8 Creative Ways to Fund Your Holiday Spending Ahead of Time

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The holiday shopping season is just around the corner, and that can mean only one thing. After the tinsel has been taken down and the trees have all been put away, the true horror of the holiday season will quickly become evident.

If you are not careful, the new year could be filled not with well wishes and new opportunities but with old credit card bills and piles of debt. If you want to avoid the holiday debt trap this year, why not pay for your shopping ahead of time? Here are eight creative ways to prefund and prepay your holiday shopping adventures.

1. Stock up on discounted gift cards. Gift cards are great for holiday giving, but you do not have to pay full price. Gift card resellers offer some enticing discounts, and you can stock up now and spend later. Keep in mind that some of these discounted gift cards come in the form of merchandise credits, and their used status is often displayed on the card itself. That means you may not want to use them as gifts directly, but you can still use their value to buy lots of stuff for the people you love.  

2. Raid your closet and storage areas. Remember the unwanted Christmas gifts you got last year, or that designer sweater you now think is hideous? They could all be turned into cash thanks to social media selling and online resale apps. Selling stuff you already have is a great way to raise cash for the new stuff you are about to buy.

3. Take advantage of credit card bonuses. Are you a responsible credit card user, one who always pays off the balance in full? If so you can actually get the credit card companies to pay you, all courtesy of their exciting bonus offers. If you play your cards right you could get hundreds of dollars in cash or gift cards – just in time for the holiday shopping season.  

4. Seek out bonus bank account offers. If having an extra credit card in your wallet is too tempting, what about a new bank account? Banks offer enticing bonuses as well, and meeting a few simple requirements could net you hundreds of dollars in newfound holiday cash.  

5. Divert a portion of every paycheck. If you start at the beginning of the year and divert just $10 to $20 a week, you could end up with at least $500 to $1,000 worth of holiday cash. Setting the transfer up now and putting it on automatic will ensure you do not forget to save.

6. Sign up for a high interest checking or savings account. If you are willing to jump through some hoops you could earn far more interest on your savings than you think. Seeking out a high interest savings or checking account is a great way to fund that holiday spending, especially if you combine it with other strategies on this list.

7. Invest in a high dividend stock or mutual fund. This one does involve some risk, but if you are an experienced investor choosing a high paying stock or mutual fund could be a great way to fund your future holiday spending. There are even online screeners that will help you find the highest dividends, making your job that much easier.

8. Take on a side hustle and save the cash. If you need extra cash for the holidays, a side hustle could be the perfect solution. You can even make it a holiday themed side hustle, like offering to hang those twinkly lights for the neighbors.

Shopping for holiday gifts can be a lot of fun. You get to treat the people you love, imagining the smiles on their faces as they open up those shiny packages. If you want your holiday shopping experience to be less stressful and free of debt, paying for it ahead of time can be a very smart thing to do. The eight creative ideas listed above can get you started, so you can spend more and owe less.