How to Save $500 by Christmas on a Tight Budget
Saving for the holidays can be a soooooo stressful, especially if you are on a tight budget. However, with a little bit of planning and some creative thinking, you can easily save $500 by Christmas! In this blog post, we will outline a plan that will help you beat holiday debt and have plenty of money to celebrate the season!
First, let's start with a few basics. If you are currently not saving any money each month, now is the time to start! Even if you can only put away $50 per month, that will add up to $600 by Christmas. If you are able to save more than that, even better! Just be sure to put the money into a savings account so you are not tempted to spend it.
How to save $500 by Christmas on a tight budget
STEP ONE: FIGURE OUT HOW MUCH MONEY YOU NEED FOR CHRISTMAS.
This can vary differently between families based on your budget, your priorities, and family size.
One thing many families do is implement the ONE model
One thing I want
One thing I need
One thing I’d love
STEP TWO: HOW MUCH TIME DO YOU HAVE TO SAVE MONEY?
One of the easiest ways to start saving is to take a look at how much time you have until the holidays and then count the weeks back until today.
Once you know how many weeks you have to save, divide the amount of money you need by the number of weeks.
Let’s do the math: Let’s say you have tons of family to shop for, or perhaps you want to take a road trip for the holidays– you need $1,000.
If you have 15 weeks until you need the money, you need to save about $67/week.
If you had started back in January, you would have only needed to save about $20/ week.
If you only need to save $500 in 15 weeks, that’s about $34/week.
STEP THREE: DECIDE WHERE SHOULD YOU KEEP YOUR SAVINGS?
You have a few options:
FIRST: You can keep it in a high yield savings account.
I personally have the American Express Rewards Checking Account. It offers a competitive Annual Percentage Yield (APY) on checking balances, Membership Rewards® points on eligible Debit Card purchases, and the ability to manage your account online or in the American Express® App.
Earn a 0.50% APY† to build your balance ( SAY WHAT?)
Earn Membership Rewards® points on Debit Card purchases( No brainer)
No monthly account fees† and no minimum balance required (YASS)
SECOND: You can keep cash on hand. Everyone knows cash is king!
THIRD: You can pre-purchase gift cards.
Just be sure to check about expiration dates and if there are any non-use fees.
If you want to jump start your savings today, be sure to grab these Holidays Savings Plan and Holidays Shopping Checklist printables!
Do you have any other suggestions?
Let us know in the comments below!
P.S. Need help with additional ideas? email us at hi@mamasdinero.com
Financial Disclaimer:
This website (the “Blog”) is created and authored by Alicia Sanchez (the “Content Creators”) and is published and provided for informational and entertainment purposes only. The information in the Blog constitutes the Content Creator’s own opinions (and any guest bloggers posting from time to time). The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. The views reflected in the commentary are subject to change at any time without notice. Read More