Why to start saving now for the winter holidays

The winter holiday season may seem distant — and during the summer months, many people are enjoying vacation, spending time outside, or with family. Many are not thinking about shopping for the winter holidays or budgeting for gifts. However, planning ahead for one of the busiest seasons of the year can help reduce the strain on your budget and decrease personal stress.

It’s easy to get carried away during the winter holidays and overspend on gifts for your friends and family members. Let’s discuss six practical tips to help you stay within your budget during the winter holiday season and reduce financial stress in the New Year.

Six tips to help you start saving for the holidays

Look back at what you spent last year during this season before you create your budget — and determine what you can afford to spend this year. It’s important to not think solely about gifts and consider all the other expenses that go along with the holidays, including travel, decorations, holiday parties, dinner, and other expenses. Considering all these expenses can help you spread out the cost and avoid an overinflated credit card bill in January.

These six tips can help you budget for the holiday season:

Make a gift list

Make a list of the people who you need to purchase presents for, such as your children, family members, or friends. This allows you to put extra thought into your gift and avoid buying what you can find closer to the holiday season, which may cause you to make impulsive purchases and overspend when you go holiday shopping.

Determine how much you will spend

Decide how much you will spend on each of the people on your list. You may want to buy large gifts for your parents or children and smaller gifts for your friends. Making a list allows you to prioritize your spending and anticipate how much you will need to save to cover the cost. It also allows you to spread these costs out over time or save for certain items that may be more expensive — which reduces the strain on your finances.

Watch for deals

Determining what gifts you want to buy before the holiday season also allows you to keep an eye out for deals such as sales or coupons that might not be available closer to the holidays. This can help you free up more room in your budget to cover other expenses and avoid the last-minute rush leading up to the holiday season.

Track your gifts

It is important to keep track of the gifts you have purchased on your list — and how much you have spent on each gift after using the sales and discounts available. This helps you stay on budget and allows you to adjust your spending if you go over or under your budget. It also prevents the cost of accidentally buying duplicate or additional gifts.

Eliminate additional stress

Starting to shop early helps you avoid the stress of overcrowded malls and out of stock items that you may need to order online at an additional cost. Starting your holiday shopping well in advance can also help prevent you from buying something solely for the sake of getting a gift due to last-minute shopping. This helps stop impulsive purchases that may result in overspending your budget.

Consider using rewards programs

Using rewards points or programs can lead to significant savings for your holiday shopping. Many of these programs allow you to earn rewards for each purchase that you can redeem for discounts, gift cards, or free items. Additionally, you can frequently stack these rewards with other discounts such as coupons or promotional offers to save more.

Take control of your financial future

Starting to shop before the winter holidays allows you to beat the last-minute rush, manage your budget more effectively, reduce your stress, and fully enjoy the season together with your family and friends. It also helps prevent overspending — which will benefit your budget each year.

If you are feeling overwhelmed by debt or financial stress, contact a Licensed Insolvency Trustee (LIT). LITs can help you review all the available debt relief options and choose the solution that works best for your specific situation. Together, we can help you take control of your financial future.