The Christmas bells are ringing, what message is bringing ding dong! Ding dong! Merry Christmas to everyone.
The Xmas is a period a lot of us wait for to spend all the money we made during the course of the year, from going to vacation, gifts to families and friends, new clothing, nice foods and drinks to enjoy.
This season is a landmine of temptations to spend on things you don’t need.
It’s all too easy to blow your cash on stuff that loses its luster after exactly five minutes. One minute you’re clicking through Amazon humming along to “Jingle Bell Rock,” the next you’re staring down a cart of $400 on…Christmas Décor.
Before that happens, remember there’s one move you won’t regret: saving for the future. Which is why we’d argue that the end of the year is actually a really smart time to put some money away. Got a holiday bonus? A little extra cash from Grandma? By saving it rather than blowing it, you’re essentially “saving” yourself a lot. The sooner your money’s out of sight, the less tempted you’ll be to burn through it on junk. And you’ll feel great ending the year on a high-note, knowing that you saved as much as you could for your future self.
Save first before you start spending this season.
Of course, you probably don’t want your money just sitting there doing nothing. You want it to grow. But if you’re not quite ready to dive into investing, you can put your money to work in a high interest savings account first. A high-interest savings account is crucial to any smart financial plan – and the perfect place to store your emergency fund or something you’re saving for in the short term. There’s no account minimum, so you can start with that $5 that might’ve gone to chocolates.
Now, if you do want to invest — but still be very low-risk about it — you may very well want to consider opening an Individual Retirement Account (IRA) this month. IRAs have limits on how much you can put in each year, and there’s a strong case to be made for putting in the maximum amount so you can have as much as possible when you retire, and make the most of the tax benefits. What many people don’t realize is that you can have an IRA even if you already have an employer-provided retirement account. It’s just even more money for Future You.
Of course, saving doesn’t seem as exciting as getting a Calvin Klein perfume, or chocolate. But the peace of mind that you’re setting yourself up for a good future is actually a huge luxury, if you choose to view it that way. You want to end the year feeling proud of all you’ve accomplished and ready to conquer the year ahead and start the year 2019 on a good note, save and invest well this season while you enjoy the fun of the season.