160. Debt-Free Holidays: How to Plan Now and Avoid a January Money Crash

The holidays shouldn’t leave you with a financial hangover. Too many families overspend in December and end up paying for it well into the new year. In this episode, I’ll share practical steps to create a holiday budget you can actually stick to—so you enjoy the season without relying on credit cards or buy-now-pay-later debt.

In this episode you’ll learn:

• Why 36% of Americans go into holiday debt—and how to avoid being one of them
• The simple sinking fund method to cover gifts, meals, travel, and traditions
• How to set clear boundaries with family and simplify your gift list
• Creative ways to cash-flow Christmas through decluttering and subscriptions swaps
• Why intentional planning creates peace and margin instead of panic and pressure

 Ready to reset your mindset before the holiday chaos hits? Join the free 7-Day Money Mindset Shift Challenge inside the Legacy Builders Network on Facebook. Together we’ll rewire how you think about spending, giving, and financial peace just in time for the season.

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Transcript

Laura: 0:01

You shouldn't have to clean up a financial mess in January just because you wanted the holidays to feel magical in December. hello and welcome to money and career mastery from overwhelmed to ownership. I'm Laura Sexton, your abundance and legacy coach here to help you navigate the world of money, debt payoff, and career growth with confidence and clarity. In this podcast, we'll tackle the financial and career challenges, holding you back, optimize your income and build the freedom that comes with true ownership. If you're ready to break free from overwhelm, create a budget that aligns with your values and design a legacy that empowers future generations. You're in the right place. Hey, accelerators, just so you know, my littlest assistant is with us today, so you may hear some cooing or screeching in the background. I wanted to talk to you about debt-free holidays now in the beginning of October because I know how intense it can be when we get closer and closer to Christmas, and I really want you to have a plan. I want you to have some intention, and I want you to do well when it comes to holiday season. Prep for the holidays has really helped my family enjoy the holidays without an overspending hangover. It has been so incredibly important since we started this journey in 2016. To live intentionally. And in the beginning it was small, small, small holidays and we couldn't go on big trips and we couldn't do a lot of things because we were working so hard to pay off$372,347 of debt. But once that was paid off, what we knew we would never do again is go back into debt. We as a family have decided that is never going to be an option for us. We cannot, will not stand for that. So I will tell you that sometimes when I'm working with couples and we start preparing for Christmas back in June and July, I do have a Christmas in July tracker that I try to give out to everybody in July because I want you to start planning as soon as possible. I will on December 26th, put out a post that says, today is the day to start saving for Christmas. Okay. I really want you to spend as much time planning ahead so that you're not spending too much money. I get a little frustrated sometimes with my clients who have had this tracker since July and we've made a plan. They come back and they say. Well, I forgot about this and I forgot about that, and I forgot about Jim Bob, and I was supposed to buy something for Jim Bob, and I didn't buy anything for Jim Bob, so I had to buy something for them, and I had to put it on a credit card. No, no more my friends. We are not doing that. I want you to make a commitment to today to give yourself the peace of mind. Give yourself a rule that you are going to stick to that says, I am not going into debt for Christmas. If you enter the holidays without a planned, you will wind up overspending, you'll wind up stressed out, and you will have lingering debt well into January. About 36% of Americans took on holiday debt last year, and most of that landed on credit cards with the average person racking up, oh my goodness, this number makes me sick.$1,181 in spending that they just could not afford. It's no wonder January feels like a financial crash. 21% put their payments on buy now, pay later accounts. I worked with a couple that had six of those six buy now pay later accounts, and they kept getting them and they couldn't figure out why they weren't getting ahead. What if this was the year that you chose peace and margin and meaning instead of panic and pressure? That's what happens when you plan ahead for your holidays. So why start early? Why plan intentionally? Well, you don't need a huge budget to make the holidays exactly what you want. You just need a clear budget. You need clarity, and you know how much I love that. The holidays you see, they're not a surprise. Christmas comes on December 25th every single year, but most people treat them like they're just shocked when it comes around, but you can't afford to just charge it and deal with it later, especially with the rising rates. In 20 24, 40 2% of holiday debt on credit cards had over a 20% interest rate, and late payments are on the rise across the country. Now, let me tell you, 20% interest, that sounds great compared to the interest rates that I'm seeing on most of my clients' credit cards. 26 to 32% is normal right now. You do not need a 32% interest on your past decisions. That is a penalty, and I don't want you paying it, especially not for Christmas. It's supposed to be a time of peace and joy, not penalty. So break this down. Okay. We're gonna re-engineer your holiday costs. We're gonna break it down, break it down into real categories. Here are some of the ones that I can think of, but maybe you can think of some others. So, gifts. We know we're giving out gifts. We know we're gonna travel. There are going to be meals, there's decor, there are events, there are traditions that you don't wanna miss out on. Assign a dollar amount to each of these. Total it up and divide it by how many paychecks you have left before mid-December. Say mid-December, not the 25th. You're not gonna be buying presents on actual Christmas and then go ahead and start your sinking fund. If you put$50 a week into a sinking fund, you will have$600 by December. That's more than enough money to pay for your Christmas. I have seven people in my family that I'm spending for for Christmas.