It’s time to start budgeting for that $ 1,000 expense

0


Image source: Getty Images

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 ​​what 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.

The best credit card erases interest until 2023

If you have credit card debt, transferring it to this top balance transfer card guarantees you an introductory APR of 0% until 2023! Plus, you won’t pay any annual fees. These are just a few of the reasons why our experts consider this card the top choice to help you control your debt. Read our full review for free and apply in just 2 minutes.

Read our free review

We strongly believe in the Golden Rule, which is why the editorial opinions are our own and have not been previously reviewed, endorsed or endorsed by the advertisers included. The Ascent does not cover all the offers on the market. The editorial content of The Ascent is separate from the editorial content of The Motley Fool and is created by a different team of analysts. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


Share.

Leave A Reply