July isn’t a month full of caroling, snow, presents, stockings or gingerbread cookies. It can, however, be a great time to start planning for these things.

I’ve seen the Christmas scenario time and time again and for some reason it happens to people over and over. Christmas time rolls around and “all of a sudden” as if by surprise you realize that you need to go out and buy everyone gifts. The Christmas parties and family activities/meals are “shockingly” accompanied by larger than usual grocery bills. You also might want to take the family bowling, ice skating, or (if you’re adventurous) to the latest Tim Allen Christmas movie.

However the holidays play out, too many people spend the first part of the next year trying to catch up on bills that they incurred back in December. If one is fortunate enough to have an emergency fund, all too many see this yearly occurrence as a qualified “emergency”.

So, why am I bringing this up in July during barbecue season? Christmas (or any other holiday you celebrate) is an event that occurs every year and is something that can be planned for. It’s not all too different than bi-yearly car insurance premiums or your yearly car registration. Money can (possibly should) be set aside during the year to pay for these types of expenses.

A great way to tackle this problem is to label an envelope with the specified purpose and to treat it as a bill every month. If you put away $60 every month, you’ll end up with $720 at the end of the year to spend on Christmas in any way you’d like. People who have implemented this type of thing have also found that they usually don’t even need everything they’ve saved.

If you’re like most people and have those lingering memories of “Christmas debt”, now is a great time to start preparing for what you already know is coming. Trust me, your holidays will be a much happier time if you do.

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