Does it Seem Like The 2024 Holiday Season is Here Extra Early? Here's Why!
💸 Retailers are encouraging consumers to shop earlier than usual this year
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How rising health care costs could put a dent in paychecks. (SoFi)
So you're upside down on your car loan. You're not alone. (USA Today)
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Fast Fashion brand, Boohoo CEO to step down as strategic review launched. (Ticker Symbol: BOO.L)
📝 Main topic: Holiday shopping is starting early this year. Here’s how to prepare your finances.
Have you visited your local Costco or retail store and noticed the Halloween decorations on one aisle and Christmas decorations on the next? Perhaps you’re seeing more ads promoting gift buying.
If you’re seeing Christmas trees on sale in October, it is not an illusion. Many retailers have started their holiday promotions earlier than usual.
Why you’re seeing so many holiday sales
According to a report by Axios, many retailers fear the 2024 November elections will slow down consumer shopping, so they are trying to get you to make your purchases now.
Many big-name companies have already taken action, such as Amazon, which announced a “Prime Big Deal Days” sale in early October. There are also fewer days between Black Friday and Christmas, so many retailers want to capitalize early.
These early sales and deals can benefit consumers as they mean you’ll have more opportunities and time to find the best deals. At the same time, so many offers can be overwhelming, and you may feel pressured to buy gifts before you’re ready.
Come to think of it, many of us are trying to recuperate our finances after summer travel and vacation.
That said, if you’re feeling the pressure, we have some tips to help you navigate this tricky holiday season!
How to prepare for the holidays 🎄
Starting holiday preparation early is the best way to save money. Here are our key tips on how to stay financially ready for these high-spending months!
1. Create a holiday spending limit
Yes, the phrase “spending limit” can sound restricting. But more than a limitation, it’s a guide to help you utilize your money.
First, create a holiday spending list. This will include all the holiday activities, extra dinners, travel plans, etc. Your holiday list might look like this:
Holiday travel
Holiday events and parties
Hosting dinners
Attending dinners
Holiday decorations
Charitable contributions
Seasonal activities such as ice skating and winter concerts
Emergency holiday funds in case you burn the turkey, need dry cleaning, etc.
With your list, create an estimated cost for each item. Add those numbers up and make that number your savings goal from now until mid-to-late November or whenever holiday events start happening. If the number seems high, you can reduce your expenses by only participating in activities that are most meaningful to you.
2. Start a gift list
Now, make a list of everyone you want to buy gifts for. Next to their name, jot down what you want to get them or a general idea of an item. Then, you’ll write down the estimated cost. For instance, if you know your mom has been wanting an air fryer, you can put down that item and the price of $150.
If you’re not sure what you’re getting someone, write down how much you’re willing to spend on them.
These prices will be your spending limits. Add up the total and see if that number is doable for you. If you need to save for that amount, try a savings or no-spend challenge to come up with the extra money.
The great thing about this list is that it helps you plan ahead and avoid overspending. If you find it difficult to reach your savings goals, you can start to think about alternative gifts for some of the people on your list.
Keep in mind that you should not feel obligated to give gifts if you just can’t afford to.
3. Set up a dedicated holiday savings account as a sinking fund
Once you know how much you need to save, having a separate savings account will help you reach your goal and not dip into your savings before you’re ready.
Consider opening a savings account and labeling it your holiday sinking fund. Once it’s all setup, consider automating your deposits to make saving easier. Make sure your account isn’t connected to your checking account to prevent accidental spending.
4. Incorporate saving money into your budget
Now that you have a target holiday amount, it’s time to build this into your budget. Here’s how to make that happen.
Take the total amount you need for gifts and divide it by the number of weeks until you want to start shopping. This will give you a clear idea of how much you should save each week. Fit that number into your budget by treating it like a bill and make weekly deposits to your sinking fund.
You can set up automatic transfers to make this process seamless.
If your budget looks tight, see where you can make some adjustments. Perhaps you can cancel some subscriptions or limit your discretionary spending to free up more money from your savings.
When saving is part of your budget, you can feel more in control of your spending and saving.
5. Be mindful and wise with your spending
Since you already know some of the gifts you want to buy, you can become an expert shopper.
Sign up for retail newsletters
One tip is to set up a separate email address to sign up for retail newsletters. This way, you can receive coupons and sales alerts right when they happen. With a separate email address, you don’t have to worry about being bombarded with emails on your everyday account.
Be sure to unsubscribe once you’re done with your holiday shopping so you don’t get distracted by various offered and emails.
Use price-watching tools
Another shopping hack to implement is price watching. Tools like CamelCamelCamel for Amazon allow you to track the prices of certain products, so you to purchase an item at a lower price point.
Plan out your in-person shopping
When you’re ready to do in-person shopping, note which stores you want to visit first. For instance, I know I can always find great deals at TJ Maxx or Marshalls, so I’ll shop there first.
