Christmas has now come and gone. The last thing you may want to think about right now is budgeting for next year already. It is never too early though to start budgeting and saving for the holidays. Here I am going to share how to start your budget for Christmas 2024! No matter how little or how much time you may have to save, it is a good idea to start saving.
The holidays are over, and you're probably feeling exhausted from the hustle of it all. Did this holiday season leave you with a lot of bills? Do you wish you had saved more money in advance? Now is a great time to start planning ahead for next year. With just a little bit of planning on your part today can lead to big savings tomorrow!
Who are you buying for?
Make a list of all the people you plan on buying gifts for. Remember to include teachers and anyone else you want to add. Keep this list handy so that you can add to it if needed.
When making a list, a good place to start with is writing down everyone that you bought gifts for this year. Consider if there may be any changes though for next year. For example, are you going to draw names with some of the people on your list? Therefore, you would be buying for fewer people. This gives you an opportunity to really go through your list with a fine-tooth comb. This also can give you the chance to think about if you may want to consider adjusting the cap that you spend.
How much are you spending?
Do you already have a set amount that you plan to spend on each person that is on your list? Looking ahead, do you feel this number may work for next year? Have you and your family or friends decided to change the price amounts for next year? Be sure to take these things into consideration when determining your numbers.
- Estimate how much you are going to spend
Once you have a list of the people you are planning to buy gifts for, you can estimate how much you are going to spend for each person. Whether you know how much exactly you are going to spend or not, writing down an estimate is a reminder that it is not set in stone. Adjustments can be made if needed.
- Use percentages
Another idea to try is using percentages instead of specific dollar amounts. For example, you may decide to spend 75 percent of your total holiday budget on gifts and divvy the remaining 25 percent among your other categories. Choose what is easiest for you.
Don't forget about stocking stuffers!
Stocking stuffers can really add up in cost. Be sure to factor is this amount too. Are you happy with the amount you spent this year? Do you feel this would be a good amount to stick to for next year? If you are thinking about ways to spend less on stocking stuffers yet get items others will still love, Dollar Tree has some great stocking stuffer ideas.
Categorize items
There are many things that may need to be purchased in addition to gifts and stocking stuffers. Some include food, cards and travel expenses if you plan on traveling. Setting up categories for each one can help you to make sure you budget enough money for each category. It also helps to ensure that we do not leave anything out.
Saving
Once you have your list of who to buy for made and how much you would like to spend, it is now time to save. The sooner you begin saving, the less you will need to set aside to save each month. I have an example below.
- $1000 to save for Christmas over twelve months= approximately $83.30 a month to save or approximately $19.20 a week.
- $1000 to save for Christmas over six months= approximately $166.70 a month to save or approximately $38.50 a week.
Ways to save money
There are different ways to save money. One is to simply keep an envelope marked Christmas money to keep your savings placed in. Here are some other ideas too.
- Savings account
If you do not feel like keeping the extra cash on hand or you feel it may be too easy to spend it, consider a savings account. Having a direct deposit weekly or monthly into it could help keep your savings on track. If you choose to deposit it yourself, consider putting it on your calendar as it is an important thing to do.
- Reward app
I have enjoyed using the reward app called Fetch. It is simple and you earn points as you scan your receipts. You can then turn your points into gift cards once you have reached a certain number of points. You can add up your points and save them to use during the holidays if you want to. You can use gift cards to purchase gifts, food or cards for example.
Shop anywhere. Snap every receipt. Earn FREE gift cards! 🎉 Sign up for Fetch with my code "7KH5G" and get 2,000 points when you snap your first receipt #ShareFetchRewards https://fetchrewards.onelink.me/vvv3/referraltext?code=7KH5G.
Conclusion
Whether you are buying for one person or several, start planning now so that when the next holiday season rolls around, your budget will be ready. In order to make the most of your budget, you need a plan. As with any financial goal, it is important that you have a strategy in place before beginning. This will ensure that when December rolls around next year and you are knee deep in gift shopping for everyone on your list, you will hopefully be less likely to worry about how much money is left over or what bills still need to get paid this month.
Do you have a favorite budgeting tip for next holiday season? Please share in the comment section. Thanks!
Leave a Reply