I know it’s getting down to the wire for some of you who may be shopping, making plans to take time off, or to be with family, friends, and loved ones. But don’t forget: right now is the perfect time to prepare for next year… Not only are we in the season of giving. But as you know, we’re coming to the end of 2021. So, I want you to ask yourself what changes you’d like to make in your life in 2022… Because now’s the time to prepare.
Fresh Start This is the moment to get in the mindset of starting fresh in just about two weeks. What’s something you want to start with a clean slate? Maybe it’s getting out of debt. (Read on here, if you want to find out where to start.) Maybe it’s getting better prepared for November and December 2022, like I mentioned last time. Maybe it’s being ready for the possibility of an unexpected expense, like dealing with a major appliance that stops working. Or maybe it’s for the costly bills that always come due once or twice each year, like homeowner’s insurance and the property tax bill. (I talked about this in my three-part homeownership series, which you can catch up on here, here, and here.) There’s no better time than the present to get ready for these things come January.
Make a Plan So, start making your plan now. If you know you’ll probably end up spending a lot of money 12 months from now—that you struggled to scrape together this year—start saving up for it in January. If you know you shop for gifts in December, try to save up what you need by then. That means you have January through November to do so—11 months. I used $1,200 in the example from the last Making Cents e-letter. So, in that case, you’ll put aside about $109 every month ($1,200 ÷ 11). If it’s more like $600 you spend on gifts in December, then you’ll save about $55 each month ($600 ÷ 11). Same thing goes for preparing for something that may need to be fixed or replaced. If you think you’d need $1,500 for a new fridge, and you want to be ready by July, you have January through June to save up for that—six months. That means saving $250 per month ($1,500 ÷ 6). And if you want to be prepared to pay the property tax bill ahead of time (so you’re paying the least amount possible), if the early due date is in November, set money aside between January and October—10 months. If your 2021 bill was $2,000, you can probably expect it to be slightly more in 2022. Work toward setting aside $2,100 before the November deadline. That’d be $210 per month ($2,100 ÷ 10)… If you wish you had realized all the things that would’ve cost you a lot of money… If you wish you would’ve done things differently this year… don’t cry over spilt milk. We all make mistakes. The best thing we can do for ourselves is learn from them. There’s no better time than the beginning of a new year to start making improvements. If not having enough this year has been a stressor, be encouraged by the fact that you now have an advantage you didn’t before: knowing what to expect.
Time Well Spent So, take some time to think of your plan and how to put it into action in January. Then, make sure that the rest of your time this year is spent enjoying life. I don’t know what you may have gone through this year. But one thing I do know is that you still can find at least one thing to be thankful for. Let that be what brings you joy these next two weeks. And enjoy the holidays. Don’t forget what the season is really all about. This season is a time to remember that we have all been given an opportunity to be saved. Christ’s sacrifice on the cross made it all possible. So, in all the hustle and bustle right now, remember to stop and think about His ultimate gift. Jesus is the reason for the season… Merry Christmas!
With gratitude,
Melody C. Kerr, MS
Writer, Editor, Financial Coach
