Saving For the Holidays: 5 Things to Consider

The holidays happen at the same time each year, and yet we still find ourselves struggling to pay for all of the added expenses. With some careful planning and consideration, the holidays do not have to sabotage your budget. Consider these 5 tips while saving for the holidays this year.

Create a Budget & Stick to It

It is very easy to let your holiday spending get out of hand. People are in a frenzy during the holiday time and the stress and chaos that comes with the holidays can lead to grossly over spending. Set aside time to sit down and think of all the people you want to buy for, the other expenses related to the holidays. Set a budget for the spending you need to do and find a way to stick to it. Creating a plan before you spend any money will help you to stay focused and on track.

Pick Up a Side Income

One way to save for the holidays without hurting your finances is to earn a side income to save for the additional expenses. Use your skills to earn a little extra money, pick up some freelancing work or offer to rake fall leaves in exchange for cash. Put this money aside and allocate it for holiday expenditures.

Don’t Forget to Budget For Groceries

Many people make a crucial mistake in holiday budgeting by neglecting to address increased expenses in grocery shopping. Don’t forget to budget for the many food expenditures that add up during the holiday season. Either find a way to eat out of your pantry and freezer and allocate some of you grocery budget toward holiday expenses, or add extra money into your grocery budget that month. Don’t just think about the meal you’ll cook for Christmas Day, but also consider kid’s school events, potlucks you are attending and extra holiday treats you’ll be making.

You Don’t Have to Do All Of Your Shopping After Thanksgiving

It is common knowledge that you shouldn’t decorate for the holidays until Thanksgiving has passed, but that doesn’t mean you can’t start your holiday shopping. Start your holiday shopping earlier in the year to help spread the cost of buying gifts. If you see something on a great deal in October, don’t hesitate to pick it up and set it aside for the holidays. This strategy will save you time, money and stress.

Save For the Holidays in Unconventional Ways

There are many ways to save for the holidays and to handle the expenses that arise that defy conventional wisdom. Consider using these tactics to finance the holiday season this year.

1. Sell things around your house that you don’t need or use. Put the money you make from selling any of these things into an account or envelope earmarked for the holidays.

2. Sell used items into Amazon. They have a trade in program that will give you a credit on your account. Use this credit to buy Christmas gifts.

3. Not all gifts have to be material items, maybe you can offer a night of babysitting to your friends, so they can enjoy an evening kid free. Think of ways you can exchange your services in a way that is free for you, but useful for your friends and family.

4. Purchase gift wrap and cards on clearance at the end of the holiday season, set them aside and have plenty on hand next holiday season and avoid paying full retail price.

Do not suffer from a financial hangover in January as the credit card statements start coming in. Plan ahead with these strategies and find yourself enjoy a fabulous holiday season that is within your means. Call Carolina Money Minders today to discuss your holiday expenditures and how it can affect your financial future.