December 26, 2024 • 19 mins
In the final episode of the Accelerate Your Legacy podcast, Laura Sexton, a financial coach and money mindset specialist, discusses the importance of planning and saving for holiday expenses to avoid debt. She introduces the concept of a Christmas Club account, encouraging listeners to start saving early, thereby reducing financial stress and fostering intentional money habits. Laura also announces the podcast's rebranding to Money and Career Mastery from Overwhelm to Ownership, maintaining its focus on financial freedom and legacy building. Practical tips for setting up a Christmas Club account, reflecting on holiday spending, and prioritizing future savings are shared to ensure listeners have a financially stress-free Christmas.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Laura (00:02):
Hello and welcome to the Accelerate Your Legacy podcast.
I'm Laura Sexton, your trustedfinancial coach and money
mindset specialist.
Join me as we explore the worldof money and money mindset while
also paving the way for alasting legacy that extends far
beyond money.
Together we'll eliminate stress,amplify freedom, and ensure you
(00:26):
stop paying for your past so youcan start saving for your
future.
If you're seeking peace in yourfinances, more margin in your
budget, and a legacy thatinspires generations to come,
you're in the right place.
Hello, Accelerators, MerryChristmas, and welcome to the
(00:49):
last episode of this season onthe Accelerate Your Legacy
podcast.
My friends, our time as an AYLcommunity has come to an end,
and we are moving on to biggerand better things.
I want you to come along withme.
Stay right here.
Nothing's going to change.
If you were subscribed to thispodcast, nothing is changing for
(01:11):
you except the picture.
That you see coming up everyThursday.
My friends, we are changing thename of this podcast to Money
and Career Mastery fromOverwhelm to Ownership.
We are going to be talking aboutall things optimizing income,
paying off debt.
We're still going to be talkingabout leaving a legacy and
(01:31):
building wealth.
This is going to be a time forus to come together.
and learn how to do things justa little bit better.
If you're already subscribed tothis channel, all you have to do
is stay right here for nextweek.
And if you're not alreadysubscribed, please go ahead and
click the subscribe button.
I would love to show up in yourpodcasting platform every
(01:52):
Thursday.
So, my friends, if you werelistening to this in real time,
yesterday was Christmas.
Merry Christmas to you, and Ihope that you enjoyed your
holiday.
I hope that you are stillgetting to spend time with your
friends and family and lovedones, because that's really
important.
And you may be asking, why inthe world, the day after
Christmas, I'm talking about aChristmas club account?
(02:14):
Well, I'm doing that because Ithink it's really important.
Americans spent more onChristmas this year than they
ever have before.
Which is crazy, because we haveall of this inflation, and I
would have thought thatChristmas spending would have
gone down, but I would have beenvery wrong.
In 2023, according to theNational Retail Federation,
(02:38):
Americans spend an average of 1,474 on Christmas related
expenses.
Now some of that's presents,some of that's experiences, some
of that's food, but the crazything is that 36 percent of
people went into debt for theirholiday spending.
According to LendingTree.
And it just, it makes me so sadbecause we don't need to be
(03:03):
going into debt and people thatput this on their credit card,
some of them are still paying itoff in April and May.
And what's really sad is thereare people this year.
At Christmas time, they're stillpaying for last year's Christmas
time.
And I don't want that to be you.
So I wanted to come on here andtalk about setting up a
Christmas club account and doingit today.
(03:25):
What is a Christmas Clubaccount?
Well, these were popularizedduring the Great Depression, and
they are now offered at manycredit unions and Some banks,
mostly on a local, smaller banklevel.
This is a chance for you to putmoney into an account all year
(03:46):
long, and the funds aretypically locked up until a set
date.
Usually, the end of October,beginning of November, to ensure
that money is spent only onholiday spending.
Now, the reason I wanted to goahead and talk about setting
this up, yes, because I want youto start saving money at the
very beginning of the year fornext year's Christmas.
(04:08):
It's crazy because people thatsave money for Christmas and set
it aside early, and they saveyear round for Christmas
spending, they spend on average25 percent less because they're
more intentional and lessimpulsive about their purchases.
And that is what we aim to behere in this legacy building
(04:31):
community.
You have been in the midst ofholiday craziness.
Things can get overwhelming.
There are many parties to go to.
There are presents to purchase.
There are activities.
People want to go see Santa.
There's so many things that youcould be doing.
Maybe you're spending time withyour family.
Maybe you're having a giantChristmas meal.
(04:53):
I don't know exactly what it isthat you are doing this year.
