Credits: Social Media
5 money-saving tips for Christmas – start by overcoming major social taboo
This week marked the beginning of the countdown to Christmas. 3 months to go! For some, money isnt an issue, but for many Americans, the festive season presents a budgeting challenge.
We asked our panel of money-saving experts for their best tips on how to scrimp and save during the lead-up to Christmas. From loud budgeting to using a money-saving app, these are what they came back with.
1. Start by overcoming major social taboo – talk openly about money with your friends
Not talking about money is a privilege of the wealthy, Forbes writer Laura Shin once quoted her friend as saying, in an article about how we should all try to normalize talking about money. If money is critical to your survival, and youre not just being nosy, you should feel free to ask.
Much was made of loud budgeting earlier this year. Its a phrase attached to a TikTok-popular craze, but as with many, or at least some, of these things, theres a kernel of wisdom in it.
Personal finance expert Ben McLaughlin celebrates loud budgeting, as it involves being transparent and vocal with your friends and loved ones about your financial goals.
In so doing, it normalizes activities that prioritize quality time over spending, and gets people talking openly about their finances.
From a Christmas saving angle, opening up your plans to your confidantes could add a healthy amount of social pressure to follow through with your saving goals. Try to hold your friends accountable to their own goals, and ask them to hold you to yours. Be on each other’s team.
Ben McLaughlin is a consumer advice and personal finance commentator and the president of online savings platform Raisin.
4 more budgeting tips for a hassle, debt-free Christmas
Ben encourages savers to look for areas where they can save without feeling a negative impact on their day-to-day. In other words, you neednt stop drinking lattes or buying avocado toast.
2. Consider switching banks.
On average, Americans are charged $133 on ATM fees and $300 on bank account fees like maintenance charges, withdrawal and transfer fees, and falling below minimum account thresholds, he says. If you can find a bank thats better suited to your financial situation, you could find yourself saving hundreds over a year.
3. Move your savings.
Related to the simple act of switching current accounts is the option of moving your savings from low-yield savings accounts to high-yield savings accounts. The average savings account currently pays less than 1% in interest, Ben says, while market-leading rates are as high as 5.00%.
4. Save first.
Money mindfulness author David Delisles best tip for saving is simply to save first.
For most of us, saving and budgeting is against our human nature and if we have money, he says, we will spend it.”�Therefore, we should override our impulses by automating saving. By saving first, before the money even has a chance to enter a spending account, you will ensure that youre prioritizing saving.
Governments do this by deducting your taxes before you receive your paycheck. Follow their lead and automate your savings.
But how? You could set up a direct debit from one current account into another, or from your main bank account into a savings space labeled in such a way as to remind you not to dip into it unless in emergencies. Or…
5. Use an app.
There are apps that will automatically round up your purchases and invest the difference, David says. This is another simple way to start saving little bits of money and not even notice the savings.
Examples include Chime, Qapital, Oportun, Rocket Money, and Allo.
David Delisle is a financial author, entrepreneur, real estate investor, and the founder of The Awesome Stuff“.
