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Christmas Shopping Can Leave Us Penniless. Here’s How to Prevent This from Happening Again

Christmas is the season to be jolly… but the same can’t be said of our wallets, which take the brunt of all our lavish expenses. For some reason, we can’t help ourselves during the holidays because we seem to be compelled to buy stuff for our loved ones. However, we would only feel the adverse effects of constant shopping once we are financially drained – by then, we would feel bad for our wrong money moves.

Christmas is the season to give

For starters, there’s not a bad time to save and there’s no excuse not to set aside a portion of your money. But during the Christmas season, even the most rigid savers can get sidetracked, no thanks to the hordes of discounts in malls and the tempting throngs of shoppers flocking bazaars and stores.

After all the shopping spree, you would realize that you’re not in the ideal financial situation. So, you promise yourself that you’re going to be ready for next year’s holidays, here’s what you should do:

High-Yield Account

In order to do that, your mindset should be set in saving. If you don’t have one, the first step is to open up an account where you can save money. This could help you be on track to your goal – either small or big, what matters is that you are not derailed from your plans. If you are thinking about the next holiday, you should decide how much of your monthly income goes directly to that account.

A high yield account has a higher interest rate than the regular savings account

More importantly, you can opt for a high-yield account that’s like a normal savings account but only differs in the interest. The former, as the name suggests, has higher rates reaching up to 20 percent, whereas the latter only offers 2 percent.

While it may not be true for all, some people find it hard to save money in their savings account. To make it bearable, you can automate the transfers monthly so that you are constantly saving without the pain. Plus, you can’t make forgetfulness an excuse because the automatic deposit will take care of it. Note that you don’t have to save half of your earnings, but only your extra – in time for December, this will balloon.

Increase in Deposit

While the amount may not vary, it is also crucial that you subject yourself to a challenge. If you have been setting aside the same amount in your savings, the next best thing is to try to increase that as time goes by.

Maybe there’s an upcoming bonus or you’re aware of months where you’ll spend lesser than the others, then use those opportunities to save bigger sums. Even if you increase it by little, you will feel that the extra effort will pay off in the next holiday.

Budgeting

Setting a limit could help you stick to your budget

We may be a year away but it pays to set a budget for the next holiday season as early as now. Remember, we are only down to a few days till the new year comes, which basically means you have an entire year to make things right by saving. Whatever budgeting scheme you choose, you should set a limit to spend during the season.

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