But I do know That for most ofus, Christmas can be a little
bit crazy.
I know this year we are tryingvery hard to make Christmas an
intentional, calm, relaxingtime.
And of course, having just goneto my daughter's Christmas
musical, there were a lot ofkids that were sick.
(05:13):
So while we're here, I wouldlike for you, before you do
anything else, to sit down andreflect on what it is that you
liked about this Christmasseason, and what it is you
didn't like, and you don't wantto do next year, and by doing
this, you are going to be ableto make it.
those priority things importantfor next year.
(05:35):
What is it about this Christmasthat you really enjoyed?
Was there something you did thatyou think that's a holiday
tradition I would absolutelylove to continue forward and do
every year for the rest of myyoung children's life?
Is there something that you sawthat you can't imagine doing
(05:55):
Christmas without?
These are the important thingsthat we want to make sure next
year we put high up on ourpriority list so that they get
done.
And if we have to fund them, ifit's something that's going to
cost some money, maybe it'sgoing to see Santa and getting
pictures, maybe you want to gosee some snow, and so you want
to go sledding, Write it down soyou don't forget next year.
(06:17):
You're still in the midst ofChristmas crazy.
So write down what you enjoyed.
At the same time, I want you towrite down the things that you
did not like.
Was there something that you gotdragged to that you said, Next
year, I don't want to do it.
Because I don't want it to comearound next year and you'd be
like, did I like, I mean, I seemto remember, I'm sure it was
okay.
(06:38):
And then you have to go to thisthing again.
You're like, that was terrible.
I don't want to do that.
Go ahead and write it down whileyou're still feeling the feeling
and set that boundary foryourself today.
Was there something that didn'thappen this Christmas that you
wish could have?
Maybe you ran out of funds andyou didn't have the money for
it.
Maybe you just weren't able toget your schedules aligned with
(07:00):
the people that matter most toyou.
Whatever it was that was missingthis Christmas.
Write it down now, so next year,you can make it a priority and
make sure that it happens.
The whole point of this, myfriends, is for you to pay
attention now so you canprioritize for later.
Yes, I am having you do somejournaling exercises, but trust
(07:22):
me, come this time next year,you are going to appreciate the
fact that you wrote these thingsdown and you're paying attention
to them now.
So, going back, that was, whatdid you like, what did you
dislike, what did you miss thisyear?
And what are we going toprioritize for next year?
Okay, so journaling exercisedone, and I'm so excited that
(07:45):
you're still here with me.
Let's talk about the benefits ofa Christmas Club account.
One of the main benefits is thisis going to encourage
intentional savings.
This is a muscle that I want youto be constantly strengthening.
Because if you're anything likeme, savings is fun and you like
that it's there, but the actualdoing it and the actual savings
(08:05):
is kind of hard.
Because I could be spending thaton other things that are
happening right here in front ofme, and if that is something
that you struggle with, I have apodcast on opportunity cost and
we can talk about giving up whatwe want most for what we want
right now and how important thatis, but I want you to be
Intentionally saving all yearlong, set up the Christmas Club
(08:26):
account, and you're going tomake automatic deposits into
that account.
If your bank offers a ChristmasClub account, they will set that
up for you.
These small consistentcontributions will add up over
time.
For example, if you save just 25a week, you are going to have 1,
300 for next Christmas.
(08:47):
25 a week does not sound like alot of money, but it gives you a
big result.
So if you're sitting there andyou're going, these are the
things that I definitely want tohave happen next year for
Christmas, and this is thegiving I want to do, and these
are the presents I want to buy,or at least the people that I
want to buy things for.
Is 1, 300 enough?
If it is, that's 25 a week.
(09:07):
Let's get it.
Let's go.
By having this Christmas clubaccount, you are going to reduce
your financial stress.
Is there any better reason to dosomething than to have less
stress in your life?
You're going to avoid the needto rely on a credit card or a
loan during the holidays, whichI hate.
It's my least favorite thingabout walking into my bank.
They're like, get a holidayloan.
(09:28):
I'm like, no, why would I wantto add stress to my life?
Stop it.
But it also ensures that youhave cash on hand, which can
prevent your overspending.
having a limit that you haveset, because you've put that
money aside.
Specifically, you are givingyourself permission to spend
this money.
And you are also giving yourselfpermission to not overspend.
(09:49):
Having a Christmas Club accountalso will help you learn good
money habits.
This is great for families tomodel intentionality and
budgeting.
Get your kids involved.
