Christmas Savings Plans: 4 Ways to Save Money for Christmas
With just a month left until Christmas, to avoid spending tons of money and racking up tons of debt buying Christmas gifts, all you need to do is start Christmas savings plans. If you want to know how to save money for Christmas, let’s jump in.
Christmas is a brilliant time for families to unite and enjoy together, but this period can also drive many people to a financial burden. If you do not prepare Christmas savings plans carefully, you may have to face the danger of overspending or a hefty bill in the New Year.
Also, your enneagram core motivations and enneagram types core motivations might affect how you treat money and the way you manage your finances. In this article, we will recommend 4 ways to help you know how to save money for Christmas.
1. Set and stick to your budget
If you want to learn how to save money for Christmas, setting a budget is the first thing you should do in your Christmas savings plans. The Christmas costs are not cheap, which includes food, presents, travel and decorations, among other expenses. Hence, make a list of family and friends you want to buy for and how much you can afford to spend on each after bills and essentials are covered.
Once you set a budget with irregular income, track your spending frequently to make sure you do not lose track. Use a notebook, an app on your phone, or whatever tools work for you. Also, a budget can help you identify your needs and wants to make adjustments and reduce spending on things that are not essential.
2. Taking advantage of online shopping
The early bird gets the worm and the best deal is too. There are end-of-summer, back-to-school sales or Black Friday going on these days, so taking advantage of early good deals is a great way when it comes to Christmas savings plans.
Shipping time is also a reason to do shopping early since the number of consumers using e-commerce is increasing these days and even more during the pandemic. More people tend to do their Christmas shopping online, which means you will have to wait longer for it than ever. So don’t wait till the last minute to buy Christmas presents.
Additionally, when you do shopping online, try using the VoucherCodes ‘DealFinder’ plug-in on Chrome, which can help you automatically find the best promotion available for the site you are on.
Using cashback apps or sites is also a good way for you to save money which offers you rewards or points for doing certain things. Once you set up an account and click on the store you want to buy from, you will be taken to the retailer’s website as usual.
But your purchase is tracked and you can earn a percentage of it back. The amount of cashback you get from each transaction depends on what you are doing, but it usually varies from 1% to 12%. Do not expect to earn a megabucks from using this way, but after a few months cash back rewards or points can add up. Here are a few options you can choose: Ibotta, Rakuten and Receipt Hog, Quidco, TopCashback, etc.
3. Cut back on your spending
Reducing costs and expenses is essential for your Christmas savings plans which is similar to how to save 5000 in a year. Try to cut back on your expenses so that you can take that extra money to your savings fund. So, take time to look at where you can cut costs.
Cutting out cable is one of the first things you should consider. The average cost people spend on TV is about $217 per month. This means if you ditch cable, you could save more than $400 over the next two months.
Dropping unnecessary subscription services should be added to your Christmas savings plans. If you cut down on some of the more expensive subscriptions like your meal kit delivery service, you can save more money right now. Try to find free or low-cost alternatives like Audible which is only $20 per month.
Limiting takeout orders should also be in your Christmas savings plans. There is nothing to stop you from ordering pizza, sushi or other delicious food. Find what tempts you to order out. Imagine that if you are an officer and spend about $8 each lunch, you are wasting $40 a week right there. This small amount can add up to $160 a month and $320 over two months. Hence, cooking at home or packing your own lunch rather than takeout orders could save up for big bucks and you will take them to your Christmas fund.
4. Set up a Christmas savings account
The answer to the question “When do we start Christmas savings plans?” is right now. The sooner you start saving money, the better it will be. No matter what your objectives are, saving and planning today is a smart option. You can achieve your goals if you save 100 dollars a week for a year. Hence, set up a Christmas savings account as soon as possible instead of waiting until December to buy gifts.
You should also commit to putting a regular sum aside each month since a small amount over a few months can make a big difference. Remember to be realistic as it’s better to commit to a manageable amount rather than an unattainable goal.
Few people use sinking funds to prepare for the gift-giving season, so they do not have to come up with a large amount of money at once. If you do not know how to save money for Christmas, consider a few types of savings accounts such as High Yield Savings Account, Separate Savings Account, Cash Envelopes, etc.
In addition to a savings account, you can get started with minimal investment and get the benefit of compound interest investments even if you are on a tight budget.
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