The holidays may still seem a long way away, but September is actually a great time to start preparing for them financially.
Waiting until November or December to think about holiday expenses can put a lot of pressure on your budget. Starting now gives you time to spread those expenses over several months.
Begin by looking at what you spent last year.
How much went toward gifts? Did you travel? Did you host a meal? What about decorations, charitable giving, holiday parties and special activities?
Write down your best estimate of what you’ll need this year.
Then divide that amount by the number of paychecks or weeks remaining before the holidays.
For example, if you expect to spend $800 and have 16 weeks to prepare, that’s $50 per week. That may sound much more manageable than finding $800 in December.
You can make the process even easier by setting up an automatic transfer to a dedicated savings account each payday.
Another strategy is to look for opportunities to put unexpected money toward your holiday fund. A cash-back reward, work bonus, rebate or money from selling unused items could give your savings a helpful boost.
And don’t forget to make a gift list early.
Knowing who you’re buying for—and setting a spending limit for each person—can help prevent last-minute overspending. It also gives you time to shop around rather than purchasing whatever is available when the holidays arrive.
Most importantly, decide in advance how you want to pay for your holiday spending.
If you plan to use credit cards, make sure you have a realistic plan for paying the balance. A holiday gift shouldn’t become a debt that follows you into the new year.
The holidays are about spending time with the people you care about, not spending the most money.
Starting a little earlier can help you enjoy the season with less financial stress and more peace of mind.
