How to Manage Money and Eliminate Debt

Monday, December 7th, 2009 at 8:03 am Edit

The 12 Debts of Christmas Part Two

Dashing through the malls

with credit card in hand

buying big and small

I don’t understand

I wish I had more cash

but my credit card I’ll use

I spend it in a flash

Oh, I have the holiday blues

Oh, Jingle Bells my credit smells

and I think I broke the bank

Oh, I wish I was debt free

but I have myself to thank

Oh, Jingle Bells I’m penniless

and I have some bills to pay

I still have some things to buy

what else can I say

How to Manage Money and Eliminate Debt

Debt and the holidays don’t have to go hand in hand. Here are a few tips for how to manage money in this holiday season and how to start tackling your debt before it becomes too much.

HOLIDAY DEBT TIP 3: How to Avoid More Debt

Spend Less – In my family Christmas was a time for sharing laughter, playing games and breaking the bank. We all spent more than we should. When we realized that it was the company and not the gifts that were important, Christmas changed for the better. Rather than buying one gift for each person, we started to draw names and bought just one gift for one person and had a spending limit. Our limit was $100 but it doesn’t have to be that high. The thought really does count and sometimes a $25 gift or a homemade gift means more to a person then a new PS3 or I-POD.

Turn Off Those Lights! – You may be in the Christmas spirit and want to tell the world how wonderful this time of the year is, but for heavens sake turn off those Christmas lights. Those little suckers zap so much money out of your wallet. Try only having them on from 7 until 10 and wait until the middle of December before you start lighting up.

Share The Duties – Rather than preparing an entire meal for the whole family of aunts, uncles, in-laws, cousins and friends share the responsibilities. Have Aunt Julie bring her world famous mashed potatoes, your in-laws can bring their favourite bottle of wine, mom and dad can take care of dessert and your crazy cousin Johnny can supply the rum and egg nog. Don’t put the entire dinner on your shoulders and on your wallet. Sharing responsibilities will help show you how to manage money and take away some of that financial burden.

Exchange Presents on the 29th – Before you go out and hit the malls maybe you can wait. Boxing Day is the perfect time to go shopping. The malls may be insane but the money you can save is almost worth that extra time and frustration.

HOLIDAY DEBT TIP 4: Start Tackling Debt Now

You have to start paying more than the minimum. Use the debt stacking approach I have mentioned in some of my previous posts. Tackle your lowest debt first and wipe it off the map. Use any extra money you have to get rid of that balance. I can’t stress enough how important and how valuable a tool debt stack actually is. It’s more important that you take your finances into consideration than it is to rack up even more credit card debt.

For my next post there will be a heart warming song you can sing and I will include two more tips on how to manage money and remain debt free this holiday season!

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How to Manage Money and Make it Grow

Wednesday, December 2nd, 2009 at 8:12 am

The 12 Debts of Christmas Part One

Oh the weather outside is frightful

But the fire is so delightful

My credit card is maxed out so

Let it Grow! Let it Grow! Let it Grow!

Tis the Season for too much spending

And there’s just no comprehending

How will I pay my bills next year?

Let em Grow! Let em Grow! Let em Grow!

My debt is as deep as the snow

Oh what a terrible fright

And I know it will continue to grow

How will I sleep through the night?

Now the presents have all been given

To the poor house I have been driven

And my credit scores are way down low

Help it Grow! Help it Grow! Help it Grow!

How to Manage Money and Make it Grow

The holidays are just around the corner and you have two things on your mind. How am I going to avoid the in-laws as much as possible and how am I going to be able to afford this come January? Over the next couple of weeks I am going to go over 12 tips for holiday debt relief. Each one will teach you little by little how to manage money and make this new year a debt free one!

HOLIDAY DEBT TIP 1: Don’t Add More Debt

Did you know that every $50 you add to your credit card balance will add another month to the time you will be able to pay it off? Don’t worry, Christmas isn’t cancelled! You don’t have to tell the kids that Santa isn’t coming this year. You do however, have to keep an eye on your budget. Now is the time to really sit down and crunch the numbers. Decide what you must have and what you can afford to lose. Do you really need a stocking stuffer for the dog or a brand new outfit to show off for Christmas day? Decide on what is really important and what can be missed. You will surprise yourself with how much you can actually save. Christmas is a great time to learn how to manage money.

HOLIDAY DEBT TIP 2: Make a List and Check it Twice

It may be easy to overlook your finances during this busy holiday time but you can’t forget the big picture. It’s time to set goals and stick with them.

Goal #1: Start an Emergency Fund – Any amount helps. Even if you can you spare $10 or $25 a week it’s time to start now and it will help. The goal is to have at least $1000 saved up and the sooner the better.

Goal #2: Start Debt Stacking – You’re credit card bills are probably starting to role in right about now. This is the perfect time to start snowballing your debt. Check my previous posts for debt stacking tips.

Goal #3: Cut the Cost of Living – There are all sorts of ways to cut your expenses. Turn down the heat a couple degrees when you are at work or when you go to bed. Turn off any lights when you aren’t in a room. Check any windows or door ways where hot air may be escaping and seal it up. The amount of money you will save will amaze you.

Goal #4: Clip Coupons – Every store wants your business. Look online or in the newspaper for deals. The more time you spend shopping around for those amazing bargains the more money you will save with your holiday purchases.

Try creating six other goals for yourself. If you don’t know the answer, there are some resources on this blog that can help. If you have some questions let me know and I will try to help!

For my next post there will be another delightful song you can break out around the dinner table with family and friends and a couple more tips on how to manage money and remain debt free this holiday season!

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