Open a Holiday Savings Account Today to Reduce Excessive Spending During Next Year’s Holiday Season
We are officially in the midst of massive financial temptations now that the holiday season is upon us. You might find yourself weathering the spending storm. A holiday savings account can so helpful each holiday season. When you use a special savings account each year to get ready for the holidays, you might experience less stress, reduce financial spending significantly, and lower that sticker stock when the New Year rolls around and you start receiving bills from your credit cards or due loans used to purchase all of those Christmas presents! Here’s what a holiday account is all about.
Holiday spending is an inevitable part of life. Because of this fact, you should look at it like a normal expense. We all pay monthly energy bills, pay for insurance premiums on a yearly basis, pay on our homes, and even put money towards maintenance and repairs for our homes.
The same should be done for holiday spending.
You know you will spend the money, so, it is essential that you plan for that expenditure and do so in advance so that you are able to maximize your savings and not depend on sources of credit at the last minute for the purchases. This is where a holiday savings account comes into play.
High Yield Savings Results in Yuletide Bliss
In order to prepare for the yuletide bliss of next holiday season, the time to open up a holiday savings account is now. Once it is set up, you should have a certain percentage of each paycheck direct deposited into that account.
In order to determine how much, simply create a spending cap for the holidays and determine how much will need to be placed into the savings account to meet your goals.
Let’s say you want to save up $1,500 for the holidays. That means you will need to deposit $125 a month into your account. If you get paid weekly, that is approximately $31.25 per paycheck. By the time the holidays arrive next year, not only will you be able to pay cash for gifts, you will have a little extra for unexpected gift giving as a result of the interest that you will earn on your account.
Maximizing Your Savings
To make the most of your account, take the following steps:
- Automate the amount that you place in savings by having a portion of your check deposited into the account.
- Avoid using the account until it is time to make all of your purchases for the holidays.
- Throughout the year, place extra money earned – such as that from overtime or sales – into the account.
- When the holiday season rolls around, put a gift amount cap on presents with family members and friends. This will help you stretch out your savings. Purposefully plan all of your purchases and track them.
- When shopping for the holidays, choose days where you will save the most and shipping costs are reduced.
If you follow the advice in this article, you will quickly find that you always have what you need, when you need it when shopping for the holidays next year. For more information on opening up a holiday savings account, contact us today by calling or stopping by the following locations: https://somervillebank.net/contacts/