If you want to save money for Christmas, you must first establish a budget. Setting aside a fixed sum on a monthly basis will be more effective than saving whatever you have. It is better to set a modest target than aiming too high. Starting small and saving regularly will result in a much larger sum of money in 12 weeks. You can start by saving as little as $35 a week. After that, you can add up to about $1,000 in savings.
First, you should determine how much you can spend on Christmas gifts, food, and drinks. Once you have this figure, divide the money into separate envelopes. This way, you will have more money available for the holiday and will not be surprised when you open your bank account in January. You can also consider the time you will spend gifting, such as pet or babysitting, house cleaning, or other tasks. Once you have enough money, you can cross them off your list.
As the holidays creep closer, start saving early. Christmas displays and songs start appearing in stores in early November, giving you more time to save. Despite the increased time to save, remember that Christmas is synonymous with spending. According to the National Retail Federation, Americans will spend $798 billion on Christmas gifts during the 2022 holiday season. By implementing a budget early, you’ll have a better chance of spending less this season.
Another way to cut down on Christmas spending is to reduce your regular expenses. If you are used to buying a cup of coffee every morning on the way to work, consider switching to making your own. If you are used to spending a couple of pounds each day, this will amount to tenner a week at least. You can start thinking about which holiday fantasy is worth sacrificing. A few small sacrifices each week will add up over time.
A good way to cut the Christmas present bill for a circle of colleagues and friends is to set up a Secret Santa. Basically, everyone puts their name into a hat or a random draw, and the other person’s name is revealed. Then, each person must buy a gift for that person, without spending more than your budget. There are plenty of online generators that will make this a simple process.
If you still want to buy gifts for your family and friends, consider buying them from thrift stores. Many people donate clothes and toys, some even with tags still attached. You might be surprised at how much you can save by giving these presents to the less privileged people in your life. Don’t forget to make your friends and family homemade gifts instead of buying expensive gifts. If you are short on cash, make sure to give them something nice, such as a decorative pillow or a photo. Lastly, consider shopping on Free Shipping Day, which happens on Dec. 14 this year. Free shipping day allows hundreds of stores to offer free delivery on your orders, which means you can save even more money!
In addition to shopping wisely, you should also consider purchasing generic brands instead of expensive brand names. These products are just as good, if not better, than the name brands. Another way to save money is to play a secret Santa. This way, you can make sure that all your guests have a good time while you save money for Christmas. When planning your menu, you can freeze leftovers to save even more money.
Then, if you’re planning to retire before Christmas, you can look for Christmas savings clubs. These are short-term savings accounts that you can find in many smaller banks and credit unions. Alternatively, you can open a separate bank account with a no-transfer option. Make sure not to take out a loan to fund your Christmas Club savings account, as you will be able to make only six transactions per month.
Using your creativity to earn extra cash is another great idea. If you enjoy crafting, you can make Christmas decorations, ornaments, or jewelry. You can then sell these items locally or online. You can even sell non-festive items, such as homemade Christmas desserts. If you’re feeling creative, you can even try selling these items for profit. In addition to these options, you can try a side hustle to earn extra cash.