Let them know, hey, we set moneyaside all year long and this is
what our Christmas budget is.
I know for my kids, we take themto Five Below, which if you
don't have one of these, you canprobably guess by the name.
(10:11):
It is a store where thingsinside of it are 5 and below.
Anyway, we take the kids to fivebelow so they can buy something
for each other.
They have a budget.
They have 20.
So they can spend 5 on each oftheir siblings.
They know what their budget is.
They know what their max is, andthey are able to say, okay, I
(10:34):
know what I'm allowed to spend.
And if they get to the end oftheir purchasing and they have
extra money left over, they cantake it and go buy a 15 cent
piece of candy.
The fact that my kids are moreexcited about buying something
for their siblings, they want tospend every dollar that they can
spend on their siblings.
(10:55):
Instead of buying candy bringsme a whole lot of joy.
They know what their budget isand they are willing to spend up
to that limit, even if it meansthey don't get candy.
I love that.
This is encouraging.
Not only myself, but also mychildren to prioritize their
future needs over present wants.
Never give up what you want mostfor something that feels good
(11:18):
right now.
Another great benefit of aChristmas Club account is there
are often no fees associatedwith this.
Many banks appreciate the factthat you are intentionally
saving and they want toencourage that.
They will have your account setup, no feeds, and you may even
earn a small amount of interest.
And by small, I usually meanlike 0.
(11:39):
05 percent, not even a wholepercentage point.
This is not a money makingendeavor.
This is a stress reductionintentional savings effort,
because we want to make surethat next year for Christmas,
there's no way you're using acredit card for anything at all.
So we have sat down and we'veprioritized what's most
important for us for nextChristmas, based on the things
(12:02):
that we liked, things that wedisliked, and the things that we
just really missed out on thisyear, and we want to make sure
happen next year.
So how do we start saving nowfor that?
Well, go ahead and calculate upyour typical holiday spending.
What did you spend this year ongifts, on travel, on meals, on
decor?
Was it more than you thought youwere going to spend?
Probably if you weren't payingattention.
(12:25):
Is next year going to be more?
Next year, I'm going to haveanother child that I have to buy
for.
So maybe we have to increasewhat we set aside every month,
but you have to set a savingsgoal.
This goal can change throughoutthe year.
But for right now, look at whatyou spent.
Again, gifts, travel, meals,decorations.
What did you Spend money on thisyear.
(12:46):
Did you like it?
Did you not like it?
Do you want to add to it?
Do you want to take away fromit?
Calculate what you think you aregoing to spend next year for the
holidays based on what you spentthis year, and then break it
into manageable weekly ormonthly amounts.
Step two, you're going to openthe account.
(13:06):
A great thing to do is go aheadand research local banks or
credit unions for Christmas Cluboptions.
Make sure that their terms alignwith your goals, especially when
it comes to withdrawalrestrictions.
If you cannot open an account atyour bank, there are ways to set
this up in a savings account,and I will get to that in just a
(13:27):
moment.
Then I want you, step three, toautomate your contributions.
Set up a reoccurring transferfrom your checking account into
your Christmas Club account.
And then, step four, track yourprogress.
Review your statements.
Stay motivated.
If you would like, I have aChristmas savings tracker that I
probably should link down in theshow description, so that you
(13:48):
can just scroll down anddownload it.
It says Christmas in July, butit would be great for this year
starting today, make sure thatyou have money set aside.
And it's always great to have avisual reminder of the progress
you are making in your savings.
So here's some alternatives to aChristmas club account.
(14:08):
If a dedicated account, isn't anoption in your bank.
You can do a couple of differentthings.
You can use a high yield savingsaccount, like Laurel Road is a
great option.
That's where I have my highyield savings account.
However, you're not going tohave a lot of money in this
account, and you're not going tohave it in for very long.
So even if it's just a regularsavings account, That's okay
(14:30):
too.
You could set it aside in anenvelope in your house.
I would suggest having that in asafe or a lockbox of some sort.
Not just having cash sittingaround for anybody to come in
and grab.
Set yourself up with an envelopesystem that says every week I'm
gonna set this amount of moneyaside.
That's okay, too.
Just make sure you have it setsomewhere where it's safe.
(14:53):
You can also set money asideinside a budgeting app and call
it a Christmas fund category.
This is what I do.
I put my money just into myregular savings account and then
I write it down on a piece ofpaper that says I moved this
much money over to my Christmasfund every month.
It does not have to besophisticated.
(15:13):
It does not have to be crazy.
