With two months left before New Year’s eve, it’s just the right time to start thinking about holiday shopping. Since the prices have been rising on everything, how can an average American save money on presents and groceries?
84% Of Americans Choose A Sinking Fund
Here’s the answer you’ve been looking for – a sinking fund. This is one of the main strategies to rescue any holiday shopping list from enormous prices. And boy, are the prices on groceries and presents high this year! If you’ve already stacked all the numbers, it’s easy to see that U.S. residents won’t be able to afford as much in 2022. In fact, two out of five individuals said that inflation changed the way they’ve been preparing for holidays, according to Bankrate’s new survey. Moreover, the food-at-home index had increased by 13.5% over the past year, said the U.S. Bureau of Labor Statistics’ Consumer Price Index Summary. That index usually states how much Americans pay for grocery items. Naturally, holiday dinners will also become less affordable.
When it comes to gifts, it might become troublesome, too. This year, apparel prices have gone up 5.2%. It means the usual fluffy holiday socks and warm pajamas won’t be there for a reasonable cost. That said, most Bankrate survey responders (84%) chose a sinking fund as their saving strategy. 40% of them will try to buy fewer items, while 21% want to look into cheaper brands to purchase from. Of course, looking for sales, discounts, and coupons is a great option, too, per the choice of 41% of holiday shoppers.
Do It Yourself
While 84% of Bankrate survey responders decide to save up money for their annual holiday shopping, it automatically means they’ve chosen something called a sinking fund. With just a few months away from New Year’s eve, even you can easily round up your purchases in preparation for holiday gift shopping. So, what is a sinking fund and how does one establish it? It’s an amount of money set aside for a purpose, as simple as that. Be it a trip once a year, a purchase of a car, or shopping for Thanksgiving day and Christmas presents!
Although saving a big amount of money can sound complicated, a sinking fund will save any holiday shopper from invading their other savings accounts when they’re out of holiday money. Besides, there are tips and tricks worth mentioning for easier time saving. First of all, set a realistic goal for every passing week. It doesn’t have to be hundreds of dollars every time – put your finger on an attainable sum that doesn’t stress you out. Even if you slip 30$ a week, by the end of the first month the virtual piggy bank will already carry $120! That said, even $100 can be of incredible help during the holiday season. Don’t forget to choose the right high-yield savings account for the sinking fund, either. High interest will only aid your pocket when compared to the usual savings account.
Looking to save even more on holiday shopping? Plan in advance to see how much money is spent every year. Then, look for shopping rewards programs to get any cashback and bonuses from every shopping trip.