Use a specialty bank account to help fund your dreams
We’ve all overspent on a vacation or on the holidays because we didn’t have enough saved up or failed to accurately predict what we’d spend. Fortunately, there’s an easy fix to a post-vacation or post-holiday lack of funds. Opening a specialty bank account, such as a holiday or vacation club account, can mean having the money you need without having to worry about bills later.
What they are: Many banks offer specialized accounts to help you meet your savings goals. So whether you’re saving for a vacation, the holidays, a large purchase—or all three—you’ll have a safe place to stash your earmarked funds.
Figure out what to save: Come up with an amount you think will fund your goal. If it’s a trip or a car, you can price it online. If it’s a holiday spending account, use your previous year’s tab to come up with a number. Use your projected timeline for making your purchases, shopping, or going on your trip to decide how much you need to save each month. Strive to budget a bit over your estimated amount, as we frequently spend more than we plan.
Boost your account balance with extra cash: Want to reach your goal faster? Vow to add any extra cash you make or receive to the account—but keep making your monthly “payments” even when you reach your goal. That way you’re sure to have extra money for when you will need it later.
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