In and Out – how to save for the new year!

I can still hear the countdown…5..4…3…2…1..Happy New Year! A few weeks into the new year though and persons are singing a different song. It’s been more along the lines of watching your money disappear and wishing that you knew where it went in such a short time.

Priorities

If during the Christmas holidays you happened to be on Constant Spring Road or Half Way Tree area you would have been astounded at the number of people shopping.

The stores were so congested that finding parking spots became a scavenger hunt which often resulted in frustration as drivers lined up for almost an hour with no signs of moving.

The most popular stores seemed to be the ones that sold clothes, shoes, toys, furniture or  appliances. So it makes me wonder why at the end of the year  do we shop when it’s clear we don’t really need to buy some of these purchases.

It is important to remember that what we purchase today can hurt us tomorrow! A lot of consumer purchase can be emotional and be based on flashy signs which advertise one day sales or huge discounts instead of on actual need.

Consumers need to avoid simply choosing items because they are on sale and focus on ensuring their priorities are taken care of first before any other consideration is made.

If the item is really necessary there are other things to consider as well before you make a purchase.

Saving Options

It is imperative that consumers take stock of their needs but they also need to evaluate if their goals are long or short term.  If they have short term goals such as purchasing an appliance or redecorating a room this can be achieved with minimal effort. These kind of goals can be accomplished by putting aside a small amount for a few months.

Short term savings can be placed in a separate savings account or credit union partner plan. These kind of savings arrangements will allow the consumer to easily access their funds.

Long term goals however such as buying a house, car or making home improvements can be harder to accomplish if you don’t save for a longer time. It’s even better if you are not able to spend the funds you have accumulated until a specified time.

These type of goals are very important and it is essential that you don’t over spend at the end of the year. Fixed deposits or long term savings plan at credit unions are an excellent at keeping funds tucked away as you save to accomplish your goals.

Whichever method you choose ensure that you save so that you have some money to spend in the new year!

How do you save?  Drop me a line!

Teri Ann Renee Paisley

Gleaner Online Writer

Tags: goals, save