Those who know me well know that I am a planner. I plan out meals, my family's activities, and my spending. I'm one of those annoying people who already have the money saved up for my next oil change and my next vacation. I know not everyone can relate to this level of saving and planning, but what you can do is take some steps to start saving now for the upcoming holidays. Who knows - you might even like being prepared and less stressed this holiday season and continue the savings trend into 2025, but we'll talk more about that in an upcoming post. Here are some easy ways to help get you started:
Automate your savings. I'm not one who typically promotes big companies, but the online savings account through Discover is just too good to pass up. With a 4% APY (yes you read that correctly) that pays out monthly right into your online savings account, the interest you can earn is unmatched. We've personally had this online savings account for over 5 years and have had no issues. There is no minimum opening deposit required, no monthly fees, and automatic transfers from your bank are simple to set up. I manage our savings through their app right on my phone, and I especially like that the interest earned is compounded daily and paid to me at the end of every month. I have it set up so that money automatically gets moved into this online savings account every time I get paid, which makes holiday spending much less stressful. The only con? There are no brick and mortar locations and no ATMs so you have to be comfortable moving money online or through their app. Interested? Check out Discover's website to learn more here.
Budget for the holidays. The holidays are expensive! It's not just the gift buying that can cost hundreds of dollars but also the meals, events and activities, and travel. With Thanksgiving and Christmas only a month apart, it's smart to have a category in your budget for holiday spending. If you aren't able to save regularly for the holidays by including it in your budget, consider starting to save for it now. Yes, now! Even if you simply use an envelope to put some extra cash in each week, you'll be glad you did when the holidays get here. Christmas is only 8 weeks away, afterall. I know Halloween is this week but a visit to Walmart will reveal all of the Christmas items already on display. The phenomenon known as the "Christmas Creep" is hard to miss and is a timely reminder that Christmas will be here sooner rather than later.
Consider drawing names this year. Do you have a big family? Do you get overwhelmed buying gifts for aunts, uncles, grandparents, cousins, friends, neighbors, and so on? Talk your family into drawing names! This is a huge money saver and was a real game-changer when my family started doing it many years ago. We poll our family and see who wants to participate with the understanding that they must follow two strict rules. One, you only buy for the person whose name you drew. Period. Two, you can't spend more than $30. We draw names on Thanksgiving Day every year and exchange the gifts at a family get-together on Christmas Eve. Easy! Not only does it save us all hundreds of dollars, but it also reduces the stress that can often come with trying to buy the right gift for so many people. This is a great idea for coworkers to do, too. Try it out this year and you'll see how much easier and cheaper it is for everyone.
With the holidays rapidly approaching, it's smart to start saving now. Use these next 8 weeks to better prepare for the upcoming holiday spending season. I know you'll be glad you did!
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