The holidays, what a magical time of the year. Between the festivities, the food and the friends and family, it’s certainly a special season. It’s also an unexpectedly expensive time of the year. So many dinners and parties to go to, decorations to decorate with and gifts to purchase. And what would the holidays be without supporting the local charity, and oh gosh of course the latest winter fashions are a must if you’re too look good at the holiday party. Come January 2nd, we’re often shaking our heads looking at our bank balances and credit card statements. After my first major experience with all the holiday expenses, I decided to start saving early each year, in anticipation of an expensive season.

Why start saving early?
Because you never want to say no to something during the holidays. You always want to go out to that holiday party, feel obligated (but also want) to purchase gifts, and love the fun holiday outings with friends and families. All these activities aren’t cheap and can really put a hurt on a budget that’s not prepared for the hit. By acknowledging this fact and planning ahead, one can enjoy the holidays without worrying about their wallets.

How should I start saving early?
If you have the capabilities, take a look at what you spent during the last holiday season. Take that number and divide it by the number of months till the holidays and try to put away that amount each month. Or just try to put aside an extra $50-$100 in October and November. My budget has a social/fun category, so obviously December’s fun and social activities will eat away at that set aside amount. I also will try this year to put aside an extra $100 each month until December (ok, so it’s only two months till then but that extra $200 will come on handy this December). By forgoing $200 worth of fun in October and November, I’ll be able to have that much more fun during the holidays.

Where should I put that money?
Somewhere safe, where you won’t be tempted to spend it. You can certainly keep it in your bank account, but frequently remind yourself that it’s there and that it can’t be spent until the holidays. If you don’t trust yourself, keep it in cash and put it somewhere safe until the holidays. Go to the bank right after you get paid and withdrawal it as cash. That way you’ll be sure to not spend it.

Ben, this whole idea is obvious, why write an article about it?
Because I’ve been there before and know friends that have been there too and we’ve all not prepared and overspent. In some cases I’ve had to say no and that was really a bummer. The holidays sneak up on us, think about it, it’s already October. Geez, it felt like yesterday was July, summertime! The holidays will be here before we know it. Unless your budget is setup to account for more spending money during the holidays (kudos to you), you need to make a halfway conscious effort to prepare for it. The best defense is a good offense.

Wishing you a very happy 2013 holidays! (I figured by saying that it would help you remember that the holidays are coming up!) Start saving now!

Hope you enjoyed the article, here are some others for you to check out:

Get rich by habit, not by luck

Big picture planning

When your roommates are also your parents