Although I'm now wondering if mybank does actually offer a
Christmas Club account.
They did not when I originallyset up my bank account, and I
wonder if they will have it fornext year.
You know what?
I'm gonna go check.
Any money that I have in mysavings account right now,
anything that is over and aboveMy three to six month emergency
(15:36):
fund, which I do keep close tomy account.
I don't have that in a highyield savings by high yield
savings is for my home downpayment.
But anything that goes into thataccount, it's usually a sinking
fund of some sort.
So I have my three to six monthsof expenses set aside in one
account.
And then I have another savingsaccount it's like a give and
(15:57):
take fund, where I put money infor sinking fund things, things
like Christmas, things like carrepair, things like car
insurance that I have to payevery six months.
I just put money aside for thosethings into a savings account.
I just write it down on a pieceof paper.
It does not have to besophisticated, my friends.
It just needs to be somethingthat you get into the habit of
doing.
(16:18):
So here are a couple practicaltips for you.
Start by making a plan.
It's really that easy.
Look at what you spent thisyear.
What did you like?
What did you not like?
What do you want to do again?
What do you not want to doagain?
How much do you want to spendnext year?
Tell yourself what you want todo and then make that the plan.
(16:38):
The next thing you need to do isjust start small.
If you're new to savings, 10 to20 a week is okay.
Start there.
You have to start somewhere.
25 a week will get you 1, 300 atthe end of the year.
That's enough.
I don't care who you are.
I mean, unless you're takingyour entire family to Tahiti for
(16:58):
Christmas.
1, 300 can be enough to have avery good Christmas.
If you are more sophisticated inyour savings and you have more
margin in your budget, you cango ahead and make bigger weekly
contributions.
But start small, just getstarted.
And then remember, next year, goahead and shop early.
(17:20):
You can start your holidayspending as soon as the
Christmas Club account opens,which again is usually at the
end of October, beginning ofNovember.
So you'll have that money therefor Black Friday, don't worry.
But you've already made a planon how much money you're going
to spend.
You already know who you'regoing to be shopping for.
So go ahead and start yourholiday shopping a little bit
(17:41):
earlier so you can avoid anylast minute or higher cost
purchases.
Friends, I am so excited thatyou have been here with me on
this Accelerate Your Legacyjourney.
I look forward to continuingwith you into the Money and
Career Mastery from Overwhelm toOwnership podcast.
(18:02):
And I'm so excited that we arestarting today on the things
that matter most to us.
paying attention, saying, okay,this is what I loved about this
Christmas, and this is what Iloved less about this Christmas.
And these are the things thatI'm going to make a priority to
do in the future.
My friends, you have the abilityto do big, things.
(18:26):
You have the ability to savemoney for Christmas next year,
to have the most beautiful,amazing Christmas that you've
ever had.
That's not going to result inpayments.
It's not going to result infinancial stress.
It's not going to result in youpaying interest on a gift,
because that's gross.
The next time I see you, it willbe 2025.
(18:47):
We will be celebrating the endof a great year, the beginning
of an even better year.
And we are going to be walkinginto a new chapter of this
podcast.
Again, you don't have to doanything.
This RSS feed is going to staythe same.
The artwork is going to bedifferent.
I will see you next week, myfriends.
Again, Merry Christmas, HappyNew Year, go out and make a
(19:13):
difference.
Thank you for investing yourtime with us today on the
Accelerate Your Legacy podcast.
Remember, your legacy isn't justmeasured in dollars and cents,
but in the tools, habits,mindset, and reputation you
leave behind.
Don't just listen to the show,but take action on what you've
learned.
Share this wisdom with a friendwho can benefit and help us
(19:36):
spread the word by rating andreviewing the podcast.
For questions or encouragement,reach out to me on Instagram at
Accelerate Your Legacy orexplore the resources listed in
the show notes.
I will be back with you nextweek.
Until then, build your legacywith intention.
Hello and welcome to the Accelerate Your Legacy podcast.
I'm Laura Sexton, your trustedfinancial coach and money
mindset specialist.
Join me as we explore the worldof money and money mindset while
also paving the way for alasting legacy that extends far
beyond money.
Together we'll eliminate stress,amplify freedom, and ensure you
(00:26):
stop paying for your past so youcan start saving for your
future.
If you're seeking peace in yourfinances, more margin in your
budget, and a legacy thatinspires generations to come,
you're in the right place.
Hello, Accelerators, MerryChristmas, and welcome to the
(00:49):
last episode of this season onthe Accelerate Your Legacy
podcast.
