In an ideal world, winter holidays bring joy, togetherness, and happy memories. In the real world, they bring a hefty dose of stress and financial strain too.
But this isn’t inevitable — by preparing for the holidays now (yes, now), you can lighten your financial load at the end of the year.
Not convinced that holiday saving or shopping is worth your while in July? Here are a few reasons to consider it.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
Helps removes holiday stress
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According to the American Psychological Association, 41% of U.S. adults said their stress level increases during the holidays. By saving for holiday shopping months in advance, you can remove a huge stressor that would otherwise cloud November to January.
Time to receive more help from compound interest
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You won’t make a mint on the interest in your savings account between now and December, but every little bit of compounding interest is money you don’t have to save. Put your money to work by using a high-interest savings account to put away funds for the holidays.
Helps establish a budget for more than gifts
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How much to spend on gift-giving is a personal question. If you’re not sure how much to plan for, aim for around $200-$1,000, depending on the size of your family and how big you like to celebrate the holidays.
And don’t just budget for the gifts. Include extra expenses like decorations, holiday clothing, special events, and meals in your budget, as these can add up. For example, a family spends an average of about $100 on Christmas dinner alone.
Resolve $10,000 or more of your debt
Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1
How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.
Helps you buy better gifts
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By saving up now, you may be able to afford more lavish gifts for your loved ones. Starting early means more time to save and/or earn the money you need to create the holiday bash of your dreams.
Starting now gives your credit card a break
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Starting January with a huge credit card bill from holiday spending is no way to ring in the new year. Keep yourself from going into debt by spreading out your savings and shopping over the next few months instead of throwing all the costs on a credit card and having to pay interest charges later.
It puts less pressure on one singular paycheck
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No matter which holidays you celebrate, slow and steady savings will help you have enough by the time they arrive. Set a savings goal for the total amount you need, then divide the amount by how many months you have left to save. Even if you fall short of your goal, you’ll be better off than if you’d waited until the last minute to start saving.
Gives you time to use mid-year windfalls
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If you plan ahead, you may only need to save the windfalls you get for your holiday spending. Use your mid-year bonuses or other large payments outside your normal budget to sock away funds for the end-of-year celebrations.
More time to find deals
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When shopping for gifts and decor, time is the best ally to have on your side. By saving and looking around early, you can take advantage of summer sales, back-to-school deals, and other discounts that may pop up well before Black Friday.
You may also find deep discounts at second-hand or thrift stores (especially on decor), but these are hard to find in a pinch because inventory always varies. By giving yourself plenty of time, you’ll get the best deals possible.
Earn more income if needed
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If your holiday spending tends to take you outside of your normal means, starting your savings and shopping early will help you know if you need to earn extra income to cover the festivities. You may be able to sell a few unwanted items or pick up a side hustle to make extra cash for the holidays.
Earn cash back on everyday purchases with this rare account
Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2
With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!
This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.
Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.
Bottom line
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During the heat of summer, the winter holidays are probably the last thing on your mind. But if you can start preparing for your end-of-year celebrations now, your future self will thank you.
By starting to save now, you have plenty of time to earn extra money and enjoy some help from compound interest. Hitting the stores early and finding deals can also help you save money.
The holidays come at predictable times each year. Treating holiday spending as an expense that comes at a regular interval (rather than an emergency you have to scramble to pay for) will make the season more joyous and stress-free.
Lucrative, Flat-Rate Cash Rewards
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Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 20.24%, 25.24%, or 29.99% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.