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Average spending on Christmas gifts, according to a Gallup poll, is almost $ 1,000. That’s a huge amount of money, and if you spend near the average amount, you could easily find yourself looking for credit cards to cover your costs.
Rather than finding yourself stuck with vacation debt that could follow you into the New Year and beyond, why not take a different approach this year?
Start budgeting now to be ready for the holiday season
Although the holiday season arrives every year, far too many people fail to plan for it in advance and instead end up hitting the holiday season without any extra money in the bank set aside for gifts.
With a few months to go, however, this year you don’t have to let those expenses weigh on you. You can determine how much you want to spend on gifts for loved ones at this time. Then you can start putting money aside each month so that you are ready when it comes time to go to the mall and start shopping for gifts.
If you spend about what the average American does and need $ 1,000 by the end of December, for example, you could set aside about $ 335 in October, November, and December. You can rework your current month’s budget to free up that money now. While it may require some sacrifice, it will be much easier to save $ 335 per month over a few months than it will be to earn $ 1,000 all at once when the holidays draw near.
To plan and prepare for the vacation, start by deciding what your budget will be. You can make a list of who you need to buy gifts for and how much you plan to spend on each person, then get a good idea of ââwhat your total spending is likely to happen to. It’s also a good idea to give yourself a little wiggle room, as unforeseen expenses are sure to arise if, for example, you miss someone on your list.
Set the money aside in a high yield savings account until you are ready. This can help you avoid the stress of having a hard time figuring out where your vacation budget will come from. Some stores also allow you to put away, which means you go in and pay a little over time for an item and can take it home once it’s been fully refunded. This is another option if you have a specific and expensive gift in mind.
Whichever approach you choose, the earlier you start, the more time you have to build your vacation nest egg over time. If you start working on your gift budget now, you can enjoy buying Christmas presents this holiday season without having to worry about where the money is coming from or how long it takes you. will take to pay off the bills. later.
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