Save Now, Buy Later: Holiday Budgeting to Increase Your Savings

The Christmas holiday season is very quickly falling upon us, and we’re incredibly glad (and ready) to say goodbye to 2020. Although the holiday season this year may be one for the history books, with limited travel and socially-distanced events, there are still many costs that will add up. The key is to start planning for the season now to make sure you’re on top of your spending balance. Here are some easy ways you can prepare for the holiday season.

Start Planning the Present Budget 

Although we love receiving presents, giving gifts definitely takes some big punches to our budgets. Make a list of the people you’ll be giving presents to and how much you want to spend roughly on each. This total is now your present budget, so be more on the generous side of money allocation to buffer overspending.

Start Saving Now for Extra Expenses

The holiday season is the best time of year. People aren’t working, carols are playing, and everyone just seems to be in a great mood. The downside is that there are many costs involved – from Christmas drinks with friends, presents for family, costumes for parties and boxing day sales. We’re still many weeks away from this season, so you should start looking at putting aside some extra money every week in anticipation. You’ll be grateful for this in a couple of months.

Shop Smart

It’s always a good idea to start buying presents before December so you not only beat the Christmas rush but also to spread out your spending so you’re not hit all at once. You can also find some great sales on at this time of the year. Shopping online is a great way to find the best prices or even get sign-up discount codes. Try using the browser extension Honey which will automatically find you the best deal on a website.

Rebalance Your Budget

Analyse your current budget and see if there are any changes that you can make to get some extra cash. Maybe it’s limiting the coffees you spend each week, going out to the movies or cancelling a subscription for a few months. Give up indulgences and prioritize what you’re going to need to survive the holiday season.

The holiday season can be both fun and stressful but following these simple budgeting tips will help you focus more on the former. Start putting these recommendations into place now, the earlier you start saving, the easier it will be to manage this break.