We have all great days in our lives, but these events sometimes all seem to come at once and come at an enormous price. Whether it’s for your wedding, birthday, or an once-in-a-lifetime trip with your friends, you’ll need to save up money for these special occasions. If it’s holidays, birthdays, or anniversaries, we all look forward to them. It doesn’t take much to get started with budgeting; all you need is a little assistance and persistence.
However, one aspect of such special occasions that many of us do not consider is the financial cost. Instead, you can save money and plan for the big day. Although you could take out a payday loan or a cash advance to cover the bills, these types of loans and advances are better saved for emergencies or some special occasions. While you can’t always predict when an occurrence will occur, such as your children unexpectedly announcing their engagement, you can prepare for any special occasion on the horizon, whether anticipated or not.
Small adjustments in one’s spending habits might soon add up.
Changing a few daily routines, reducing monthly expenses, and utilizing programs that automate savings can all have a significant impact. So, how can you put money aside for such special occasions? Here are some of our recommendations:
1. Investment of the money for Future Use
You may want to invest your money in different stocks or shares if you plan a big life event for long periods such as a fiftieth birthday or a wedding. You don’t have to let your money sit around collecting dust. If you don’t have a savings target in mind, one of two things could happen. To begin with, you will easily overspend on the actual event.
You will restrict your spending and avoid having to cover extra unexpected expenses as the big day approaches if you have a number in mind. Second, having a savings target will motivate you to stick to a regular savings routine, increasing your chances of success.
Going in without a strategy can lead to you putting money away here and there, leaves you with insufficient savings. Putting your money to work is an excellent way to accelerate your savings. Here are a few ways to make your money raise money, depending on how long you have before you need the funds.
Who says your money has to sit in a bank account collecting dust? Making your money work for you is a smart way to help you meet your savings target faster. Depending on how much time you have before you need to use the funds, there are a few options.
2. Setting up a Budget
Special occasions like big parties and holidays aren’t cheap, so knowing how to budget will come in handy. First and foremost, you must determine how much money you want to spend on these special occasions and then stick to it. First and foremost, you must determine your deadline and the total amount of money required by that date.
To keep your aim clear and concentrated, be precise. Many savings worksheets, such as short-term savings target calculator, will help you see the process broken down into manageable weekly or monthly contributions. It’s always a good idea to consider the basics. Consider the event’s location or accommodations, rather than luxuries such as a horse and cart, pink Cadillac, or karaoke machine. The more money you save on optional extras, the more you can spend on other aspects of your case. You can find hundreds of free budget planning worksheets online, to assist you in getting started.
Give yourself plenty of time because this could take many hours. Make sure you have three months’ worth of bank statements to use as a reference for your spending habits before you begin. When making a budget, it’s important to keep two things in mind. First and foremost, be completely frank with yourself. There are no judges present; the aim is to obtain an accurate image of your spending habits. Second, you might discover that you’re wasting money. That leads us to the next step: controlling your spending.
3. Saving on Banking, Credit, and Debt
- Each month, pay off all of your credit card debt. If you aren’t incurring debt or paying interest, the miles and cash-back are only worthwhile. Read more information on credit and debt here.
- Set a first target of paying off just $1,000 of your credit card debt. If you pay penalty rates of 20 to 30 percent, your $1,000 debt reduction will likely result in annual interest savings of $150 to $200, and even more if you do.
- Make sure to only use the ATMs at your bank or credit union. Using an ATM belonging to a different financial institution once a week might not seem like a huge concern, but if each withdrawal costs you $3, it adds up to more than $150 annually.
- Free credit report checks are available once a year. Utilize the three credit reporting bureaus’ free annual credit reports to check for errors or chances to improve your score. Lenders, landlords, and other parties evaluate credit ratings to determine what they will rent to you and at what price. For instance, a low credit score can result in a more than $5,000 increase in the cost of a $20,000, 60-month auto loan.
- Set up auto-pay for your bills. This guarantees that they are paid promptly and in full to prevent late fees. Additionally, if you sign up for auto-pay, certain loan providers will reduce your interest rate by a little amount.
4. Take a look at the current financial situation
Examine your current expenses and bank accounts carefully. To avoid putting undue strain on your finances, you should know exactly what you have and how much money you can afford to save each month from your salary. Now comes the difficult part, of taking a look at your daily spending patterns. It’s okay if you’re afraid to look. Just one out of every three Americans keeps track of their expenses, let alone pays attention to what they spend it on.
We will decide whether we are overspending and where we are overspending by analyzing our finances. Work out all of your fixed costs and expenditures, and then see if there are any ways where you can save money. Consider switching your power, gas, water, or broadband providers to save money on your bills. After that, you’ll be able to calculate how much you can set aside per month.
5. Expenses for Entertainment
Use the library to your advantage. Libraries are treasure troves of unpaid entertainment. They provide many forms of entertainment, such as classes, e-books, and audiobooks. You can even borrow tools and sewing machines from some libraries! Search online for low-cost or free local entertainment. To find some downtime, look at local events on Facebook or Eventbrite. Events and activities that you probably aren’t aware are happening are frequently listed.
Become a festival volunteer. Volunteers for cultural festivals and events frequently receive free admission. To learn more about volunteer possibilities and advantages, get in touch with the event organizers of your choice.
6. Money multiplies itself
You might put every last dollar in a piggy bank or your sock drawer, but that will not result in any additional funds. Visit the banks to learn about the various savings opportunities available to you and to determine the best deal for you and your money. Put your money in cash returning savings account. A great option is an online savings account that pays for the balance you retain up to 5 times the national average interest.
Many of these accounts have no minimum balance or fees, which makes them perfect for short-term savings. It is easy to move money digitally from your check to your saves without even leaving the house. When it comes to choosing a savings account, there are a few things to remember. Is it possible for you to withdraw your funds right away? How quickly can the value of your money rise? What kind of benefits are you going to get? Don’t be afraid to shop around for a savings account where you can raise money for nothing.
7. Keep the extra cash in a savings account
There are times of the year when we could get a little extra money. It can be more than a little, for example, the total annual tax return for American households is just over 3000 dollars. There’s also the possibility of receiving holiday bonuses or cash gifts from friends and family. Rather than anything else, we use this money to cover costs or catch up on bills. If you’re putting money aside for a special event, you may want to think twice about spending it elsewhere. Instead, consider setting aside at least some of it to fulfill your savings goal; it will help reduce your monthly savings needs, giving your wallet a break.
Even the best-laid plans can go awry, despite your attempts to save for the big days. Unexpected expenses occur often in life, leaving us with few choices other than to use our savings to pay our bills. Thousands of people have used Fundslord to help them get through emergency cash conditions like these. The occasions are something everybody plans and waits for a long time and wants to spend it with joy and happiness and that is the reason people start saving for money from a long time.
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