If 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.
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.