It’s only fall, so you may think it’s too early to start saving for the holidays, right? Wrong! Saving for gifts now can prevent overspending and get into too much credit card debt later. Here are five ways to prepare for holiday spending early.
How to Save for Holiday Spending Early
- Save Now. Saving money starts now. It’s never too early to save for the holidays! Determine what your budget will be to plan out your savings timeline. Use our saving for a goal financial calculator to figure out how much you will need to save on a weekly, bi-weekly, or monthly basis. That way, you can start putting money aside now, and start saving for holiday spending early.
- Set a Budget. How much money do you have to spend? Creating a holiday budget now can help you stay on track until December. Don’t forget to factor in how many gifts you will be buying, how many parties you will attend, or even how many parties you will host. ACCC provides both a holiday budget worksheet and a holiday shopping checklist you can check out.
- Open an Account. Consider opening up a holiday savings account that you can deposit money into all year. Try and find one where the bank only allows you to withdraw money from the account on a certain date. Not only will you not be tempted to take out money prior to the holidays, but you’ll have enough money saved when you’re ready to start holiday shopping.
- Get a Head Start. Don’t procrastinate. Get a head start and beat the holiday rush on Black Friday by shopping now. You may think that you’ll find the best deals then, but this is not the case. In fact, you can find great discounts on Christmas gifts during off-seasons. This allows you to spread your shopping expenses out so you don’t find yourself in sever consumer debt come January!
- Buy Gift Cards. Many restaurants and online outlets offer discounted gift cards around the holidays, especially from November through the end of the year. In addition, you can redeem points by using certain credit cards for gifts or gift cards (just be mindful of not racking up too much debt).