The temperatures are soaring and there won’t be snow in the forecast for months, but we’re already thinking about the holiday season. Before you roll your eyes, let us explain: it’s all about planning ahead, saving money and having a stress-free winter season. If that sounds good to you, let’s get started.
Here’s why you should be planning your holiday spending now—yes, this early!—plus how to budget successfully, reduce your holiday-related financial anxiety and save money in the months ahead. For more tips or personalized financial guidance, please contact us. An Interior Savings advisor would be glad to speak with you.
Make a shopping list and a budget
By making your holiday shopping list early, you can create a budget that stretches over several months instead of several weeks. Start by listing everyone you want to buy a holiday gift for and what you plan on spending (a ballpark estimate is fine—$20, $50, $100). Be realistic and don’t underestimate—you’ve either got to stick to this budget or round up so you aren’t constantly overspending. Be sure to remember your kids’ teachers, that Secret Santa party your office throws every year and anything else that may not come to mind right away. Once you have a detailed budget to work with, you can start saving (and crossing items off your list).
Save now, spend later
Next, start saving. If your holiday budget comes to $800 and the holiday season is 12 weeks away, you’ll need to save just under $70 a week to cover those festive costs. This may involve cutting back on some discretionary spending if your budget doesn’t have a lot of wiggle room—or, you might consider reducing your holiday spending to make it better fit your budget.
If you start saving now and start shopping closer to the holidays, you’ll have a good amount of savings to work with when the time comes. Remember that you don’t want to be shopping last minute, so ideally, your plan should let you finish saving (and shopping) a week or two before the holidays. Start putting money aside in a separate bank account (an online savings account is a great option), keep an eye out for sales on items on your shopping list, and tackle your holiday shopping list slowly instead of all at once. This strategy can make a very expensive time of year a lot more manageable!
Plan for last-minute additions
In addition to budgeting for what’s on your list, plan some for extra expenses: gifts you forgot about or didn’t anticipate buying, holiday party expenses, new outfits for those parties, charitable donations at community events, and whatever else life throws at you. Having a contingency fund isn’t just smart—it’s often the difference between taking on holiday debt and sailing into the New Year with a clean slate. Good luck and happy holidays in advance! It may be summer now, but winter will be here before you know it.