Apologies for being a wet blanket on your summertime vibes, but Christmas is indeed lurking just around the corner. Autumn, with its allure, always makes me excited. However, the ominous holiday season brings along the financial anxiety of Christmas. For an average American, Christmas rattles their budget by around $1,000 per year. These figures can shoot stress levels through the roof, especially when not budgeted for in advance, as it often necessitates borrowing and subsequent debt repayment along with interest charges in the new year. Doesn’t sound like the holliest, jolliest time of the year, right? The key to maintaining your financial stability is to start planning and saving as early as possible.
Below, find five effective strategies to start padding your Christmas budget right now:
1. EMBRACE AUTOMATIC TRANSFERS
First, estimate your holiday spending by listing out all foreseeable expenses. Divide this total by the number of scheduled transfers before the time comes to start purchasing gifts. Choose frequent transfer intervals, weekly or monthly, from your checking account into a savings account. Automize these transfers to effortlessly accumulate savings over time. My preferred strategy is to begin with $50 monthly savings near the end of summer, upping it to $100 in fall, and finally reaching a peak of $200 per month in November and December.
2. OPT FOR CASH BACK BENEFITS
Another suggestion would be to make use of cash back and loyalty rewards programs, both from credit cards and online shopping platforms like Swagbucks and Ebates. These platforms let you accumulate points which can be redeemed into cash or gift cards. With a prudent and timely start, you can earn a substantial amount towards your holiday budget. Additionally, using cash back credit cards for regular expenses like groceries and gas can fetch you considerable savings. Ensure you use them wisely and pay off the balances regularly.
3. REDUCE SOME EXPENSES
Seasonal frugality can often pave the way for festive expenditure. Scan your spending habits to identify areas where temporary cutbacks could boost your Christmas savings. Consider trimming lavish gym memberships, expensive TV subscriptions, and restaurant meals. You can also evaluate your grocery, phone bills, or insurance premiums for possible economies. Even slight lifestyle adjustments can snowball into significant savings over time.
4. OPEN A NEW BANK ACCOUNT
Leverage the option of cash bonuses offered by some banks for simply opening an account with them. With certain conditions met like setting up a direct deposit, it’s an easy way to augment your festive budget, fascinating even more if you’re not particularly satisfied with your current bank.
5. INVEST TIME IN SIDE JOBS
Increased earnings can expedite your journey to financial preparedness for the holiday season. Engage in part-time jobs like landscaping, babysitting, petsitting or even seasonal retail work. Flexibility-seeking individuals can consider driving for Uber or Lyft. They provide weekly payments and even offer exciting sign-up bonuses.
Have you kickstarted your savings for Christmas? What approaches are you utilizing?
Sources: SmartAsset.com
