With Christmas over, you’re probably eager to move back into your usual routine, ring in the new year and leave holiday planning behind for a while. However, this is the ideal moment to commence saving for the next Christmas festivity. Yes, Christmas always lands on the same date, so it’s practical to begin your preparations ahead of time. In the past, I tended to start in June or July, but last year, I chose to start in January. The advantages of early Christmas saving are numerous, and here are some effective methods to achieve it.
Create a Target
Having a specific goal makes the process of saving money a lot more appealing. Decide on the amount you’re aiming to set aside for Christmas. This figure will allow you to determine when to begin and how regularly to save. For instance, you may wish to save $600 by starting six months ahead, requiring a contribution of $100 per month. Similarly, if your target is $1,000, you can divide this in whichever way suits you and determine when to start saving. We chose to save roughly $800 this year, starting in January, which equated to only $67 per month. Reflect on your expenditure from the last holiday season to aid you in setting your savings target, making future Christmas expenses significantly less straining.
Enable Automatic Transfers
Once your savings amount and timeline are set, making use of automatic banking transfers can simplify the process. Most banks provide this service free of charge, ensuring regular savings without constant worry. Certain banks, like Chime, allow automatic allocation of 10% of your income to a savings account whenever you’re paid.
Utilize Your Cash Back
If you have a cash-back credit card, or use cash-back sites such as Rakuten, consider putting your accumulated funds into your Christmas savings pot. This is something I personally do every year to boost my savings. My credit card doesn’t have a cashback ceiling, enabling me to earn more. Upon receiving rewards, I transfer them straight to my checking account.
Digitize Your Savings
Consider digitizing your spare change savings for added convenience. Digit is a platform that facilitates automatic savings of small amounts. It syncs with your checking account, scrutinizes your spending patterns, and performs random savings transfers weekly. Although you can choose to halt the process anytime or withdraw money back, you may find the extra accumulated savings handy.
Reduce Regular Expenditure
Another option is to cut back on your normal spending and save the difference. Start small if need be, and don’t make any sacrifices that leave you feeling deprived. Just by purchasing generic brands throughout the year, you’ll notice savings mounting. Additionally, simple lifestyle changes like making meals at home more frequently can contribute considerably to your Christmas fund.
Summary
Managing holiday expenses doesn’t have to be taxing if you plan and prepare early. The sooner you start saving for next Christmas, the more time you’ll have to put these strategies into action. Do you begin your Christmas savings well in advance? What’s your go-to trick for saving more?
