As of October 7, 2024, Christmas is about 11 weeks away. You may be worried that you didn’t save enough to buy gifts and enjoy the holiday’s festivities. Don’t worry; you can build a holiday savings plan with some planning.
How to Plan Your Christmas Gift Budget
First, list everyone you want to buy a gift for. Then, decide how much you want to spend on each person. Remember, it’s the thought that counts when it comes to gift-giving. You don’t have to break the bank.
Setting Up a Sinking Fund for Christmas
A sinking fund is a great way to save for a specific goal, like Christmas. Look at your budget to see if there’s room to create one. You’ll need to decide:
- How much you can afford to save based on your paycheck (weekly, bi-weekly, or monthly)
- You can choose whether you want the money by Black Friday, which is only seven weeks away, or Christmas, which is about eleven weeks away!
Cut Expenses for Quick Savings
For a shorter savings time, you’ll need to be more aggressive. Ask yourself:
- Can you pause any subscriptions or memberships for a few months?
- Could you cut back on eating out or your daily coffee?
Christmas Saving Challenges: 7-Week and 11-Week Plans
Here are two saving strategies to help achieve your goal. Choose the one that works best for you.
To save $250 in seven weeks, you must save $36 weekly.
To save $500 in seven weeks, you must save $71 weekly.
To save $1,000 in seven weeks, you must save $143 weekly.
Or, if you have 11 weeks:
To save $250 in 11 weeks, you must save $23 a week.
To save $500 in 11 weeks, you must save $45 a week.
To save $1,000 in 11 weeks, you must save $91 a week.
Use a High-Yield Savings Account for Extra Earnings
Once you’ve chosen your savings plan, put your money in a high-yield savings account. It earns more interest than a regular savings account, which can help boost your holiday budget.
Track your progress
Tracking your progress is key to staying motivated. Use a savings tracker to visualize how much you’ve saved and how far you have to go. Get your savings tracker!
Final Tip
Remember, save earlier in the year if you need more money for the holidays. Starting early will help relieve stress and allow you to enjoy shopping.