When I think of all the odd gifts we give each other during the holidays, I fondly recall “The Twelve Days of Christmas” carol.
Now if you actually bought all of the gifts from the partridge in the pear tree to the services of the 12 drummers, it would cost you about $17,300, according to PNC Advisors, which annually tabulates the total cost of all of the items in the famous carol.
While consumers will be spending considerably less than that for their loved ones this year – on average about $800 – many Christmas budgets will still get busted and debt will still be massively accumulated.
So how about a twist on “The Twelve Days of Christmas” that won’t break the bank and might actually help someone you love put some money in their bank account? Here’s my version:
* On the first day of Christmas my true love gave to me software to track my finances. I know this isn’t an overly romantic gift, but let me tell you that not fighting about money can really lift your loving spirits.
* On the second day of Christmas my true love told me this: “Honey, two for one deals don’t save you money.” You might be inclined to think your honey is nuts to say such a thing. How is it that you don’t save if you get two items for the price of one? But think about it. You never save when you spend. You spend less on something, but you’re still spending.
* On the third day of Christmas my true love gave to me three hours of a financial planner’s time. If time is money, then spending time with a specialist to better your finances is well worth your time and money, don’t you think?
* On the fourth day of Christmas my true love gave to me four I Bonds and not a fondue set. Really, how much hot cheese do people eat? Inflation-adjusted savings bonds or I Bonds are currently paying 3.67 percent. I Bonds are low-risk, liquid savings products. While you own them they earn interest and protect you from inflation. You may purchase I Bonds directly from the government, at most local financial institutions or through payroll deduction. Go to www.savingsbonds.gov for more information.
* On the fifth day of Christmas my true love gave to me five golden rules for simplifying the holidays, which are: The best present is your presence; it really is the thought that counts; it’s the quality not quantity of the gifts; presents are forgotten but debt isn’t; and finally, nobody sees a therapist as an adult because they didn’t get a life-size Barbie or Xbox as a child.
* On the sixth day of Christmas my true love reminded me that six months of living expenses set aside will help me weather a sudden financial storm.
* On the seventh day of Christmas my true love reminded me that if I fell behind on my bills, the negative information could stay on my credit report for seven long years. For more information on how credit reports work, go to www.ftc.gov and click on the link that says “for consumers.”
* On the eighth day of Christmas my true love gave to me “The Power in Your Money Personality: 8 Ways to Balance Your Urge to Splurge With Your Craving for Saving” by Susan Zimmerman. In this book, Zimmerman discusses the psychological issues that affect how we all handle our money. By the eighth day of Christmas it may be too late to address your bad money habits, but at least you’ll have a year to work it all out and not overspend by the time the holiday rolls around again.
* On the ninth day of Christmas my true love gave to me this Web address: www.insure.com/ auto/autosave.html where I could find a list of nine ways to save on my auto insurance policy.
* On the 10th day of Christmas my true love gave to me this Web address: www.bankrate.com/ brm/calc/MinPayment.asp, where I could compute how long it would take me to pay off the average total Christmas shopping bill of $800 at an interest rate of 13 percent if I made just the minimum payment required. And the answer was – 10 years!
* On the 11th day of Christmas my true love gave to me an 11-month holiday savings plan so that I won’t overspend next year. You can find an online saving calculator at www.asec.org/ ycalcs.htm to figure out how to reach your savings goal.
* On the 12th day of Christmas my true love drummed into me an overall budget plan for the next 12 months. You will never get a grip on your holiday shopping or your overall finances without a plan. For an easy-to-use and free budget form go to Budget Stretcher at www. homemoneyhelp.com/ Budgetform.html.
I guarantee that if you get even some of the items on this gift list, your loved one will be leaping for joy with a song on his or her heart well into the new year.
Washington Post Writers Group
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