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Create a Christmas Fund Now to Avoid the Year End Christmas Crunch - January 2018

 The best way to get a jump on Christmas shopping is to begin with a Christmas savings fund. This will ensure that you have the money that you need for all that Christmas shopping before the very last shopping day - and possibly enable you to shop throughout the year when those great sales and bargains appear! 

So, rather than trying to squeeze Christmas shopping into the budget in December, get a jump on your planning early - that's right, start now - and you'll have a much more relaxed December and Christmas. It's never too early to start saving for the future - including future Christmases.

What is a Christmas Savings Fund?

Simply put, a Christmas savings fund is money saved specifically for Christmas shopping. You can put money away for gift giving, entertainment, food, decorating, and any other aspect of the season beforehand. Doing this means you're spreading your Christmas spending out over the year, and that you're not scrambling to find bargains at the last moment when you should be enjoying yourself instead!

Try these tips for starting your own Christmas savings fund: 
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1. Make a list. Start with basic categories, like Entertaining, Gifts, Greeting Cards, and Food. From here, you can make a list of what you need to buy for each category. List with as much detail as possible, as this will benefit you in the long run.

Give each category a thorough list of items. For the Gifts category, include every gift recipient you plan to give a gift to. Then plan what to give each person or set a spending limit for each gift.

Your Food list can include categories for different events and a full list of the groceries and other food items that you need for each event.

2. Formulate a budget. Now that you have thorough lists for each need during the holiday season, assign a rough estimated price to each item and formulate a budget. How much money do you need to fulfill all of your goals for the holiday season?

3. Figure out a savings plan. Now that you know how much you need in total, you can figure out how much you need to put away every month to achieve your goal. Divide your total by the number of months left until Christmas. That's how much you need to save each month.

Alternatively, break your totals down into smaller chunks. For example, you can put away $20 per month for food for three months, or $75 for gifts per month in the lead-up to Christmas.

4. Put it into action. Now put your plan into action. As you save money, keep a tally of what you've saved and where each saved dollar is going to go. This will help keep you on track from month to month as you prepare for the holidays.

5.Tweak as necessary. You may need to tweak your plan for various reasons. Your budget needs may change, or the amount of income you're bringing in may change. If this happens, just tweak your plan to address the changes and keep going. 

The closer you get to your savings goal, the better off you'll be in the long run. Keep close track of your numbers so you can make tweaks and changes as soon as the need arises rather than after the fact.

A Christmas savings fund will simplify the Christmas planning process. The more details you put into your plan, the better the results will be. A holiday savings fund can be a lifesaver, preventing you from becoming overwhelmed at the last minute. 

If you plan and prepare ahead of time for the parties, meals, decorations and gifts, then you can ensure that you have the money early enough to make it happen. 

Remember, as Cheapskates we aim to own our Christmas every year, and the earlier you start the easier it is!