Finance Tip: Set Up a Holiday Account for Next Year

Stressed over the extra spending you’ve seen the past few weeks? It’s no secret the holidays are a strain on people’s bank accounts. Save yourself the stress and prepare in advance! Every month you should be saving a certain amount into a holiday savings account that will be used specifically for holiday gifts and expenses. For example, if you spend $800 every year on holiday gifts and $400 per year on holiday travel, you should save $100 per month into your holiday savings account starting in January.  That way, by this time next year, you’ll have enough money in the account to pay for your purchases rather than charging them on your credit card and carrying a balance for the first few months of the new year.

photo via Viva Terra

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This post was contributed by Brittney Castro, CFP® professional and creator of www.FinanciallyWiseWomen.com.   Brittney Castro is not affiliated with TheEveryGirl.com. Brittney A. Castro is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. California Insurance License #0F3389.