October is here, and that means the holidays aren't far behind. If you didn't start saving for them earlier in the year, now's the time to start. Here are seven ways to save up before the holidays.
1. Create Your Holiday Budget ASAP
First of all, create your holiday budget as soon as possible. Now is a good time to sit down and map out what you can realistically spend over the next couple of months. Consider things like gifts, travel, food, decorations, and any other expenses you can think of that you'll need to account for during November and December, including your regular bills, groceries, fuel, etc. Determine how much extra money you have and plan to put that toward your holiday needs. Don't forget to leave some flexibility in the budget for unexpected expenses and for your own entertainment and impulses that may arise.
2. Look for Temporary Side Hustles
If your main source of income isn't going to adequately provide for the spending you have planned, it might be time to explore options for a temporary side hustle. In fact, October is when many retailers, delivery services, and event companies are specifically looking for extra help for the upcoming holiday season. A second, part-time job in one of these fields may provide the extra income you're looking for while only working a few hours a week over the next couple of months. You can also look into other gig-economy options or selling items online.
3. Trim Your Expenses
Determine if you have expenses that you can eliminate. You may be able to save by eliminating some subscriptions and memberships. Look at your overall spending habits. Maybe you can spend less at the store and save gas by running multiple errands together. Maybe you can do a little less impulse one-click shopping online. Make a pot of coffee at work or home rather than running out to Starbucks each morning. Review your bank statement to identify patterns that you can tweak to keep more cash in your account.
4. Buy Generic (Even if Just for a Little While)
One great way to reduce expenses is to find cheaper alternatives. Nowhere is that probably easier to do than at the grocery store. Buy generic when possible, even if it's just for the next couple of months.
"Even if you’re an avid fan of a certain cereal, snack or yogurt brand, see if you can give the generic brand a try for a little while," says Ramsey Solutions.* "Small tweaks like this can really make a difference when it comes to hitting your Christmas savings goal. If you go completely generic for just 10 meals over two months, you could cut more than $50 from your grocery bill! Not ready to make the full switch? No problem. Just start with generic staple items like milk, spices, flour, sugar and produce. Even small shifts in your shopping cart can lead to big savings over time."
5. Start Shopping
It may sound counterintuitive to start shopping when you're trying to save money for the holidays, but the reality is, the earlier shopping you're able to do, the less you'll need as the holidays get closer. It's worth noting that good deals don't only happen on Black Friday, Small Business Saturday, and Cyber Monday. Use the internet to identify great deals now and in the near future. Getting an earlier start on shopping will help you spread out the financial load, and you might even be able to get popular items before they sell out. Even if it's just one or two gifts a week, you'll thank yourself later if you get more of your shopping done now. It will also free your budget up during the holidays.
6. Learn From Last Year
Look at how you spent during this time and the holidays last year. Determine if there are ways you can improve upon that or if you were satisfied and can replicate it this year.
"Look back at how much you spent last year during the Christmas season," suggests Jeff Michael at Credit.org.** "Did you stay within your budget? Were there any purchases that felt unnecessary afterward? Use that information to make smarter choices this year. Maybe you overspent on wrapping paper or made too many trips to the store at the last minute. Learning from past mistakes helps you plan better and focus on meaningful traditions rather than excess."
7. Open a Dedicated Savings Account
It can help to have a dedicated savings account specifically for holiday funds. Instead of trying to leave money in your checking account where you might accidentally spend more than you intended, open a new savings account for your extra money. This can be separate from your primary savings account, and once you tap into it for holiday expenses, you can continue using it and get an early start on saving for next year.
It may only be October, but it won't be long until the holidays are upon us. Don't get caught financially off guard by failing to save enough for holiday expenses. Follow the tips above to make sure you're prepared.
* https://www.ramseysolutions.com/budgeting/find-money-for-christmas
** https://credit.org/financial-blogs/christmas-savings-plan-how-to-save-for-holidays