Stretch Your Holiday Shopping Budget - Create a Holiday Shopping Fund

One moment you're in AAFES doing back-to-school shopping and in the blink of an eye, Christmas merchandise lines the aisles. Despite having at least a year's notice, the holidays have a way of sneaking up on busy military families. To help stretch your holiday budget and avoid a large, last-minute expense, consider the following:

Determine How Much You'll Spend
Estimate how much money you plan to spend on your holiday shopping. Take into account gifts for family, friends, teachers and others whom you buy for.

This figure will serve as a guide when you plan your holiday fund strategy.

Stash Your Cash
Setting aside money each month will greatly diminish the financial impact on your year-end funds.

For example, if you usually spend $1,500 on holiday shopping, beginning in January, you'd need to set aside $125 each month—$62.50 from your mid-month and end-of-month pay.

Less Is Better Than Nothing
Don't get discouraged and scrap your plan if you can't set aside funds to cover all your holiday shopping. Instead, modify your strategy.

If you're like many individuals, your gift list includes a combination of products, gift cards and cash. Select a category and set aside the funds to cover those expenses.

For instance, if you usually spend $500 on gift cards, beginning with January's mid-month pay, you'll need to set aside $41.67 each month, or $20.84 each pay period.

Creating a saving's strategy in January is an ideal starting point. However, it's never too late to begin. Every dollar you put away before Black Friday is money that won't end up on a credit card or squeeze the life out of your November and December budget.