SALT LAKE CITY — There are just over 150 days until Christmas, and financial experts say now is the perfect time to start planning your holiday budget.
The "Christmas in July" concept has gained popularity with retailers looking for a mid-year sales boost, but it also presents an opportunity for consumers to take advantage of special sales and begin budgeting for the holiday season.
Nico Pesci, founder and CEO of Momentum Wealth in Utah, recommends creating a dedicated savings account specifically for holiday spending. "Most local credit unions are not going to charge you a fee to have more than one account. So there's no challenge there in having 4 or 5 accounts, and one's labeled savings, one's long-term savings, one might be bill pay, and in this case, one might be for Christmas," Pesci said.
This approach helps people assign specific purposes to their money and prevents overspending during the holiday rush. "It allows you to assign that dollar to a task and put it in a place that's only used for that task. It's a nice way to make sure you're not co-mingling your funds and you're staying on budget," Pesci said.
Pesci emphasized that being intentional with your money will always benefit you in the long run, and having a specific account for gifts helps keep finances organized.
For many people, shopping in July provides a more relaxed experience compared to the hectic holiday season. "For a lot of people, Christmas in July becomes this concept where they want to enjoy the fun of going out and being creative and finding a fun gift for someone they care about. By doing it in July versus, you know, in the craziness of the end of November and the beginning of December, it allows them to do it at a slower pace," Pesci said.
Your local bank or credit union can help set up automatic transfers on a schedule to allocate money to your holiday fund. Starting now means you can continue saving into next year, putting you ahead for future holiday seasons.
