How to Build a Christmas Fund or a Holiday Fund

Good Morning ??

How are you doing?

I woke up this morning, and I could perceive Christmas. The Christmas feeling rushed me, from the Christmas tree to clothes, to decorations, to attending one event to the other, to different owanbes, to Christmas carols, to vacations and all sorts.

December is one of the months you spend the most. Some even get carried away and spend their children's school fees, only to be borrowing in January to survive.

It’s less than three months until Christmas, but you can still save towards enjoying life, especially if you are an "enjoyment minister" like me.

A Christmas or holiday fund is money you set aside for your Christmas or holiday spending. This can include Christmas, festivals, birthdays, anniversaries and more.?

There are several benefits to creating a holiday fund which includes:

1. It keeps you from being in debt

A Christmas or holiday fund can prevent you from falling into debt or spending beyond your means. One way you can achieve this is by creating a budget. Budgeting gives you an idea of how much you will need during the festival or holiday period, and you would be able to save towards it without ending up in debt.

2. Holiday funds help reduce stress

If you prepare ahead of time and avoid last-minute purchases, you would be able to avoid mental and financial stress. When you have money set aside for the holidays, you can relax and enjoy the season, rather than worry about money.

3. Emergency fund is not a Christmas fund

Some people are already thinking of using their emergency funds for Christmas. No! Remember the purpose of setting aside an emergency fund was to meet unplanned events or expenses. Christmas won’t be an unplanned expense if you start saving from now.?

Just like you have an account for your emergency fund, it is advisable you create an account for your Christmas fund as well.?

How do you build a Christmas fund?

1. Decide the amount you need and create a separate account?

First things first! Estimate how much you would spend comfortably during Christmas without breaking the bank. Once you have decided that, create a separate account for your holiday fund. Most people have more than one savings account, so you can decide to use one of these accounts to save towards your holiday spending, or open an account with fintech banks like Ladda. That way, you will be able to save towards your goal and you will also earn more interest. Whatever decision you arrive at, ensure you do not invest in long-term investments like stocks.?

2. Set up a goal and automate your transfer

Once you’ve decided on how much you want to save and where you want to save it, you’ll have a goal to work toward. The best way to reach this goal is to set up an automatic transfer directly into your Christmas or holiday fund.

The benefit of an automatic transfer is that the money is transferred from your account without your interference. It goes directly into the Christmas or holiday fund until you’re ready to use it.

3. Buy goods on discount or before they become expensive

One prudent decision you will make as you are planning for Christmas is to shop earlier, instead of waiting for the rush hour. You can buy some of the food items you will need during Christmas now, while they are less expensive. Some of the most common goods that are safe to buy in bulk include rice, dry beans, canned foods, canned beverages and soft drinks. These have long shelf lives and are all safe to store at room temperature. Also, you can take advantage of discounted products anytime any of the items you will need for Christmas are being sold on discount.

4. Take up a side hustle for your holiday fund

If you are looking to build up your holiday fund, a side hustle is one of the most profitable ways to do that. The good thing about a side hustle is that you can start an entirely new business on the side, and you can even start small businesses like dropshipping, printing on t-shirts, customised souvenirs and Christmas hampers for corporations.?

5. Declutter unused items to get more money

One possible ways you can make more money during this season is to sell your unused items.?

Scan through your kitchen, wardrobes, children's toys, living room and select those items that you don’t intend to use—the oversized or undersized gowns, shoes, etc. These items can fetch you more money to fund your Christmas spending.

Three ways you can sell your clutters?

• Go on Instagram or Facebook, search for declutter vendors and sell to them.
• Inform your family and friends that you have some items to sell.?
• Search on Google for sites where you can sell clutters in Nigeria.

Not only will you get money for your holiday fund, but you’ll also end up decluttering unwanted things from your house and jump-start clearing out your home for the new year.

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