmas savings account
It’s so nice when you have had and followed the perfect budget in December. But let’s be honest: most people don’t! And it is often here that large consumption fluctuations occur. For while the intentions are good and the gift must be right, one’s generosity and urge for Christmas cheer can become a hindrance if one does not follow a budget.
You should start December by dividing your money
Into piles for gift purchases, Christmas parties and parties such as Christmas lunches and New Year’s Eve. If you do that, then you also know what to do with it. And then you avoid spending 1300 dollars too much on Christmas gifts and fall over the perfect suit at the January sale, which you can just get before New Year’s Eve.
Make sure you have an overview of what is reasonable and realistic – and remember! Even if you always want others to do their best, it is perfectly ok to give a gift within your own budget. It is also perfectly okay to agree on a budget if you are afraid of risking disappointing someone. In fact, we recommend that you do so.
Last but not least, you should set aside money for the Christmas season all year before – especially if you know you have to spend large sums. So, if you belong to this type, you may well start 2017 with an additional savings account. Here you can deposit a few hundred dollars each month. Then you have a few thousand extra next Christmas.
The increasingly popular solution: the consumer loan
Okay, it’s probably the few who have budgets and savings in place for Christmas. That is why we are also seeing a growing trend in people borrowing money for December and the expensive month of January.
Typically, people find a consumer loan from one of the major providers, A consumer loan from this can give the extra freedom that is nice to have in both December and the following January. Then you can both buy great gifts, hold a party on New Year’s Eve and have the money to pay insurance premiums, electricity bills and the other heavy bills that tuck into January and usually push the economy to the brink.
Today, a consumer loan can be obtained with lower interest rates than ever before, and it is quite a normal practice for many Danes to give themselves a proper room in the economy by borrowing money for the expensive months. After that, it is just to repay the agreement installments, which are distributed over a long period, and therefore do not feel as incomprehensible as Christmas and subsequent January.