While the holidays should be a time of excitement, joy, and magic, the toll they take on your bank account sometimes feels anything but charming. But it doesn’t have to be that way. It’s possible to celebrate the holidays plus treat your loved ones (and yourself) to unique gifts and experiences without draining your savings.
Here are three reasons to start saving now, so you and your bank account are ready to celebrate this year’s season without a post-holiday debt hangover.
It’s probably no surprise that the holidays are expensive, but shoppers might notice just about everything costs more this year. According to the latest Bureau of Labor Statistics report, the cost of overall goods has increased 8.3% since last year. Food prices increased by 11.4% over last year, and all other items, not including sans food and energy, rose 6.3% over the past 12 months.
Most employers need to raise pay rates faster to match the rate of inflation, considering the cost of wages only increased from around 5% from 2021-2022. Currently, you could be allocating a lot of your savings to offset the increase in prices of your day-to-day necessities, leaving you with little to spend on the extras typically associated with the holidays.
If you’re still on the fence about starting an automated savings plan ahead of the holidays, here are reasons to start saving well before the season arrives.
From the mad rush at work before end-of-year deadlines to spending time with extended family, the holiday season may also include the stress of hosting family. The last thing you want is money to add to that stress.
Saving earlier in the year will give you a sense of control amidst holiday stress and prepare you for unexpected costs.
Develop a plan to put away as much money as possible from the paychecks you earn now throughout the holiday season. You can put this money into a savings account that you won’t touch in the short term but can access later on as you shop for holiday needs. Apply for the Payactiv Visa® Card* to set money aside automatically for the holidays and other goals in the free Payactiv app1.
You don’t have to save a lot, but try to stay consistent. Find an amount that works for you, and stick to it each week.
The more money you save now, the more you will have on hand to start shopping for gifts, decor, and other holiday-related items. This cash reserve enables you to shop strategically for early deals too.
Who says you can’t have your fruitcake and eat it too? Holiday costs don’t have to derail the savings progress you’ve made the entire year. Here’s how:
The holidays are special, but spending above your means will cause more stress down the road.
Payactiv’s Goal-Based Savings** makes setting money aside for the holidays easy and efficient.
Choose a goal you’d like to set money towards, and Payactiv will automatically transfer that amount every month. Start saving for the holidays today and make the season merry and bright with Payactiv Goal-Based Saving Tools.
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