3 Expert Tips on Holiday Spending
Article by Ashley Hutcheson
Photography by Lisa Linn Manley
Originally published in Franklin Lifestyle
Each year the holidays seem to expand our waistlines and thin our wallets bringing stress to even the most financially conservative among us. The good news is that it doesn’t have to be that way. After chatting with Southeast Financial Credit Union’s CEO, John Jacoway and President, Jeff Dahlstrom, they suggest having a budget and giving during the holiday season begins with the rest of the year.
Join a “Christmas Club” Account
The intent is to start saving and get in the habit; doing it continuously. The whole concept of a Christmas Club account is to earmark money for gift giving during the holidays, but the account options go far beyond December. That’s the great thing about a credit union; while you have one membership, you can set up multiple accounts under one umbrella customized by you for future spending goals like a new car or vacation. They can also help you focus on long term needs with a full spectrum of planning services focused on retirement, college and more.
Have a Plan
“Put it on paper and name your goals.” You can’t achieve a goal without having one. Southeast Financial Credit Union can be your financial foundation and offers products to help both now and in the future. Functioning just like a bank, credit unions are unique in the fact that they are accountable to their members and focus on helping them reach their financial milestones. With the most up-to-date
technology in online and mobile banking, you are just a few clicks away from opening an account or applying for a loan. Even more comforting is knowing Southeast Financial Credit Union is headquartered in Franklin and focuses on being part of the local community.
Live Within Your Means
The single best rule, John and Jeff agree, is to not spend more than you make. Seems simple but in the social media era where excess is prevalent, a great way to ensure you allocate your funds in ways that line up with your future goals is to spend your money on paper before you spend it in real life. There is no magic ratio of what percent of your money to spend where, but a good rule of thumb is to give 10%, save 10-15% and then “be intentional and purposeful” in your choices. Know some items (like homes and real estate) increase in value over time, yet some items (mostly the fun things like cars, boats and motorcycles) will decrease. Truly weighing wants (the newest phone) versus needs (paying down student debt) can allow for the really large goals to be met down the line.
SoutheastFinancial.org
