Its January—time for you to slow down and take a breather! Since the holidays are over, your wallet may feel a little lighter. Cornerstone Bank is ready to help by providing three ways you can recover from holiday spending and better plan for the year ahead.
1) Organize Your Payments
Your first step is simple: get organized. Did you make holiday purchases with credit? Before doing anything else, determine how much you spent over the holidays using credit cards. Make a list of these debts, payment due dates, and the timeframe in which you want to make the payments. Prioritize paying off those with the highest interest rates first. Visit the credit card payoff calculator for guidance.
Look at these amounts alongside your other necessary payments (vehicle, public transport, gas, groceries, and other bills) to get a full understanding of your finances and create a plan that incorporates holiday spending. Looking ahead is the key to success. And remember, while the holidays may be the season of giving, never make purchases that you simply can’t afford!
2) Shop Early and Start Saving for 2023
The primary reason many people struggle with finances during the holidays is because of the lump-sum payments that fall over the span of a month or two. By spreading your holiday shopping throughout the year, you can offset the cost of holiday gifts and keep your credit card bills to a minimum. Create a holiday budget to keep spending in check.
Alternatively, you can set aside money each month that is specifically dedicated to holiday shopping. Using our Holiday Savings Plan, if you put away just $40 a month between January and October, you will have $400 banked for the holidays. And come December, you can tap into this stash and rely less on credit.
3) Determine the Best Time For Big-Ticket Purchases
If you plan to purchase big-ticket items for anyone, research the best time of the year to make the purchase. For example, many appliance and furniture stores offer big savings on holiday weekends like
Presidents Day, Memorial Day, Labor Day, or Black Friday. Sports equipment is generally cheaper when that sport is out of season, so you’ll likely find the best deals on skiing equipment in March and April as the season ends. If you will travel for the 2023 holidays, you may find the cheapest flights in August or September. Timing is everything—no matter the purchase.
Let Us Help with the Cornerstone Holiday Savings Plan
We’re always looking to provide you with the best savings account rates, and that’s especially true during the holidays. Similar to our Statement Savings Account, our Holiday Savings Plan earns interest but is specifically designed for you to save for the holidays. At the end of the term, we’ll mail you a check for the balance plus any interest earned on the account! Want to learn more? Contact us today to start saving for the 2023 holiday season.