My friends, our time as an AYLcommunity has come to an end,
and we are moving on to biggerand better things.
I want you to come along withme.
Stay right here.
Nothing's going to change.
If you were subscribed to thispodcast, nothing is changing for
(01:11):
you except the picture.
That you see coming up everyThursday.
My friends, we are changing thename of this podcast to Money
and Career Mastery fromOverwhelm to Ownership.
We are going to be talking aboutall things optimizing income,
paying off debt.
We're still going to be talkingabout leaving a legacy and
(01:31):
building wealth.
This is going to be a time forus to come together.
and learn how to do things justa little bit better.
If you're already subscribed tothis channel, all you have to do
is stay right here for nextweek.
And if you're not alreadysubscribed, please go ahead and
click the subscribe button.
I would love to show up in yourpodcasting platform every
(01:52):
Thursday.
So, my friends, if you werelistening to this in real time,
yesterday was Christmas.
Merry Christmas to you, and Ihope that you enjoyed your
holiday.
I hope that you are stillgetting to spend time with your
friends and family and lovedones, because that's really
important.
And you may be asking, why inthe world, the day after
Christmas, I'm talking about aChristmas club account?
(02:14):
Well, I'm doing that because Ithink it's really important.
Americans spent more onChristmas this year than they
ever have before.
Which is crazy, because we haveall of this inflation, and I
would have thought thatChristmas spending would have
gone down, but I would have beenvery wrong.
In 2023, according to theNational Retail Federation,
(02:38):
Americans spend an average of 1,474 on Christmas related
expenses.
Now some of that's presents,some of that's experiences, some
of that's food, but the crazything is that 36 percent of
people went into debt for theirholiday spending.
According to LendingTree.
And it just, it makes me so sadbecause we don't need to be
(03:03):
going into debt and people thatput this on their credit card,
some of them are still paying itoff in April and May.
And what's really sad is thereare people this year.
At Christmas time, they're stillpaying for last year's Christmas
time.
And I don't want that to be you.
So I wanted to come on here andtalk about setting up a
Christmas club account and doingit today.
(03:25):
What is a Christmas Clubaccount?
Well, these were popularizedduring the Great Depression, and
they are now offered at manycredit unions and Some banks,
mostly on a local, smaller banklevel.
This is a chance for you to putmoney into an account all year
(03:46):
long, and the funds aretypically locked up until a set
date.
Usually, the end of October,beginning of November, to ensure
that money is spent only onholiday spending.
Now, the reason I wanted to goahead and talk about setting
this up, yes, because I want youto start saving money at the
very beginning of the year fornext year's Christmas.
(04:08):
It's crazy because people thatsave money for Christmas and set
it aside early, and they saveyear round for Christmas
spending, they spend on average25 percent less because they're
more intentional and lessimpulsive about their purchases.
And that is what we aim to behere in this legacy building
(04:31):
community.
You have been in the midst ofholiday craziness.
Things can get overwhelming.
There are many parties to go to.
There are presents to purchase.
There are activities.
People want to go see Santa.
There's so many things that youcould be doing.
Maybe you're spending time withyour family.
Maybe you're having a giantChristmas meal.
(04:53):
I don't know exactly what it isthat you are doing this year.
But I do know That for most ofus, Christmas can be a little
bit crazy.
I know this year we are tryingvery hard to make Christmas an
intentional, calm, relaxingtime.
And of course, having just goneto my daughter's Christmas
musical, there were a lot ofkids that were sick.
(05:13):
So while we're here, I wouldlike for you, before you do
anything else, to sit down andreflect on what it is that you
liked about this Christmasseason, and what it is you
didn't like, and you don't wantto do next year, and by doing
this, you are going to be ableto make it.
those priority things importantfor next year.
(05:35):
What is it about this Christmasthat you really enjoyed?
Was there something you did thatyou think that's a holiday
tradition I would absolutelylove to continue forward and do
every year for the rest of myyoung children's life?
Is there something that you sawthat you can't imagine doing
(05:55):
Christmas without?
These are the important thingsthat we want to make sure next
year we put high up on ourpriority list so that they get
done.
And if we have to fund them, ifit's something that's going to
cost some money, maybe it'sgoing to see Santa and getting
pictures, maybe you want to gosee some snow, and so you want
to go sledding, Write it down soyou don't forget next year.
(06:17):
You're still in the midst ofChristmas crazy.
So write down what you enjoyed.
