Why Early Fall is the Perfect Time to Start Your Holiday Savings Fund

While it might seem as out of place as a snowman on a beach, there's a jolly good reason to think about the holidays now. As you're sipping your iced tea and soaking up the last rays of summer, it's actually the perfect time to start stuffing your holiday piggy bank. Here’s how you can benefit from preparing for the festive season well before the first snowfall.

Higher Dividends

Setting money aside now in an account that frequently compounds your balance could make your savings grow faster. The longer you keep your money in the account, the more it benefits from compounding. By starting in early fall, you're maximizing this growth period before the holidays arrive. Search for an account that compounds the average daily balance so you can earn interest on both your initial deposit and any previously earned interest.

Less Financial Stress

Start saving for holiday expenses early to limit financial stress on your budget. Set up automatic transfers to a dedicated holiday savings account each payday to make the process seamless and consistent. Scheduling a $75 transfer from each paycheck to your holiday fund savings account could help you quickly accumulate a hefty balance. Auto-transfers promote steady growth of your holiday fund without requiring constant attention, making it easier to stick to your savings plan.

Financial Confidence

Building a small emergency fund alongside your holiday savings can help prevent unexpected expenses from spoiling your seasonal plans. Using this time to set aside money for both purposes, you'll be better prepared if an emergency occurs closer to the holidays. This approach allows you to manage both unforeseen circumstances and your planned holiday spending without having to choose between covering a surprise expense and buying gifts.

Lower Seasonal Debt

Preparing a holiday budget now could help prevent overspending and reduce the likelihood of going into debt. However, it must be realistic. Your budget should closely estimate holiday expenses and align with your income. Start by listing all potential holiday expenses, including gifts, decorations, and entertainment. Consider reviewing last year’s holiday spending to gain an accurate estimate.

Reduced Travel Expenses

Avoid the higher prices that come with last-minute bookings. Start setting aside money now for holiday travel. For example, if you usually spend $300 on transportation, aim to save $100 per month from September to November. By saving now, you'll have the funds ready when it's time to make reservations for December travel and possibly secure deals on flights and accommodations.

Get a head start on saving for winter festivities. Plan ahead to pocket the savings. Open a Holiday Club Savings Account today!