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There are five effective strategies that can assist you in setting aside money for the holiday season, hence steering clear of any potential end-of-the-year debts. It’s more beneficial if Christmas is months away as you’ll accumulate more savings over time. However, any amount saved is better than none, and it’s always beneficial to reinforce sound financial practices.
1. Create a dedicated holiday savings account.
Allocate a portion of your income to be automatically transferred into a savings account specifically meant for holiday expenditures. If your income isn’t regular, you can adopt an automatic transfer schedule to this savings account. If you have a tendency to overspend, take cautionary measures to prevent accessing your savings prematurely. A wise approach is to avoid linking an ATM card with your savings account, forcing you to physically visit your bank for withdrawals, thus curbing impulsive spending. Some banks even offer Christmas Club schemes that facilitate auto-deposits throughout the year and issue you a check in November.
2. Save your owed money immediately
Petty amounts of money that you receive as repayments might not seem substantial, but they add up. Try to save these small sums such as retailer rebates, utility or insurance refunds, expense reimbursements, debt repayments, or any sudden cash windfalls. For instance, freelancers could apply this strategy to unexpected job payouts or even set aside earnings from one particular client.
3. Sacrifice a personal indulgence
Saving money by foregoing a small luxury to purchase a gift for someone else is a virtuous act. Cut back on daily luxuries like your morning coffee or weekend pizza. This technique becomes more feasible in the months leading to the holidays, assuming you wouldn’t want to give up your treats indefinitely. A practical way to execute this would be to determine the average amount spent on such items and divert that amount into your holiday savings account regularly, say weekly.
4. Value every cent
Establish a habit to clear any change you have in your pockets or purse every day into a coin jar, operating as a holiday fund. Rather than using a coin-counting machine and paying fees, you can engage your kids in rolling the change and reward them with the fee for their efforts. This gives them a little to spend during holidays, without having to ask you for additional cash. To escalate your savings amount, refrain from using single pennies whenever the total comes up to $.01, and instead add the $.99 to your savings jar.
5. Earn some extra during the holiday season
In my opinion, increasing income is a more efficient approach than reducing expenditures. Time might be limited during the holidays but consider opportunities such as remote call center jobs that could supplement your income. Additionally, numerous money-making apps can help you earn some quick cash while performing actions you would normally do, such as shopping.
RELATIVE ARTICLES
‘A Wise Season: How High-Yield Savings Account Can Assist’ (ally.com)
‘Money-Saving Mistakes To Avoid’ (debtconsolidationusa.com)
‘Little-Known Facts About Savings Accounts That You Should Know'(businessinsider.com)
