It may not be Christmas in July, but you can start saving for it now!
Clients of Capital Budget Strategies, LLC, Austin Best Financial Coach, are taught that certain expenses will occur, therefore why not save for them? For instance, suppose you spent $600 during the 2023 holiday season and expect to spend the same amount this year. If you had opened an account in January and deposited just $50 month, you would have $600 when you start shopping for gifts. The best part, no credit card debt.
Other expenses you just know are going to occur within the next year may include: car maintenance, property taxes, school supplies for the kids, a vacation, a wedding or a medical bill. One client purchased a new car and the very next day, she opened a “New Car” account for her “next” car, which will be purchased in 5 – 7 years. When she buys that car, she may not have the total price covered, but she will have a great downpayment and drastically lower monthly payments.
Where to keep these future expense accounts? Many online banks, such as Ally Bank and Capital One, allow you to open as many accounts as you want. Plus, you can “name” each account. When you open our Austin Money Coach’s Ally Bank webpage, you will see 17 different accounts, each named with a different expense: Kitchen Renovation, Medical Expenses, New Car, Italian Vacation, Property Taxes, etc. Best part, Ally Bank pays 4.2% interest on each savings account!
Our kitchen is nice, but we knew about 5 years ago we would someday need an upgrade. Therefore, if we begin work this year, we would have made 60 deposits into our online “Kitchen Renovation” account. By making monthly deposits of $350, we would now have $21,000. Most importantly, we will not need our credit cards! By having an online account and making automatic monthly transfers, that is money we are saving and not spending.
For only $149, Capital Budget Strategies, LLC, will meet with you one-on-one via Zoom and together help you organize your personal finances. We will determine your New Worth, review your spending and saving habits, set up an Emergency and Survival Fund, review retirement savings and create a personalized monthly Budget. Additionally, we will create a Snowball Debt Repayment Plan, if needed.
Our sessions are intense, so be ready! But give us approximately 4 hours and we will change the way you save and spend money forever! Happy Holidays!
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