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It’s almost time to shop for the holidays, but it’s not too late to start saving. Here’s why it can be beneficial to save for holiday gift costs now.
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We’re at the beginning of October, and while it may feel too early to think about the upcoming holiday season, it will be here before you know it. It’s not too soon to start thinking about how you will afford the holiday gifts you plan to buy in the coming months.
I prepare for future financial expenses, like holiday gifts, by setting aside money throughout the year. When the time comes to cover an anticipated purchase, the money is already in the bank. Here’s why I’m already stashing away cash for my future holiday spending needs, and why you should too.
1. I don’t need additional stress during the holiday season
I’ve already been saving up to pay for holiday gifts, so I feel less stressed this winter. Following this strategy helps to keep my anxiety in check during an already stressful and busy time of year. I feel prepared, knowing I have the cash to cover the gifts I’ll buy.
2. It’s easier to stay on budget while shopping
Since I already set a shopping budget and created a savings plan earlier this year, I know how much I can afford to spend on holiday gifts for my friends and family. With my savings already set aside in the bank, I can easily stay on budget as I shop. Budgeting for future expenses is a big part of my personal finance plan.
3. I don’t want to risk a credit card debt problem
Saving for holiday shopping throughout the year also helps me avoid credit card debt. When I do my holiday shopping and swipe my credit card at checkout, I feel confident that I can afford to pay my entire credit card balance when the bill arrives.
You may rack up debt if you don’t save up for costly purchases before you charge your credit card. Paying your entire credit card bill is best to avoid interest charges. Credit card interest is expensive, so credit card debt can quickly get out of hand if you’re not careful.
Don’t wait to plan for how you will pay for holiday gifts
For many people, buying holiday gifts is a yearly occurrence. Instead of shopping for and worrying about how you will afford gifts a few weeks before the holidays, thinking about your shopping budget and how you will pay for presents earlier in the year is beneficial.
The first step is to set a budget so you don’t overspend. Plus, don’t feel pressured to spend more than you can afford. Then, it’s a good idea to start saving. If you set aside money throughout the year, you can save up well before you do your shopping.
If you do save money over the course of the year, keep your savings in a bank account that earns interest. You’ll make money as your cash sits in the bank. You can automate the savings process so money is transferred from your checking account to your savings account regularly for simplicity.
It’s not too late to start saving for holiday gifts
If you’re reading this and are worried that you haven’t yet saved up for your holiday shopping needs, don’t fret. There is still plenty of time to prepare financially before the holiday season begins.
If you don’t want to stress about money during the holiday season, outline a shopping budget and start saving now. If you need help, check out these budgeting apps. Even some money saved can make a difference and help you make your holiday shopping trips more affordable.
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