Day 35 - Set Up A Christmas Savings Account

This week I opened a savings account specifically for Christmas. Every year the holidays roll around I wonder how are we going to cover all those expenses in one month. Sometimes it is just too much to think about. Like so many people we charge everything. We are lucky to be able to pay it off, but that comes at the cost of sacrificing in January. I don't want to do that anymore.

I figured out how much money we are willing to spend on the holidays for everyone we buy for. I assume that I will be taking that money out on December 1st, 2011. I then got out my calculator and figured how much needs to be automatically transferred to savings twice a month to reach that magic number. When I spread it out, the cost didn't seem too high. In fact I would call it manageable. The nice thing is that it will be accruing a little bit of interest. I also know that when the next holiday season rolls around, I will be able to buy all of gifts with cash. That is a really nice feeling to have.