With the summer heat at its peak, Christmas seems a long way off. But, starting to save for Christmas now is a wise financial strategy for several reasons not least because it allows for better budget management, spreading the cost over several months rather than facing a financial burden as the holiday season approaches.
Thinking about saving for Christmas now can also lead to more thoughtful gift purchasing, avoiding last-minute panic buys which can often be more expensive and less meaningful. Additionally, starting early can help you take advantage of sales and promotions, potentially leading to significant cost savings. With inflation and price fluctuations, prices for goods and services can increase as the holiday season nears, so being able to buy gifts a little earlier can be beneficial.
Lastly, saving some money for Christmas now will definitely help your stress levels when the holidays arrive, allowing you to enjoy the festivities without the worry of financial strain. At the end of the day, planning ahead can ensure a merry Christmas that doesn’t break the bank.
While the idea of saving for Christmas early might seem like a good one, the challenge is how to make it happen. The easiest place to start is to draft a plan with clear objectives. How many people do you want to buy gifts for? And how much do you want to spend on each gift? What other Christmas expenses do you need to think about? Making lists and preparing a budget will set clear parameters on how much you want to spend and therefore how much you need to save.
This exercise can also help you understand if your expectations are realistic, given your current financial situation and income. Understanding this now gives you plenty of time to adjust or plan alternative ways to celebrate Christmas without incurring unsustainable expenses.
Once you have a target of how much you need to save, the next step is to put a plan in place to achieve it. When it comes to saving money, whether it’s for Christmas or any other occasion, a good place to start is by cutting unnecessary expenses, such as unused subscriptions, and redirecting those funds towards your savings. By being more mindful of your spending, it’s possible to enjoy a festive Christmas without financial stress.
Whatever amount you are able to save each month, make sure it goes into a separate account to avoid the temptation of accessing the funds for other purposes. Also, make sure that you put the money you want to save aside at the start of the month or whenever you receive your salary. Again, this helps to ensure the money is not spent. You can also think about how you might make your Christmas savings go a little further by opening a savings account which pays a higher interest rate, such as MeDirect MeMax instant access account which pays a rate 2 per cent per annum, monthly.
The festive season is often a period of financial stress. This year, make sure things are different by planning early and taking the action required to save now and make Christmas more enjoyable for you and your loved ones.
The MeMax account is available in Euro and rate quoted is gross of tax, paid on a monthly basis and is compounded. Account holders can deposit up to €2,000 per month up to a maximum account balance of €50,000.
MeDirect Bank (Malta) plc, company registration number C34125, is licensed by the Malta Financial Services Authority to undertake investment services under the Investment Services Act (Cap.370) and the business of banking in terms of the Banking Act (Cap. 371). The Bank is a participant in the Depositor Compensation Scheme established under the laws of Malta.
