A sinking fund is just you deciding ahead of time that you are not about to let December stress you out again. Instead of swiping your credit card and figuring it out later, you are stacking small amounts of money right now. That way when the time comes, it is already handled.

Christmas is one of the easiest sinking funds to set up because the date never changes. You know exactly when it is coming. You can literally automate this and remove yourself from the equation. The goal is to walk into December already paid up, unbothered, and not putting gifts on a credit card you are still paying off in March.

If you want to save $1,500 for the holidays, you need a plan. If you start 33 days before Christmas, you need to save about $45 a day. That might feel heavy right now but it is doable if you cut back on extras. If you start earlier in the year, it gets so much easier. Saving $1,500 over 12 months is just $125 a month. That is why starting your Christmas sinking fund in January is the ultimate baddie move.

If you like to see your money and feel your money, cash stuffing is for you. Cash envelope budgeting makes your money real. When you physically put cash into an envelope, you are way less likely to spend it on something else. This is where the A6 Patent Leather Binder comes in. This bold black binder features a high shine patent finish and a magnetic snap closure. It comes with double pocket envelopes so you can track your Christmas savings right alongside your other goals.

If you prefer to keep your money digital, you need a high yield savings account. A regular bank account pays you pennies. A high yield savings account pays you real interest so your money can grow while it sits. You can set up automatic transfers from your checking account every payday. My favorite place to park my sinking funds is Wealthfront. Click here to join me at Wealthfront and we both can earn a +0.75% APY boost and a 0.50% investing deposit match.

If you have ever said "I am not doing that again next year," this is how you actually don't. Set up your sinking funds today. Whether you use the cash stuffing method or automate it with a high yield savings account, just start. Take your power back from the credit card companies. Be intentional, get rich, and enjoy a completely stress free Christmas.