How To Start A Holiday Savings Fund Now To Avoid A Money Crunch Later

"How do I start saving now for the holidays?"

"How much do I need to save for the holidays?"

"I don't know to save money up for the holidays."

"I always run out of money when I go shopping for the holidays. Help!"

The single best thing you can do to get a jump on holiday shopping is to start a holiday savings fund today. This will help ensure that you have the money that you need when you need it.

Instead of trying to squeeze all your holiday shopping into the budget in December, try getting a jump on your planning NOW so you will have a much better, less painful experience later.

What is a Holiday Savings Fund?

A holiday savings fund is money saved specifically for your holiday shopping. You can put money away for gifts, decorations, food, entertainment, and every other holiday expense. This will help ensure that you're not scrambling to find non-existent bargains at the last minute when you should be enjoying yourself instead.

Follow these four tips for starting your own holiday savings fund today:

Make a list.

Start with basic categories, like Entertaining, Gifts, Greeting Cards, and Food. From here, you can make a list of what you need to buy for each category. List with as much detail as possible, as this will benefit you in the long run.

  • Give each category a thorough list of items. For the Gifts category, include every gift recipient you plan to give a gift to. Then plan what to give each person or set a spending limit for each gift.
  • Your Food list can include categories for different events and a full list of the groceries and other food items that you need for each event.

What's on your list?


Formulate a budget.

Now that you have thorough lists for each need during the holiday season, assign a rough estimated price to each item and formulate a budget. How much money do you need to fulfill all of your goals for the holiday season?

What's your budget?


Figure out a savings plan.

Now that you know how much you need in total, you can figure out how much you need to put away every month to achieve your goal. Divide your total by the number of months left until Christmas. That's how much you need to save each month.

  • Alternatively, break your totals down into smaller chunks. For example, you can put away $20 per month for food for three months, or $75 for gifts per month in the lead-up to Christmas.

How much can you save every week/month?


Put your plan into action.

As you save money, keep a tally of what you've saved and where each saved dollar is going to go. This will help keep you on track from month to month as you prepare for the holidays.

Can you start immediately?


Tweak your plan, as necessary.

You may need to tweak your plan for various reasons. Your budget needs may change, or the amount of income you're bringing in may change. If this happens, just tweak your plan to address the changes and keep going.

  • The closer you get to your savings goal, the better off you'll be in the long run. Keep close track of your numbers so you can make tweaks and changes as soon as the need arises rather than after the fact.

Does your plan require any changes?


A holiday savings fund will simplify your holiday planning and spending.

The more details you can put into your plan, the better the results will be. The longer you can save, the better the results will be.

A holiday savings fund can be a lifesaver, and prevent you from becoming stressed, frustrated and low on cash.

If you plan and prepare ahead of time for the gifts, meals, decorations and parties, then you will ensure that you have the money early enough to make it all happen.

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