Avoid the holiday spending blues

Every year it is the same, January rolls around and the credit card bills hang over you like a rainy, gray day in, well, January. Why oh why did I spend so much this year? Now I can’t pay my credit card bills in full and will be stuck with 28% or more interest rates…woe is me. But there is a better way!

This year, right after you pay off your credit card bills from last year, start saving a certain amount each month for holiday gifts. For example, let’s say you think you will want to spend about $1,200 next year on holiday gifts for family and friends. So that is $100 per month. Every month, “spend” $100 per month by putting that amount into your savings account, then when December rolls around you will have $1,200 set aside in savings. I would bet that seeing the money in your savings account will help you stay within your spending target!

Try it out this year! By the way, every spending category should be treated like this. I call it “savings bucket spending”. This method of budget will transform your personal finances, I promise! If you need help getting this set up for you, Contact Us.

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