Starting early is key to meeting holiday savings goals

Bills that come after the holidays are some of the most dreaded of the year.

A little planning, however, can go a long way toward easing the monetary pain that often adds stress to the season of giving, said Emily Reinhardt, a personal finance blogger who writes regularly for Mid American Credit Union.

“The sooner you can start, the better,” said Reinhardt, of Omaha, Neb. “It’s hard to think about saving for the holidays when it’s hot outside and you’re sweating, but it’s important. Something I like to do first when I’m trying to save is to cut out some expenses I don’t need, such as trips to coffee shops. Things start to add up after a while.”

Last year, the average U.S. consumer spent about $720 on holiday gifts, according to research firm Gallup. An eye-popping 25 percent spent more than $1,000.

Putting a plan in writing (or in a Word document) also can be a good practice. A holiday budgeting tip sheet put together by Commerce Bank says that the holiday shopping season can be especially “enticing” for consumers and that resisting the temptation to go all out is key.

In short, Santa isn’t the only one who should be making a list and checking it twice.

“Sticking to a list will help you resist the temptation of impulse buys,” the sheet reads. “A list also allows you to shop the holiday ads for best prices before heading to the mall.”

While concentrating on gift-buying is a big part of executing a successful savings plan, Reinhardt reiterated that there are other built-in costs associated with the holiday season.

“You really have to remember that it costs money to go to grandma’s house and to eat meals on shopping trips,” Reinhardt said. “Those travel expenses and other hidden expenses can add up, too, so it’s good to plan for those as well. For some people, it works to save money ahead while others choose to earn money over the Christmas season by getting a part-time seasonal job. It’s all about what’s best for each individual.”

One silver lining for consumers is that gas prices are expected to remain low leading into next year.

As for saving, a little bit each week can go a long way. As a Kansas Credit Union Association tip sheet points out, saving about $20 every week starting now will mean a consumer will have a nest egg of about $300 come late December.

“You may need to tweak your plan to allow for changes in income or changes in your budget,” Reinhardt said. “Don’t stop if this happens, just change your plans a little and keep on going."

This story was originally published September 17, 2015 at 11:31 AM with the headline "Starting early is key to meeting holiday savings goals."