3 Tips To Prepare For The Holidays : Personal Finance Edition

Can you believe we're in the middle of September already? Back to school flew by, and we are now all getting into our new groove for the school year.

As we are extremely busy during this time of year, it is important to remember that the holiday season is right around the corner, and with it comes many expectations, and let's face it - stress. Particularly financial stress.

While it is never possible to be completely ready for it, I think it is important to plan ahead to make sure the holiday season does not destroy our progress towards financial freedom. Because yes, it is possible to enjoy the holidays and indulge while staying financially stable. Many people wait for the new year to make changes in their lives - but why not start now? It'll be much easier to stay consistent in January if you start now, and the changes you make in the following months can have a tremendous impact in your financial way.

So I've compiled my 3 best tips to prepare financially for the upcoming holiday season:

Set A Holiday Budget Early

Budgeting is always a great tool to use in order to achieve goals. So, if you're setting a money goal for the holidays, budgeting will be an essential step.

Of course, the first thing that always comes to mind is gifts, but think about all of the expenses that come with the festive season in your life, like transportation (hello, air travel!), restaurants, activities, decorations, etc. You can decide which things are priorities, and allocate your dollars thoughtfully.

When you combine all of these expenses, you will come with a total amount to aim for. It will also help you avoid impulse shopping. Don't forget to leave yourself a buffer - so no bad surprises come your way. You can use my Budget & Expenses Tracker Notion Template to get started.

Start Saving Weekly In A Sinking Fund

Once you know just how much you will need, you can then start saving early. By building yourself a fund specifically for that purpose, you will gain clarity on your progress and see what steps you need to take to get where you want to go.

Dividing the total amount you need by the number of weeks left before you need to make your first purchases will tell you how much you need to set aside each week. You can do it monthly, or even daily if that's what you prefer. The idea is just set money aside consistently to avoid financial stress when December comes.

Take Advantage of Sales And Discounts

When you know exactly what you plan on buying, you can shop deals and discounts early and save a lot more than if you wait at the very last minute to do your shopping. Doing that can also help you see what is affordable and what isn't.

After listing all the things you want to buy this holiday season, you can plan strategically and watch the price fluctuations in the next few months. Black Friday and Cyber Monday are particularly interesting in that regard, as they will undoubtably offer many interesting deals that you can take advantage of.

This exercise will help you stay mindful with your spendings and choose wisely when you buy your holidays essentials.

Those 3 tips are only meant to help you think about the holiday season through the lens of budgeting and planification. This time of year often comes with financial stress and strains as people tend to overspend and get themselves in trouble - trouble that will follow then into the new year. You are ultimately in control of your actions, but when you prepare accordingly and when you are honest about your personal financial situation, you will see that it is possible to enjoy the holiday season stress-free.