Another holiday season is approaching! I don’t want you to be caught off guard with the holidays this year, so the game plan should be to start saving money now! If you already have a sinking fund or savings account for the holidays, you’re already a few steps ahead. If not, there’s still time to accumulate some funds for the holiday season!
Here’s the thing – the holidays come around every single year. We know they do. That means we should be planning for them as soon as possible. Doing so allows us to save small amounts consistently over time. That helps us avoid pulling from other savings or using credit cards. Keep reading for 6 reasons to start saving for the holidays now.
6 Reasons to Start Saving for the Holidays Now
#1 The sooner you save, the least impact to your budget
One of the most important reasons to start saving for the holidays early is because the earlier you start, the less impact there is to your budget. What I mean is, if you give yourself 6 months to save for the holidays and your goal is to save $600, then you’ll only need to save $100 a month. If you give yourself 3 months to save, then you’ll need to save $200 a month. That’s a big difference in your monthly budget.
Think about a realistic amount you would want to have saved for the holidays and then give yourself as much time as possible to save for it. Once you know the details (amount and timeframe) of your savings, you can add the line item into your budget to ensure you save what you need. Every year, I run an 8-week savings challenge for the holidays. Join the free Frugal Fall Savings Challenge now!
#2 Waiting until the last minute brings unnecessary stress (and spending)
The holidays should be an exciting and enchanting time! They should not be a time that’s filled with stress and anxiety because you failed to plan properly. If you want to ensure the holiday season is as peaceful and stress-free as possible, start saving early!
Although you may not save enough to cover all of the costs that come during the holiday months, any savings can make a difference. Saving ahead of time allows you to buy your peace of mind in the future. Sometimes, you can’t put a price on that!
#3 Poor planning equals poor performance
Honestly, this applies to every area of life (can you tell I’m a Virgo LOL ). When it comes to saving for the holidays, poor planning equals poor performance. Waiting until the last minute to plan your gifts or make the purchases could result in you spending way more than necessary or not even getting the gifts you want.
Planning should be done from a financial perspective – i.e. figuring out how much you need to save by when. But, it should also be done from a gift-giving perspective. What gifts do you want to purchase, and for who? Going into the holiday season with that game plan sets you up for a smoother holiday season!
Take it a step further and plan out your holiday events, engagements and travel. Where will you be going? When will you be going? Do you need things to bring to holiday parties? Planning ahead eases the stress and ensures you’re not spending more than you should be.
#4 If you save now, you’ll have cash ready for holiday shopping
Going into debt for the holidays should never be an option. Check out the article 5 Reasons Not to Go Into Debt During the Holidays if you want me to elaborate more on that. So, if the goal is to avoid debt for the holidays, saving ahead of time is the best way to guarantee you won’t have to. You can always leverage savings you already have, but wouldn’t it be nice to use a savings dedicated solely for the holidays?
Nine times out of ten, your current savings already has a purpose. It’s like you’re taking from one goal to pay for another – delaying the original goal. Instead, start saving now for the holidays. If you don’t need or use all of the savings, you can keep it handy for next year or allocate it to something else.
#5 Saving now allows you to shop early
It’s safe to say that shopping ahead of time is a good way to avoid overspending and keep your stress levels low. However, in order to shop early, you need to save ahead of time! Saving as soon as possible in preparation for the holidays allows you to pick up things over time. You don’t have to do everything in one go, and you can give yourself time to catch sales.
#6 You can manage your spending expectations better when you know what you’re saving
At the end of the day, when you know what you can afford to save, you know what you can afford to spend on the holidays. Giving yourself a savings plan early allows you to manage expectations with yourself. No crazy spending. No expensive gifts (unless it’s in the plan). Plenty of opportunity to manage expectations with others as well.
If you know that you can save $500 for the holidays and you don’t plan to use debt, then you can price your gifts accordingly. You can avoid spending that full amount on one or two people and make sure it stretches through everyone’s gift. Remember, the earlier you start saving, the more you will have!
Whether you start with one item on this list or tackle all five, each of the items on this list will help you take your finances to a new level. The items on this list will produce the long-term results and success you’re worthy of. You can do it! Just stay the course, stay consistent, and stay motivated. Have you done or started doing any of these things? Drop a comment below to share!