Holiday Prep? Hear Me Out.
Happy New Year!
I spent some time throughout November/December giving tips on how to prepare for the holidays. What I found, however, was that starting the “holiday prep” conversation in early November still did not provide enough time for adequate preparation - especially when finances are involved.
In a recent study, over half of Americans viewed the 2022 holiday season to be more financially stressful than the previous year. As crazy as it may seem, let’s talk about the 2023 holiday season now so you can float through December stress-free.
Start a holiday sinking fund.
Sinking fund: a method of saving money for a specific purpose by setting aside a little bit each month. This is one of my favorite ways to prepare for the holidays and it only takes a few minutes to automate for the entire year. I have a HYSA (high yield savings account) with Marcus and have an account dedicated just to “gifts”. Every time I get paid, $50 gets automatically deposited into that account. I only touch the money in there for gifts; Christmas, birthdays, end-of-year teacher gifts, etc. Another method of doing this is through envelope stuffing. I only recommend a HYSA because you can make a small amount of interest on your money while it accumulates. Whatever method you choose, this will give you cash on hand when you need it.
(Don’t have a HYSA? Marcus’ current rate is 3.3%, but if you join through my referral link we both get 3-months of an extra 1%.)
Shop year round for cash-back & credit card points.
Credit cards are powerful tools when used properly. Many offer cash back, gift cards, or travel incentives. Whatever it may be, save your points throughout the year and cash out around the holidays. Your points could allow your to shop on Amazon or get reduced travel - check your card reward program for details! Pair your regular shopping with 3rd party apps, such as Rakuten, and get even more cash back.
Use 2022 as a planning guide.
If you’re not sure how to begin planning, use this past holiday season as a guide. If you’ll have a child in daycare or school next year, add a little extra to your budget if you plan on giving teacher gifts. If you went over budget this year, look at where you could have saved or how much you will need to increase for this upcoming year.
Book your schedule in advance.
Part of what makes the holiday a crazy time is all of the extra activities that come along with it. Book your regular scheduled activities, such as any dental or doctor check ups, early to avoid the busy season. If you travel for the holiday, book your pet’s resort/kennel stay early to avoid scrambling last minute. Speaking of pets, make sure your pet is up to date on all vaccines required for their kennel stay. By spreading out the extra tasks that come along with the holiday season, you will hopefully eliminate the holiday rush.
Planning year round for the holiday season may seem overwhelming (and downright crazy) at first, but the little steps taken today will provide relief later on this year.
Your friend,
Jackie