Even if you follow a carefully crafted budget for the whole year, the holiday season can leave your finances in shambles.
Because each of us tends to seriously overspend once the holiday season rolls around. With all the food, gifts, and general merriment surrounding the season, it's hard not to open your wallet on more than one unplanned occasion.
But there is a solution: start your very own holiday savings account as soon as humanly possible.
If you've followed the Atlas Credit blog for any period of time, you've surely come across our recommendations to keep both a savings and an emergency fund. With money set aside for each of these, you're usually ready to tackle any unexpected incident that requires more money than you have allocated for your typical monthly budget. Plus, a savings account is a healthy means of growing your finances for the future.
But neither of these should be used to cover the holiday extras. In fact, if you made a habit of dipping into your savings every year just to cover your Thanksgiving and Christmas excess, you'd find yourself starting over at near zero in savings every year.
Savings accounts are usually about snowballing that money over time. But a holiday savings is all about spending. In other words, they're way more exciting!
Here's how you can get your holiday savings going strong months in advance:
Start putting away whatever extra you find at the end of each month after all bills are paid and regular savings are contributed to. The money you would ordinarily count toward entertainment, snacks and general non-essentials should be placed into its very own category called holiday savings.
Remember: while you may feel disappointed at the end of each month that you aren't able to use this extra cash on your usual instant gratification purchases, having that money piled together once the holidays around will be oh so sweet.
Then, check and see if you've recently increased the amount you spend on any other categories in your budget. Maybe you've allocated more toward new subscription services, a larger data plan, or even a few more bucks into your actual savings account after each paycheck. Cutting from these will not harm your finances because they were bonus to begin with, and that money placed into holiday savings will be used for even greater enjoyment when the time comes to spend it!
And finally, see if you can find a way to make some extra money each month. Whether that means taking on some odd jobs on the side or selling items you no longer need, any money you can contribute to your holiday savings will be more you can use to make this holiday season more memorable than ever!
At Atlas Credit, we love the idea of holiday savings because it allows friends and families to come up with new and more exciting ways of enjoying the season together. One way to kickstart your holiday savings is of course through a quick and easy online personal loan from Atlas Credit! If you're in Longview or Houston and want a personal loan to make your holiday season special, contact us or apply online today!