Springtime is a great time to begin a savings plan for the holiday season. By making a budget, and saving just a little bit each week, you will be ready for holiday shopping. Save now for a simpler Christmas season later!
Start Today
Start by making a comprehensive Christmas list. Include not only the gifts you buy, but all the extras you will need (decorations, lights, wrapping paper, etc.) Now, put what you want to spend on a gift next to each name. Add a rough total amount that you’d like to spend on the extras. Once you have your total, make any adjustments to arrive at an amount that you are comfortable with and that is affordable. Then divide by the number of months or weeks that are remaining until Christmas. That is the amount you must save each month (or week) between now and December.
Shocked? That’s good! So often, we shop under pressure during the holidays. We don’t even realize how much has actually been spent until the credit card bills come in January. With this budget in hand, you can save now and pay cash for many, if not most, holiday expenses. You will also be able to take advantage of early gift sales when you see something special.
Take Simple Steps
Let’s say that you’d like to save around $1200 for Christmas, and you have nine months (or 36 weeks) to do it. If you save roughly $33 a week between now and mid-December, you can pay for your holidays and avoid the shock of January bills. Sounds good, but how?
In his article, “How to Save Money: 20 Simple Tips”, Dave Ramsey suggests ways to “find” money that can be saved for a special purpose, such as a holiday fund:
- Cancel subscriptions you don’t use. A recent look through Amazon charges showed a subscription to a movie service that I had signed up for when renting a film. I was also paying for Kindle Unlimited, which I had never used. By cancelling these, I save $25 each month. What subscriptions do you no longer use?
- Cut your grocery bill. This could be an easy place to save at least $50 – $75 each month. Plan a few meals each week, review what you have before you shop, stick to the grocery list, and buy generic when you can. You may find your entire Christmas budget at the supermarket!
- Explore cell phone and TV options. Limit streaming services to what you actually use, or look for bundled services. Consider switching cell phone carriers or eliminating features you don’t use or need. These strategies can save $50-60 per month.
- Borrow the things you need or buy them at a discount. When you do need to purchase something significant, check online marketplaces or a Buy Nothing Group. Often you can find what you need for free, or at a greatly reduced cost – and save something from the landfill in the process.
Saving for Christmas may seem strange when spring has just arrived, but when the holiday crunch hits, you will be glad you did!
