Prepare for Christmas NOW

Remember how you felt less than two months ago when you couldn’t get mom that gift you really wanted to give her? Yeah. Painful wasn’t it. Saddening just a little?

Well guess what? It doesn’t have to be like that EVERY. YEAR.

You can change your approach and prepare for Christmas now.

NOW is the time to start saving for Christmas!

I faced a disaster with my finances this past year. I went against my own advice used up the money I had saved in my Christmas sinking fund account and stopped contributing to it by April. Once December got here, I realized the error of my ways and felt horrible about it. That’s why I’m being proactive. I’m using a Capital One 360 Savings Account as my “Christmas Sinking Fund” to save $500 over the course of this year. On Black Friday, I’ll just transfer the money over to my Capital One checking account and shop until December 15th (or until all the money is gone). After that, it is what it is. Gifts will be wrapped. Shopping will cease. And I can enjoy the Christmas spirit without stressing about things that aren’t important.

From Capital One’s website

This idea of a Christmas sinking fund isn’t something brand new. I went with this game plan of mine about three years ago after watching a Budget Girl YouTube video about sinking funds.

Sinking funds are basically “pots of money” that you contribute to over a period of time BEFORE the event occurs. Christmas is an event I know for a fact is coming every year. Instead of crying about money and scrambling to get things together at the last minute, I devise a plan to have what I need when that time comes. I know I spend anywhere between $300-500 for Christmas each year thanks to the many parents, siblings, nieces, nephews, special friends and godchildren God has graced me with. Divide $500 by 12 and you get pretty close to $42 a month.

I also do this for things like car maintenance. I know I need an oil change every three months. I know I’m going to spend somewhere between $40-50 to get it done. So I save $10-15 a month towards that cause.

Sinking funds are super helpful to your mind, stress level and budget. Capital One makes it so easy because you can open as many savings accounts as you need to act as visual sinking funds. You can name each account and put goals on them so you always keep up. You can schedule transfers to each account from a Capital One checking account or a linked outside account. It’s literally one of the best decisions I made in helping me get on track.

So, don’t wait until December 13th to start thinking about buying gifts and scraping up money to do so. Set a Christmas budget for yourself (go through your spending from December to calculate) and create a sinking fund for it with a Capital One 360 Savings Account. I promise you your Christmas will be so much more enjoyable without that added stress.

All my Love,
Cortney

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