It’s officially July! The sun is out, and summer is fully here! The last thing on your mind is probably December and Christmas, but it’s going to be here so soon! Now is the best time to start a sinking fund for those Christmas expenses!
Christmas is not an emergency
I talked about this in a previous post about saving for an emergency fund, but thought I’d say it again. Christmas is NOT an emergency. This event comes every December 25th, so it should be expected in your budget. Don’t get to November or December and think “well I don’t have any money for Christmas presents, so I’ll just put them on the credit card.” Using Christmas as an emergency is so not okay!
The Sinking Fund
A sinking fund is basically setting aside money each month for expenses that are coming up. If you know that you need new tires in 6 months that would total $600, then you save $100 a month for 6 months. And then when the time comes, you have $600 saved up to put to your tires! A sinking fund makes those big purchases so much easier and less stressful. It’s always nice to buy something when you have the money saved up.
P.S. For any of you guys looking to buy an engagement ring, make it a sinking fun! If you want to buy a $3,000 ring in 6 months, put $500 aside each month. Small increments will always feel better than the large sum!
Saving for Christmas
So start saving this month for your Christmas fund! Saving for gifts for friends and family, Christmas decorations, a Christmas tree, and all other Christmas activities. December is an expensive month with holiday expenses as well as higher electric bills, so don’t let this month sneak up on you!
You don’t need to go crazy on Christmas gifts. You don’t show your love for others by buying them expensive gifts, but by the time and energy you put into your friendships, but I know that giving gifts is always fun! Write out people that you think you will give gifts to, and how much you plan to spend on each. If you have 3 siblings, a husband, parents, and grandparents that you want to buy something for, total up how much you plan to spend, and divide it by 6 months from now through December! If you plan to spend $300 total for Christmas, that is only $50 a month. That’s very doable!
So start making your giving list, and check who’s been naughty or nice. 🙂