Also, try using cash from your sinking fund for in-person shopping and not taking your credit card. This will help you stay within your budget and avoid racketing up any holiday debt.
Utilize coupons and shopping apps
Don’t forget about coupons or cash-back apps like Rakuten to maximize savings. Certain stores like Kohl’s and Target also offer special deals through their apps.
6. Get creative with your Christmas gift-giving
A big part of the holidays is gift-giving, yet gifts can take different forms. For instance, my mom is a shopper, so when giving her gifts, she has most of the things she wants. Therefore, my gift to her is often spending quality time with her.
Review your gift list and see if the items on it match the person you’re shopping for. Could a gift item be swapped out for quality time? Does someone love your banana bread and would prefer that over a t-shirt?
Material gifts can often be costly, but sometimes, a DIY gift or an experience is more cost-efficient and more meaningful.
7. Focus on making extra money for holiday spending
If there’s one thing that would make the holiday season easier, it’s more money. If you find that your budget is tight, consider trying to earn some extra cash you could put towards your holiday savings. Here are some ideas to consider.
Offering freelance services: If you have administrative skills, data entry skills, writing skills, graphic design skills, or other service-based skills, you can consider freelancing.
If you’re crafty, consider selling homemade gifts or baked goods.
Offer help for holiday tasks and errands. You can offer to pick up laundry, do holiday gift wrapping, do dog walking, and other tasks that people often get too busy to do.
Look for part-time seasonal work. Many department stores need help during the holidays and take on holiday workers.
Sell items you own but don’t need or use. Explore your kitchen, basement, garage, closets, etc.
Other helpful holiday tips:
Track your spending: Even with a budget in place, overspending can happen. By tracking your spending, you’ll become more conscious and aware of where your money is going.
Avoid holiday debt: With the deals and sales, Buy Now Pay Later options are bound to pop up. While relying on credit cards or loan programs to buy your gifts may be tempting, it’s best to steer clear. Disconnect your credit card from online stores, shop with cash, and limit your credit card usage.
Factor in unexpected costs: The holidays involve more than gift-giving. They may also involve travel, higher electricity bills (from decor etc), and more groceries from hosting. Putting aside a little extra money for these additional expenses can be helpful and keep you from being overwhelmed.
Saving money for the holidays doesn’t have to be a chore. With the right planning, you can get through this holiday season staying on budget. And if you need some help saving money you can check out our free savings challenge course.
Here’s to a memorable and affordable holiday season!
🥰 Team CGF’s Amazon Favs: Holiday Gift Ideas
Do you have some people on your list who have no idea what to get them? Don’t worry—we have some affordable yet practical gift ideas for you.
Be sure to check back, as there will be a part 2 with even more gift ideas!
P.S. If you make a purchase we may earn a commission, this helps us grow!
Cozy Bliss Faux Fur Throw Blanket
As someone who is always cold, I can never have enough blankets. If you have a friend like me, they’ll love a faux fur blanket to cozy up in during the colder months.
The great thing about blankets is that they can be used in many ways. They can help you stay warm, drape it over the couch to add to your decor, or add it to the edge of your bed for a layered look.
It’s like giving two gifts in one. It’s also machine washable, so it’s easy to care for.
Charcuterie Board - Bamboo Cheese Board and Charcuterie Boards Gift Set
This charcuterie board is the perfect gift for your favorite host. Crafted from high-quality bamboo, its durable and elegant design suits any occasion. It is the perfect addition to holiday parties, weddings, and housewarming.
This is the ideal gift for anyone obsessed with home decor or who loves to cook. This gift set includes specialty bamboo cheese knives, slates that can be labeled with a marker for easy identification, a wine opener, and a carrying bag.
Who comes to mind when you think of this gift?
Initial Jute Tote Bag & Makeup Pouch
Tote bags, purses, and even backpacks make the perfect gifts. Do you know why? Because you need a bag for every occasion.
This embroidered bag comes with the letter of your choosing, making the gift more personalized. It is equipped with a top zipper to help you keep everything safe and secure. There are also side pockets to store your water bottle, umbrella, and everything else you need.
Unlike most tote bags, which have one large space that requires you to dig to the bottom of your purse every time you reach for something, the Initial Jute Tote Bag has inside pockets for easy access to your phone, keys, and other small items.
This is an ideal gift for anyone who likes to carry a handbag. It’s beneficial for teachers, moms, and crafters.
Body Restore Shower Steamers Aromatherapy 6-Pack
Who do you know that’s been stressed out lately? Perhaps you know someone who is overworked but would never take a day off to go to the spa. Chances are we all have that friend or family member who works so hard but barely has time to treat themselves.
If so, you can bring the self-care with these aromatherapy shower steamers. They are a simple way to create a deluxe home spa experience. Transform showers from simple bathing to luxurious sensory experiences with the calming scents of eucalyptus and mint, citrus, lavender, jasmine, bergamot spring, and chamomile essential oils!
With long-lasting scents, you can melt your stress away with a soothing, aroma-filled shower.