Christmas in July: Jumpstart your holiday planning

Christmas in July: Jumpstart your holiday planning


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SALT LAKE CITY — It's common to see advertisements from retailers touting "Christmas in July" sales this time of year. Maybe you're like me and don't always get lured by the gimmick. But if you're also like me, you might need the gentle reminder of "Christmas in July" to jumpstart your holiday planning and budgeting.

Newsflash: Christmas comes every year on December 25.


For those who get paid every other Friday, the month of August 2012 means an extra paycheck.

Why, if this is true, do so many of us (myself included) put off the planning and shopping until November? Often, this means more last-minute expenses such as rush shipping costs and impulse purchases.

Because the holidays come at the same time every year, we need to budget for them as a monthly line item to prepare. In the same way we fund discretionary expenses in our budget such as clothes and dining out costs, we also need to fund our holiday savings accounts. That way, we can give our credit card a break — while also reducing holiday financial stress.

Don't worry. If you're reading this at the peak of the summer without having already set aside some funds to go toward holiday savings, it's not too late. The month of August might be just the perfect time to begin saving for Christmas. Why? Well, many folks are paid every two weeks, which means two times a year they get three paychecks during the month instead of the normal two. For those who get paid every other Friday, the month of August 2012 means an extra paycheck.

Christmas in July: Jumpstart your holiday planning

So if you can live on two paychecks for ten months of the year, why not do the same for the other two months and budget the extra paychecks to cover some big -ticket expenses so they don't sneak up on you?

This month, start your stress-free holiday spending plan. From your other extra paycheck, set aside some money for your Christmas gifts and holiday spending. To motivate you, think about how it will be nice to start the New Year without an overspending hangover.

Now that you've set aside cash well in advance of the holidays, begin planning for this year's expenses with these tips:

  1. Take stock of last year's holiday expenses. Check your budget from last year (of if you don't keep one, look back at your online banking records or do a quick tally in your head) to total up the estimated costs for all of your holiday expenses. Remember to account for increased grocery costs from entertaining, decorations, shipping and mailing, and other ancillary expenses beyond your gift- giving costs. Once you total up this amount, determine if your holiday expenses for 2012 will need to be the same, greater, or less this year.
  2. Divide up your total budget by five. Now that you've established a number for your total holiday costs, divide that number by five, since we have five months to go until Christmas. Plan to set aside one-fifth of your expenses every month in your savings account to be ready for yuletide spending.

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  1. Start making your list…and checking it twice. Now's the time to allocate parts of your budget to different recipients on your gift list. Who's getting a lump of coal and who is getting an iPad? Decide now and start saving. Once you know how much you plan to spend on each person, you can utilize a free online tool such as the eZ Budget at zionsbank.com/ezbudget. From there, you can create a customized gift plan for every person on your list — complete with notes about preferred sizes and pages of mail-order catalogs. Hearing about Christmas in July shouldn't cause us to complain that marketers are pushing the holiday season too soon. Instead, as we tend to our barbeques, we should be also be looking ahead to build our savings for the time when we roast chestnuts on an open fire.

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Rob Brough

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