Introduction
Holiday shopping can feel financially overwhelming, with expenses quickly piling up for gifts, decorations, and special meals. But with a little planning, you can create a holiday fund without cutting into your everyday budget. By saving just $5 a week, you’ll have extra cash ready when the holiday season arrives—no stress or extra debt required! Here’s how to get started on this simple weekly savings goal and make a big difference in your holiday spending.
1. How Much Can $5 a Week Add Up To?
Let’s start by breaking down how quickly your savings can grow if you set aside $5 a week specifically for holiday expenses:
- 10 weeks before the holidays: Save $50
- 12 weeks before: Save $60
- 16 weeks before: Save $80
It’s a manageable amount that can make a noticeable difference when it’s time to shop for gifts. Even $50 to $80 can go a long way, especially if you shop wisely during seasonal sales.
2. Cut Out a Small Weekly Purchase
One of the most effective ways to find that extra $5 is by skipping a small purchase each week. You don’t need to give up your favorite treats entirely—just skip one or two as a temporary swap to add to your holiday fund.
Ideas for easy $5 savings:
- Skip the coffee shop: Swap out a $5 latte for a homemade version. You could make it fun by experimenting with flavored syrups or whipped cream at home.
- Pack a lunch: Bringing lunch from home one day can save more than $5 compared to eating out.
- Limit takeout meals: Cutting just one takeout meal per week adds a quick $5 to your holiday fund.
- Cancel unused subscriptions: Review your memberships or subscriptions and cancel any you’re not actively using. This simple change can save you well beyond $5 each week!
By focusing on these minor changes, you’ll keep your budget on track while building up your holiday fund without major lifestyle sacrifices.
3. Use Cashback and Rewards Apps
Cashback and rewards apps make it easy to earn extra money without altering your shopping habits. By earning cash on purchases you’re already making, these apps help you save $5 or more each week with minimal effort.
Popular cashback apps to consider:
- Ibotta: Get cashback on everyday grocery purchases by scanning your receipts.
- Fetch Rewards: Earn points for scanning receipts that can be redeemed for gift cards.
- Dosh: Link your card to automatically earn cashback at participating retailers.
Combining these apps with in-store sales can double your savings. You’ll find that accumulating $5 a week in cashback rewards is achievable, especially if you’re consistent with using these tools.
4. Declutter and Sell Unused Items
Selling unused items around your home is another easy way to build up your holiday fund. Not only does this approach help you save, but it also allows you to clear out clutter, making your space feel more organized and refreshed.
Popular platforms for selling items:
- Facebook Marketplace: Sell locally for quick transactions.
- eBay: Perfect for specialty items or collectibles.
- Poshmark: Great for selling clothes, shoes, and accessories.
- OfferUp: Another option for selling a variety of items locally.
Setting a goal to sell just one item a week could easily add $5 to your holiday fund—or even more if you’re selling valuable or in-demand items. Plus, you’ll create a cleaner, clutter-free environment just in time for the holiday season.
5. Use Round-Up Savings Programs
Many banks and apps offer round-up savings features, where they round each purchase up to the nearest dollar and deposit the difference into a savings account. This “automatic” savings strategy builds up extra cash without requiring any additional effort on your part.
How it works:
For example, if you spend $4.30 on a coffee, the app rounds it up to $5 and transfers the extra $0.70 to your savings. Small amounts like these add up quickly, and you may find yourself saving $5 or more each week without even noticing.
Tip: If your bank doesn’t offer this feature, you can manually round up your purchases by transferring the difference into savings at the end of each week.
6. Use a 24-Hour Rule for Impulse Buys
Impulse purchases can add up quickly and derail your budget, especially around the holidays when special deals and promotions are everywhere. Using the “24-hour rule” can help curb these unnecessary expenses and save that extra $5 each week.
How to use the 24-hour rule:
- When you feel the urge to buy something on impulse, wait 24 hours before purchasing. Often, you’ll find that the desire fades, and you no longer feel the need to make the purchase.
- Every time you pass on an impulse buy, transfer the amount you would have spent into your holiday fund.
This practice not only saves you money but also builds awareness of your spending habits and keeps your holiday savings on track.
7. Cut Back on Home Energy Costs
Reducing your energy usage can help you save a few extra dollars each week, which you can put directly into your holiday fund. With a few simple adjustments, you’ll see your utility bills decrease gradually, adding up to around $5 or more in savings.
Energy-saving tips:
- Lower your thermostat: Even a small drop can save around 1–3% on your heating bill.
- Switch to LED bulbs: These energy-efficient lights consume less power and last longer.
- Unplug unused electronics: Many electronics draw power even when they’re off. Unplugging them can help reduce costs.
If you have a programmable thermostat, setting it to lower the heat when you’re out can save even more with no extra effort.
8. Set Up an Automatic Weekly Transfer
Making saving automatic is a straightforward way to reach your $5 weekly goal. If you have a bank account with an automatic transfer option, set up a weekly transfer of $5 into your savings account specifically for holiday spending.
How to set it up:
Most banks allow you to schedule automatic transfers. Set up a weekly $5 transfer from checking to savings so that by holiday time, you’ll have built a reserve without even thinking about it.
Conclusion
By making small, intentional changes in your spending habits, you can build a stress-free holiday fund, setting aside $5 a week in ways that don’t require big sacrifices. Each of these methods—cutting out minor purchases, using cashback apps, selling items, and taking advantage of savings programs—works together to keep your budget on track while helping you prepare for holiday expenses.
With Ava Finance, you can take your holiday savings and financial planning even further. Ava’s credit-building tools and budgeting resources make it easier to set and reach savings goals while also boosting your credit score. Download Ava Finance and start building your financial future—one $5 step at a time.
