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334 Days to Go
By Daphne | January 25, 2008
Christmas was a month ago and some people are still recovering from their holiday debt. After you pay those bills down, start saving for Christmas. If you spent what you could afford or waited until after Christmas to get people gifts because you didn’t have the money before Christmas, start saving for Christmas.
It may seem crazy to start saving for something that is 11 months away (334 days to be exact) but if you start saving for Christmas now, even just a little each week then you will have an advantage over the other people and won’t have to suffer the post-Christmas blues because you overspent.
Saving for Christmas doesn’t mean that you are neglecting other savings plans, bills or investments. Think about if you started saving $100 a month next month and did that through November you would have $100. You can even break it up into smaller chunks. Instead of saving the $100 all at once, maybe you want to save $25 a week for 40 weeks. Even starting late, you still are only saving or 10 months out of the year. So if you didn’t want to save money one month in the summer or if you don’t need that much then you could cut back.
Lets say you don’t have a regular income or work on commission, you can still do this. Just make sure that you have money for your needs first (including savings) then you can put a little aside for later.
Whenever you get an unexpected chunk of money, instead of just blowing it all, put some aside. So if you are entitled to a tax refund, use some of that to help boost your Christmas savings, spend some and put some into your emergency fund. Christmas and your emergency fund should not be the same.
If you are saving for Christmas throughout the year and put it in an interest bearing account you will earn a little money
Don’t be saddled with debt after Christmas, plan for it. This way you aren’t stuck with credit card bills after you have enjoyed Christmas. This savings scheme also works if you want to save for a vacation, or other large purchase.
For those who lack the diligence to save and not touch the money before its needed, check with your bank about Christmas savings programs. Some banks and credit unions have established programs. If you have the willpower, open an online account, regularly transfer money into the account and watch it grow until its needed. If you have more willpower but forget, you can schedule recurring transfers from your checking into savings. Take your spare change, dump it into a jar over the course of a month and deposit it into an account and you will see how much you can accumulate. It may not be a consistent amount, but it will be a start.
Topics: January 2008 |