$600 would be enough if I. Paired everything down to only what was necessary, only what felt like it needed to happen. You know what needs to happen. I need to make Christmas cookies with my kids. I need to make Christmas cookies with my kids. That's all I need to do. That's the only tradition that I'm just like, I refuse to give it, give it up. I like going to see Santa, but you know, that's expensive. Why seeing Santa cost money nowadays? I don't really understand. It was free when I was a kid, but okay. I don't want you to panic because this feels impossible. You're like, no. Well, my sister Sue, she's gonna expect me to buy presents for all her kids, and we do all these holiday things and I, I can't, I can't. Well, you can do some decluttering around the house, make some cash off of some of your stuff. Let me tell you some of the stuff in your house, you don't need it anymore. And there are people that are looking for cheap Christmas gifts. I bet they're willing to pay for it. Get some cash by dec cluttering your house. Pause the subscription. Maybe you don't need to be watching so much TV'cause you're trying to make all these memories in December. Turn those off, put that money back in your budget. Use what you have, sell what you don't need anymore and give away with intention. Credit card balances in the US reached$1.17 trillion before holidays even began last year. It means people were already carrying debt well before they got started buying gifts, and so let me tell you, they just kept racking it up. We are at$1.5 trillion in credit cards, and it feels like that number is only going up. Every time I see this number, I get really sad because I feel like I'm wasting my breath sometimes. I feel like there's no way possible I'm making a difference in people's lives. I know that I so desperately want to, and if the only person whose life I touch is yours, you, my dear Accelerator who is listening to me right now, if you're the only life I touch and you hear me say the credit card is stealing from your future, it is not helping you. It does not make things easier for you. I love you enough to be honest and say stupid. Put it down. If you are the only life I touch. It is worth my time, energy, and money to put out this podcast, and I'm thankful for you. It is okay for you to simplify your gift list, say yes, and say no. With purpose. I would like for you to shift towards memory, gifts, experience, family swaps, group giving these boundaries. They're not selfish. They're very strategic, generosity, and let me tell you. Oh friend, let me tell you. There are probably people in your family that are desperate for somebody to put up a boundary and too scared to do it. Be that friend for them, be that wonderful loving family member that just says, Hey, I can't this year. Can we do something different? Even if you have all the money in the world, if you have to buy 900 bazillion presents for all of the cousins I have in one side of my family, I have nine cousins. Nine. We would go to Christmas and there would be one present under the tree for all of the cousins and six parents, and it looked like we were at Montgomery Wards and it was just a display in the window. It was crazy, and everybody just got one present. Can you imagine all of us having to buy something for everybody? It would be an insane amount of money spent on a holiday that we could not afford. That is why our family decided that, the adults would buy a family present for each of the families involved, and the kids didn't buy anything for each other. Or as we got older, the kids would draw names out of a hat and would buy presents for each other. My kids, now there's five of them, and five of them want to buy gifts for each other, and I love that. And so what we do is we go to five Below and they can each buy a$5 gift for each other, and they buy some of the most thoughtful gifts that are just amazing, and they're$5 each. The kids love the intentional spending on each other and the gifts that they receive from a thoughtful, loving sibling. You don't have to get crazy just because you've always gotten crazy at Christmas. You don't have to give gifts to one up somebody else. That's not the holiday spirit You wanna be living in Okay, so here are your holiday action steps. Write out every holiday category, not just the people you're buying gifts for total. What you will realistically want to spend, divide that total number by the weeks and paychecks that you have left. And then choose your savings method. Be it an envelope, a visual tracker, auto transfer I don't care what it is. Pick something and stick with it. You need this time between now and Christmas to set the intention and make it happen for yourself. Don't let this be another stressful January. Make this a Christmas to remember one that you have in memories and not in credit card payments. If you're ready to reset your mindset before the holiday chaos hits, come join us in the free Facebook group for the seven Day Money Mindset Shift Challenge starting on Monday. We will rewire how you think about spending, giving, and financial peace just in time for the most expensive season of the year. The link is down in the show notes and we wanna see you there. Come join us inside the Legacy Builders Network with Laura Sexton over on Facebook. Until then, accelerators, you know what to do. Go out and make a difference. thank you for spending time with us today on Money and Career Mastery from Overwhelm to Ownership. Remember, your legacy isn't just about financial freedom. It's about living with purpose, taking action, and building a foundation that lasts for generations. Don't just listen, implement what you've learned and share it with someone who could use a financial or career breakthrough. If you found value in today's episode, help us grow by rating, reviewing, and sharing the podcast. I'll be back next week with more strategies to help you master your money and career. Until then take ownership of your future and build your legacy with intention.