Tip #2 on Saving, Spending, and Savoring Money


Create your own Holiday Hoard.  Remember the Christmas Clubs from days gone by?  The friendly neighborhood bank or savings and loan would encourage their customers to set up special savings accounts for putting aside monthly amounts for holiday spending.

The Christmas Club name is antiquated for a population as diverse as ours, but the idea is as solid today as it was in the 50’s.  Here’s today’s version:

Each January, determine what is appropriate for the year’s gift-giving budget.  Divide that amount by twelve.  Establish an automatic monthly transfer of funds from your main deposit account into an interest bearing account that includes a debit card.  Use that debit card only for holiday gift giving.  That way you won’t spend over your initial budget.

Note:  The Christmas Club idea works well for any budget item that tends to get out of hand despite your good intentions.  It’s harder to see the bottom of the barrel when you re spending from your main account.

Here in November, I’ll bet you wish you had done that this year, don’t you?!
(Actually, now that I think about it, you still can.  If you get paid every two weeks you will have four paychecks to save.)


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