Planning For The Holidays with Gina & Juan
On this episode of Financially Naked: Stories from The Financial Gym, Gina and Juan, two Certified Financial Trainers, are here to talk about how to budget for the winter holidays! It's October, and it's never too early to prepare for the festive season.
From making a list, checking it twice, and budgeting for everything else that comes along with the holidays, you can plan ahead. Trainers at The Gym coach clients through this every year! Gina and Juan are here to share all the tips and tricks they know to make the process as stress-free as possible so you can enjoy the most wonderful time of the year without going into debt.
Budgeting for Gifts
Start by making a list of everyone you have to buy gifts for and setting a budget for each person. Add some extra room in there.
If you're a long-term planner, you can keep lists throughout the year and note when someone mentions something they want, or you see something that would make a great gift later.
Once you have a list of gifts you need to purchase, you can start saving for the total amount while keeping an eye out for sales and deals on those list items.
If you need help determining how much to budget, the total you spent last year can be a good gauge. Pull out the statements or spreadsheets and add it all up.
Planning early allows you to take advantage of deals and discounts from things like Prime Day and Black Friday over the next few months.
Gifts don't always have to be physical. For young children, contributing to 529 or other long-term savings accounts can be a great gift, especially if they already have all the clothes and toys they need.
Remember to budget for gift wrapping paper, bows, ribbons, and shipping expenses if you send gifts to distant recipients.
Beyond Gift Giving: Other Holiday Expenses
Gifts are not the only holiday expense to plan for. Some other things you may want to budget ahead for include:
Traveling! If you plan to travel during the holidays, airfare, train tickets, gas, and accommodations should be considered.
Holiday decorations like lights, ornaments, wreaths, or a Christmas tree if you celebrate with a new one each year.
Clothing for the season, festive accessories, winter gear, or formal wear for gatherings and special occasions.
If you're hosting holiday parties or gatherings, there are food, drinks, decorations, and entertainment expenses to plan for.
Sinking Funds & Saving for the Holidays
A sinking fund is a separate savings account or category within your budget dedicated to covering expected expenses. These are a great tool to plan for the holidays.
A sinking fund allows you to enjoy the holiday without dipping into your emergency fund or going into debt to celebrate. This gradual approach is less stressful than waiting until the last minute.
If you need to save $1,000 for the holidays, saving $100 per week starting in October can get you to that total. The earlier you start, the less you need to save each week, making the goal more manageable. A little bit here and there can really add up.
Final thoughts and tips from Financial Trainers
The holiday season rolls around every year, so these expenses are predictable. Planning ahead can save you stress later.
We are always giving gifts throughout the year. Start planning for all of the gifts you need to give as early as January.
If you're unsure where to start, review last year's spending and divide that by the number of months you have left to save.
If you want to work with a Certified Financial Trainer to help you plan for the holidays, schedule a free warm-up call today! If you have any ideas or questions for the show, send an email to trainerpodcast@fingyms.com.
Resources
Meet The Trainers
Meet Gina Funaro, Level 2 Certified Financial Trainer
Juan Valeriano, Level 2 Certified Financial Trainer