The 2×2 System is where you set aside two hours on the calendar two times a month to complete a predetermined financial task. This modest but consistent effort can help you sustain financial health and build wealth in bite-sized chunks. To view July’s blog covering credit and cash flow, click here. We hope you find this month’s information on planning for end-of-year holiday expenses helpful.
The holidays are just around the corner.
The peak of summer may not be the time of year you typically think of end-of-year merriment, but getting ahead of the game with some holiday planning can take a lot of angst out of the season of joy and giving. Try to set your spending limits now and set up savings accounts for gifts, activities, and travel. Calculate how much you’ll need for each category and divide by how many months you have left until the holidays. Then, have that amount deposited automatically into the respective savings or checking accounts.
Tip: Once November and December roll around, the stores are full of holiday decorations, music, and wonderful smells. Having a set spending amount in mind and making your choices before you’re exposed to this sensory overload can help you make decisions based on what’s best for you and your family rather than the emotions of the season. We make saving for the holidays effortless and automatic with our Holiday Club. Open one now and you’ll earn a cheerful 2.00% APY*. Set up automatic transfers from your paycheck or checking account to create a sack full of savings to use as you need during the holidays. Your funds are disbursed in early November, just in time for all your holiday shopping and traveling. Plus, there’s no minimum balance and no maintenance fees, so it’s easy to open and easy to save.
Session 2: Make a charitable giving plan.
Speaking of the end-of-year holiday expenses, you know there will be appeals for philanthropic giving as the year draws to a close. Giving to those in need is a beautiful thing. But contributing beyond your ability can add to the stress of what can already be a challenging time of the year. Consider making a plan for giving this year. You can start by listing the causes you give to every year and determining if you would like to give more or less than usual. You may want to focus your giving on a few causes that mean the most to you.
The holidays are a time of giving, but they are also a time when fraudsters try to take advantage of one’s good nature. Before you donate to any organization, review it on Charity Navigator, which provides free access to data, tools, and resources that help with your philanthropic decision-making.
Tip: Unexpected setbacks can happen to anyone. Earmarking some funds in your plan for unforeseen events can help you give in an impactful way without jeopardizing your financial wellness. Our Rainy Day Savings account is a smart way to take the sting out of unexpected expenses. Like our Holiday Club, you set up automatic deductions and your money earns a nice 3.04% APY** on balances up to $2,000. No Debit Card or checks are issued with this account to help ensure the money is available for emergencies and to help you avoid the urge to splurge. You get two free withdrawals per calendar year to help with life’s challenges.
Final thoughts.
Planning for end-of-year holiday expenses while you’re still using suntan lotion may seem unusual, but a little foresight can lead to financial joy. Setting money aside now can help you avoid a big post-holiday credit card bill and make all your holiday wishes come true. Creating an emergency fund helps you cope with life’s financial storms. Getting started is easy, you can open a Holiday Club or Rain Day Savings account on our website, in Tulee, or by calling 800.877.2345. Let us be the first to wish you and those you care about happy holidays.
This article was developed in partnership with our friends at Balance.
*APY = Annual Percentage Yield. APY is the annualized rate based on a compounding period of one year. When the deposited money earns dividends and the accumulated dividends starts earning dividends as well, we are talking about compounding. Fees could reduce the earnings on an account. All yields except Certificate yields are subject to change retroactively to the beginning of the month.
**APY = Annual Percentage Yield. Rates are subject to change at any time. Limit one Rainy Day Account per qualified membership. Rainy Day Savings is an interest earning savings account eligible for 3.04% APY interest on balances up to $2,000 and the standard Membership Savings rate on balances over $2,000 when funded via recurring ACH deposit or other qualifying external funds. Dividends are calculated by applying a periodic rate to the Average Daily Balance in the account for the Dividend period. Interest earned will be credited to the account at the end of the statement period. This account is limited to two withdrawals per calendar year, each withdrawal in excess of this amount will incur a $20 excessive withdrawal fee that must be paid at the time of the withdrawal. This account does not qualify for withdrawal access via debit or check and does not support transactions originating via VRU, online banking, mobile banking, or ATMs. Withdrawals can be made in person at a Credit Union branch or by calling us at 800.877.2345. This account does not qualify for overdraft protection. Account holder must be a member with a regular share account who is in good standing. Current interest rates and the annual percentage yield may be found at the Credit Union’s website, may be verified at a Credit Union Branch or by calling 800.877.2345. Interest rates earned and qualifying dollar amounts for interest earned are subject to change at any time. APYs and eligibility criteria are subject to change at any time. Fees may reduce earnings.
