Start Saving Money for Holiday Expenses

Autumn Colors Christmas TreeIf you haven’t already, consider saving up money for your expected holiday expenses.  It’s never too early to begin saving up.  The last thing you want to to is depend on a year-end bonus, or worse, credit cards, to get you by.

That year-end bonus is more likely than ever not to be there.  And using credit cards because you can’t pay for current expenses is never a good idea.  So, here’s my saving suggestions:

Estimate Your Holiday Expenses

Before you start saving, take a moment to define your savings goal.  Consider all the travel you’ll have to do, the extra food you’ll need to buy, and of course, all the gifts you’ll want to give.  In total, the holidays could end up costing $1,000 or more.  How much do you plan on spending?

Start Automating Your Savings Contributions

Next, it’s a great idea to set up automatic savings contributions using direct deposit from your pay check.  You can do this by telling your HR department at work to begin depositing money from your paycheck directly to a designated savings account.  I recommend a high-yield online savings account, like Capital One 360 or FNBO Direct.

Stick to Your Plan

Lastly, stick to your savings plan up until it’s time for the holidays.  Try to avoid tampering with your automatic contribution set up.  Also, make sure you don’t overspend.  Just because you have the cash doesn’t mean it’s okay to stray from the original plan.

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Last Edited: March 7, 2013 @ 11:53 am
About Philip Taylor

Philip Taylor, aka "PT", is a husband and father of two. He created PT Money back in 2007 to share his thoughts on money and to meet others passionate about managing their finances. All the content on this blog is original, and created or edited by PT. Read more about Philip Taylor, and be sure to connect with him on Twitter, Facebook, or view the Philip Taylor+ Google profile.