Those credit card bills from Christmas spending have just landed on the doormat. The festive season can be an expensive season but you don’t need to bankrupt yourself or over borrow in order to have a wonderful time. Making and sticking to a budget, whilst adding money to a Christmas fund throughout the year will set you up for the annual festivities. Let’s have a look at how to create a Christmas fund to make everything easier this festive season.
A Dedicated Christmas Fund
When you set up a Christmas fund you can figure out what you need to save throughout the year. It is much easier to save throughout the year for Christmas than figure out where to find a few hundred quid as advent arrives. We know when Christmas is, it’s on the same date every year! That means we can plan for it. It isn’t an unexpected occurrence like a broken down car. It’s set in stone and that means we can plan towards it. You can set up a savings account attached to your current account, or find a higher interest account that will give you that little bit extra via the interest. However you set it up, be sure that your money is safe and you can easily pay in as well as get the money when you need it.
Pay In Weekly Or Monthly
Look back at how much you spent on Christmas last year. Maybe the year before that as well. Get an average amount and that should be how much you want to save in your Christmas fund. That should be your goal. Then you can divide it by 12 to get a monthly amount you need to save, or 52, giving you a weekly amount. Maybe 50 is easier do you have time to spend it. What does that target look like? Perhaps saving that amount throughout the year is simply not going to happen with your current financial situation. In that case, you don’t want the stress and pressure of finding cash at the end of November either. It is a great idea to cut back on festivities. Slash the present list and have awkward conversations about not buying things this year for extended family. You’ll be so glad you did.
Use Throughout The Year
When you pay into your Christmas fund throughout the year, you can use that money throughout the year too. Who says you can only buy for Christmas when The Pogues are on the radio? If you know what you want to buy people for Christmas, if you see it on offer at a good price in June, buy it! Some prices go up as the festive season approaches, so making use of your Christmas fund when you can get things for the best price is a great idea!
Make Christmas Spending Easier
A Christmas fund makes your Christmas spending much easier. Rather than buying things on credit card and ignoring the fact a big bill will drop through the door in January, you can get a handle on your festive spending. Even a small savings account for the festive season will make things easier. It’ll cut down how much you need to borrow, making those repayments easier. Then maybe next year you can save a little bit more and borrow less. This habit will ensure that you have some money put aside for your festivities.
Save Money On The Christmas Shop
Don’t Be Afraid To Cut Back
Again, don’t be afraid to cut back. The commercial side of Christmas is so often pushed to the forefront of the season. However it’s more important who is around the tree than what is under it. Who is sat around the table rather than what is on it. If you need to cut back on gifts or food (who needs leftovers for a week anyway!), make yourself a list of what you need and stick to it. You’ll might even find that you enjoy Christmas much more without the dark shadow of repayments hanging over your head.
A Christmas fund can be a game changer when you are planning for the festive season. Putting a little bit away throughout the year can help you pay for and enjoy your family Christmas.
