Merry Christmas in July! Next week is LEON Day!
Ok, I admit it, I am one of those crazy people who can literally listen to Christmas music year-round. It drives Mr. Bean NUTS!
He is firmly in the belief that Christmas music should only be played in December. Preferably, only on December 24th. Maybe the 25th.
I am surrounded by summer fun activities right now. (6 July birthdays in our family means a lot of cake and parties!) But in the back of my mind, I’m dreaming of cooler days and hot cocoa!
And with that comes Christmas planning!
Christmas in July: Start Saving Now
Christmas falls on December 25th every year. It never changes. Yet, so many people act like they’re surprised as it draws near.
All these “unexpected expenses” pop out of nowhere, draining their bank accounts and stressing them out.
Well, I have a solution for that: create a Holidays Expected Expenses Account! I use a free savings account at Ally.com.
Figure out how much you plan to spend on Holiday gifts, activities, and meals. Divide that by how many paychecks you will have between now and Christmas, and start saving, NOW!
I usually plan to spend about $850 on holiday stuffs. We have a specific Holiday Savings account and put away about $70 each month. That’s only $35 dollars a check.
Because that small amount is automatically (How I Hide Money From Myself) going into the Holiday Fund each paycheck, I am better prepared for the holiday season of gift spending and dinners.
We usually have a tendency to go over budget a little bit: those last-minute teachers and aunties who fly in from out of state always get me!
By already having the majority of our holiday spending covered, I don’t feel as stressed throwing a few extra dollars in from my December budget when I find a good sale on chocolate-covered cherries or discounted gift cards.
Christmas in July: Shop for Gifts Throughout the Year
Did you know it is perfectly acceptable to purchase Christmas gifts in August?
Just because you plan to give your art-loving niece a gift in December doesn’t mean you can’t take advantage of the awesome back-to-school sales on art supplies in August.
If you’ve got just a little bit of storage space in your home, create a “gift storage” and take advantage of sales throughout the year!
Amazon has its “Prime Days” in July. (Their version of Black Friday, in July)
There can be fantastic discounts on items you’ve had your eye on for gifts. Having a ton of July Birthdays in my family, I totally take advantage of Prime Days to get discounted gifts while earning extra money back on my Amazon Credit Card.
Watch for annual sales throughout the year and stock up on gifts for the holidays:
- Back to School Sales in August/September for the arts and crafts lovers in your life
- End of Season Clothing Clearance– living in Hawaii, we live in shorts and tank tops but the best time to get them on clearance is the end of summer. So I load up and store them for Christmas. If shopping for kids ahead of time, always get a few sizes bigger. They keep growing for some reason!
- Clearance Sections– Stores like Target and Walmart ALWAYS have a clearance section. Sometimes, it’s totally worth it to cruise through and see what’s available. Coffee mugs and water bottles make great “anyone gifts” for teachers, security guards, or those surprise aunties.
If you see something at a great price that is just perfect for someone, snag it and stash it in your “gift storage.” (I use a bin on the top shelf of the closet) Just make sure to write a tag on it or create a list so you remember who you already shopped for and what you have.
It doesn’t make any sense to “save money” by purchasing a gift on sale if you forget about it and rebuy something again later.
Christmas In July: Discount Gift Cards
Buying gift cards at a discount can be a great money saver!
Sign up on gift card exchange sites like GiftCardGranny.com or Raise.com. They sell gift cards for less than face value and often have sales if they get too many in stock.
I’ve used them for years and have gotten some great deals. Yay for paying $80 for a $100 gift card!
You can give the gift card itself or purchase gifts using the gift card for discounted gifts. Use Discounted gift cards to purchase items on sale and save even more!
And discounted gift cards can be used year-round for last-minute gifts for birthdays, retirements, or whatever.
Take Advantage of Cash Back Credit Cards
This Holiday Money Saving tip is only for people who are completely debt-free and can safely handle credit cards. (Check out my article on How to Pay Off Debt if you are not quite there yet.)
One of my favorite ways to save on holiday purchases is to use cashback from credit cards.
We carry 4 different credit cards in our wallets. Each one has a specific purpose depending on how much cash back they offer in different categories.
- 3% on groceries
- 5% on Costco
- 5% on Amazon & Whole Foods
- 3% on Drug stores
- 4% on Gas
- 2% on Everything Else
By using these cards on regular purchases throughout the year, and paying them off EVERY MONTH, we are able to rack up some pretty decent cash back. We then use this cashback to add to our holiday budget if needed.
Credit card cashback offers usually include discounted gift cards as well. So get those free gift cards from your cash back, then purchase items on sale, and hopefully, you’ll even have some leftovers for a treat or two for yourself come Christmas!
Wrap-Up
Right now, the weather outside is frightful but the air conditioning inside is so delightful. Even though we’re all enjoying sunburns and late-night BBQs now, the holiday season is just 5 months away!
Instead of letting it take you financially by surprise, yet again, take a few minutes the next time you jump out of the pool and set up a Holiday Savings account.
Set up those automatic deposits and know that when the jolly fat man starts showing up everywhere you turn, you will be financially ready to enjoy the season. Even if you need to start layering up again.
Check out some other Money-Saving Tips for the Holidays.
How do you plan for the holidays? Share your own money-saving tips and tricks in the comments below. And make sure to follow us on Social Media.