Early Holiday Shopping

It’s only September and the holidays are getting closer.  While the holiday season doesn’t really kick into gear for another two and a half months or so, you know that it will be here before you know it.  Late November will roll around and you’ll be wondering how the time has gone by so fast. Even with a number of months to go, you can help reduce your holiday stress levels if you take the time to save a little money now and start planning ahead.

The Emergency Fund / Holiday Fund!
Hopefully by now you’ve established an emergency fund and have begun paying down that debt, but what about setting aside money for the upcoming holiday season?  How do you plan on paying for all the gifts, travel, and food?  If you’re like most people, the holidays will come and little planning will have gone into how much money it will all cost.  This leads to overspending, tapping into funds meant for something else, or just putting it all on a credit card to be dealt with later.
With everything seeming to be rising in cost lately, there is more reason than ever to save a little bit of money.  The first thing you’ll want to do is set up a holiday fund.  This money should be set aside specifically for holiday expenses.  If you’re good at budgeting and fairly disciplined, you can do this within your existing savings account, but for most people, the folks at GenerationXFinance.com recommend opening a new one so that you can keep this money separate. There are many different options for a savings, but you can get a rate of 3.75% in a WaMu savings, or open a savings account in under five minutes with no fees, no minimums and FDIC insurance at ING Direct.

Cash (Debit) vs. Credit Cards

 The buy now pay later attitude that many consumers have adopted should be prevented to avoid the holiday blues to enjoy smarter purchases.  If used right, debit cards can save money, bankrate.com, “the growth of debit cards has confused some consumers about which are the better brands of plastic -- debit or credit.

All in all, growth in the use of debit cards is a positive development. Each debit card purchase represents a balance that is not being financed on a credit card. Every year, scores of holiday purchases linger on a credit card statement long after the holiday cheer has subsided, generating finance charges throughout the New Year, and possibly longer”.
Cash can be a rewarding way to make smart holiday buys, allowing individuals to keep track of purchases right to the penny avoiding finance charges. 

Prepare Your Gift List

While there are certainly some new products to be released as we get closer to the holiday season, you probably already have a pretty good idea of what type of gifts to buy the people on your list.  So, you can begin listening for hints on what to buy and start putting together a list now.  One of the most stressful parts of the holidays can be the last-minute gift shopping. You end up fighting crowds, possibly unable to find what you’re looking for, and it is just not much fun.  By preparing your list a month or two in advance, you can begin to get your shopping done earlier so that you can avoid those last-minute shopping trips.  Savings can be realized by giving home baked cookies, crafted photos or the traditional sewed garments are still favorable holiday gifts.  Other gifts to consider are the gifts of time; babysitting, car washing and house cleaning are also heart loving holiday gifts. It is important to mark the people on your list that would enjoy these homemade delights.

A Little Bit Goes a Long Way

As you can see, preparing for the holidays in September isn’t so bad. You don’t have to get in the holiday spirit while most people are still taking summer vacations and the kids are just getting back to school, but taking a few small steps today can yield huge rewards later this year. Saving a few bucks a week will help your budget, and planning for gifts or travel in the coming weeks and months will lead to a stress-free holiday season. Well, maybe not stress-free.

Source: http://genxfinance.com/2008/08/11/reduce-your-holiday-stress-by-saving-and-planning-today/