End of Year Concern
Most every year, I face the holiday season with some trepidation. That translates to me being ill-prepared for gift-giving mentally, if not financially.
Anxiety builds as we consider how much will be a fair amount for gifts as we consider what we have in the bank. Tension builds as we start to see Christmas decorations show up on store shelves and we have not made any gift giving decisions.
I try to delay those decisions only to wish I had made them much earlier, as the holidays approach. I cannot seem to run away from holiday preparations, mainly because my wife wants to be able to enjoy the family gatherings and cook up the goodies. When all is said and done, we are always glad we made the effort to shop and cook and entertain.
Ready or not, the season of holiday gatherings and gift exchanges will come with regularity, every year.
Planning Will Help
Most of us have some idea on how much we are willing and able to spend during the holiday season.
I suppose the fact that I feel obligated to spend money over my regular budgeted expenses is what causes my anxiety and some frustration if I cannot freely give like I want to.
The problem comes when we fail to save on purpose for that occasion. That needs to be a part of our saving budget.
Adjust what you need to be able to enjoy the holidays.
Christmas Is Not Unexpected
Emergencies are unexpected. That is why we promote emergency savings accounts, with at least $1,000 to cover the most unexpected expenses. My personal feeling is to have at least $3,000 to allow a cushion to be able to recover from more than one event.
My own experience has been that when an unexpected expense occurs it seems to lead to a couple of other unusual demands on spending. That is why I feel that your goal for emergency savings should be $3,000.
Of course, it may take a while to accumulate that much when you are still struggling to cut expenses to build savings.
However, Christmas is an event you can plan for. It should be a part of your long-term budget.
Plan for the Year
Most of us try to budget for the month. However, each season of the year has its own set of demands on our budget.
Some seasons demand less than others. By looking ahead, we can save more in those less demanding seasons to accumulate for the end of year holiday season, which seems to be one of the busiest times for us financially and for family visiting time. And expenses seem to go up during that period.
Make a Saving Budget
A budget represents our plan to control spending to stay under our income.
That goal is more reasonable if we are able to plan to save for the cushion that we need to absorb the bumps in our financial road over the course of the year.
The question becomes how much do you need to save to be prepared for the most demanding time of the year, the Christmas season, as the year draws to a close?
Have a Number in Mind
It will take some thought to make an estimate of your needs in your savings reserve to make your holidays and other events over the year a pleasant experience.
Your efforts will improve with each year that you try to build your savings and control the amount you spend. The earlier you start the greater your hope is to reach your goal.
The process is more controllable if you take the time to have a number in mind and try to stay within that number.
The Often Overlooked Second Punch
Lest I forget, which I have often done while preparing for Christmas, there is a follow-up concern right after the holiday. That concern is your county personal property tax and real estate tax, for those who have them.
I am certain the timing is not meant to hurt but having that bill due a week past Christmas Day is like a punch in the gut for most of us. I can see why so many people must wait until January or February and pay the additional penalty. They simply do not have it in December.
Be sure to add that number to your savings number!
Plan to Get Ahead
Big numbers can be stressful, until you break them down. Remember, the earlier you start to save the more months you will have to accumulate.
The good news is that if you cannot cut your expenses, you can find ways to add to your income.
With a clear goal you can build a clear plan. If the reasons are clear, you can motivate yourself to make the effort to do what you can to meet your goals.
If you cannot find a way to cut your expenses to be able to build a savings account, then you can find ways to make extra money. Yes, that may mean getting a part-time job or looking for a better-paying job or selling things you do not need. The choice is yours. You are the one to decide to take some kind of action.
Give a Little to Get a Lot
Saving to have a good time during the holiday season is very satisfying. However, saving more to be able to give so that others may be able to eat a good meal or have a winter coat to wear is even more satisfying.
It is that kind of giving that can make you feel much better during the holidays and helps your motivation to sacrifice as you build your savings cushion.
A Savings Cushion Helps You Sleep
When your bed gets old it helps to get a mattress topper to extend the life of your mattress and give you more comfort while sleeping.
The same could be said about your cushion of savings. Knowing that any emergencies can be funded, and recovery can be less stressful will help you to relax and sleep peacefully.
The time it takes to build your savings reserve will be uncomfortable with many decisions to forgo the purchases that could make the moment more enjoyable.
Work hard at saving for the holidays and you will be able to look forward to gift giving and feeding the whole family gathering. Plus, you can help others in need. Peaceful dreams!