Naomi F.
I know a lot of people will be very unhappy later this month or early next month, when those credit card bills start arriving. I decided to get off that particular ride a few years ago by saving ahead of time. I looked at what I typically spend, and divided it by 24 (bi-weekly pay). My credit union had converted the Christmas Club accounts into a "Special Savings" account. With each paycheck, I deposited $40 into that account, so that by the end of the year, I could cover the cost of driving for Thanksgiving and Christmas, gifts for the friends and relatives, and money for eating out. I didn't get to drive, but was able to send the gifts (I had purchased most before deciding to keep them safe & stay home), and pay for the holiday meals that i now had to make for myself. I've been doing this for a few years now, and increased it this year since I spent more than expected last year. My friends and family received great gifts, and the credit card did not come out at all, which was the main part of my goal. I was even able to get myself a couple of small things that i liked! Your number will probably be different, and look at it this way- even if you underestimate, you will STILL be in a better position than if you hadn't saved at all!