I can see some eyebrows being raised already–we haven’t even got to Halloween, and we’re discussing Christmas? The reality is that Christmas, for many of us, means a significant adjustment to our usual budgeting habits. It’s easy for our finances to feel out of control during the festive period between Thanksgiving and Christmas, what with hosting parties, purchasing gifts, and decking out our homes with decorations. It’s an undoubtedly pricey season.
But fear not! Here are four handy strategies that may save you from the potential financial stress of the season:
1. START SAVING IMMEDIATELY
Try to find some wiggle room in your current budget; it’s possible there may be unnecessary expenses creeping into your monthly expenditure. Identify these drainers and cut them out. Then, begin putting away some of your money into a high-yield savings account. This can serve as your Christmas fund, designed to cover the cost of presents and other seasonal expenses, without causing a dent in your December finances.
2. CONSIDER LAYAWAY OPTIONS
Since the 2008 financial crisis, layaway services have regained popularity. Rather than purchasing items all at once, you can reserve them, paying off the cost gradually over the course of a few weeks, making expenses more manageable. Small weekly payments are more budget-friendly compared to larger lump sum payments. Look into how layaway services might aide in resolving cash flow issues during the run-up to Christmas.
3. INITIATE EARLY GIFT SHOPPING
Believe it or not, we have already finished shopping for our son’s gifts and gotten a head start on other family members’ gifts. We prepare a list of intended presents and keep an eye out for any available discounts or sales. Online shopping is especially advantageous before the advent of Christmas shopping season when prices shoot up. Staggering expenses is also less stressful on our cash flow.
4. REUSE AND REPURPOSE WHAT YOU HAVE
Before you make a beeline for the store to purchase new decorations or other holiday-related items, take a moment to reflect on what you might already have at home. Is another set of string lights really necessary? Could you repurpose last year’s wreath? Look through what you have already and you might find that you don’t need as much as you initially thought. This could be a good opportunity to explore DIY projects related to cooking, hosting and decorating–not only will this be cost-effective, but it also helps reduce the storage space required for excess items.
What are your favorite tips for saving money during Christmas?
Indeed, opening a high-yield savings account is an excellent idea and Everbank offers competitive rates.