At the same time, I want you towrite down the things that you
did not like.
Was there something that you gotdragged to that you said, Next
year, I don't want to do it.
Because I don't want it to comearound next year and you'd be
like, did I like, I mean, I seemto remember, I'm sure it was
okay.
(06:38):
And then you have to go to thisthing again.
You're like, that was terrible.
I don't want to do that.
Go ahead and write it down whileyou're still feeling the feeling
and set that boundary foryourself today.
Was there something that didn'thappen this Christmas that you
wish could have?
Maybe you ran out of funds andyou didn't have the money for
it.
Maybe you just weren't able toget your schedules aligned with
(07:00):
the people that matter most toyou.
Whatever it was that was missingthis Christmas.
Write it down now, so next year,you can make it a priority and
make sure that it happens.
The whole point of this, myfriends, is for you to pay
attention now so you canprioritize for later.
Yes, I am having you do somejournaling exercises, but trust
(07:22):
me, come this time next year,you are going to appreciate the
fact that you wrote these thingsdown and you're paying attention
to them now.
So, going back, that was, whatdid you like, what did you
dislike, what did you miss thisyear?
And what are we going toprioritize for next year?
Okay, so journaling exercisedone, and I'm so excited that
(07:45):
you're still here with me.
Let's talk about the benefits ofa Christmas Club account.
One of the main benefits is thisis going to encourage
intentional savings.
This is a muscle that I want youto be constantly strengthening.
Because if you're anything likeme, savings is fun and you like
that it's there, but the actualdoing it and the actual savings
(08:05):
is kind of hard.
Because I could be spending thaton other things that are
happening right here in front ofme, and if that is something
that you struggle with, I have apodcast on opportunity cost and
we can talk about giving up whatwe want most for what we want
right now and how important thatis, but I want you to be
Intentionally saving all yearlong, set up the Christmas Club
(08:26):
account, and you're going tomake automatic deposits into
that account.
If your bank offers a ChristmasClub account, they will set that
up for you.
These small consistentcontributions will add up over
time.
For example, if you save just 25a week, you are going to have 1,
300 for next Christmas.
(08:47):
25 a week does not sound like alot of money, but it gives you a
big result.
So if you're sitting there andyou're going, these are the
things that I definitely want tohave happen next year for
Christmas, and this is thegiving I want to do, and these
are the presents I want to buy,or at least the people that I
want to buy things for.
Is 1, 300 enough?
If it is, that's 25 a week.
(09:07):
Let's get it.
Let's go.
By having this Christmas clubaccount, you are going to reduce
your financial stress.
Is there any better reason to dosomething than to have less
stress in your life?
You're going to avoid the needto rely on a credit card or a
loan during the holidays, whichI hate.
It's my least favorite thingabout walking into my bank.
They're like, get a holidayloan.
(09:28):
I'm like, no, why would I wantto add stress to my life?
Stop it.
But it also ensures that youhave cash on hand, which can
prevent your overspending.
having a limit that you haveset, because you've put that
money aside.
Specifically, you are givingyourself permission to spend
this money.
And you are also giving yourselfpermission to not overspend.
(09:49):
Having a Christmas Club accountalso will help you learn good
money habits.
This is great for families tomodel intentionality and
budgeting.
Get your kids involved.
Let them know, hey, we set moneyaside all year long and this is
what our Christmas budget is.
I know for my kids, we take themto Five Below, which if you
don't have one of these, you canprobably guess by the name.
(10:11):
It is a store where thingsinside of it are 5 and below.
Anyway, we take the kids to fivebelow so they can buy something
for each other.
They have a budget.
They have 20.
So they can spend 5 on each oftheir siblings.
They know what their budget is.
They know what their max is, andthey are able to say, okay, I
(10:34):
know what I'm allowed to spend.
And if they get to the end oftheir purchasing and they have
extra money left over, they cantake it and go buy a 15 cent
piece of candy.
The fact that my kids are moreexcited about buying something
for their siblings, they want tospend every dollar that they can
spend on their siblings.
(10:55):
Instead of buying candy bringsme a whole lot of joy.
They know what their budget isand they are willing to spend up
to that limit, even if it meansthey don't get candy.
I love that.
This is encouraging.
Not only myself, but also mychildren to prioritize their
future needs over present wants.
Never give up what you want mostfor something that feels good
(11:18):
right now.
Another great benefit of aChristmas Club account is there
are often no fees associatedwith this.
Many banks appreciate the factthat you are intentionally
saving and they want toencourage that.
They will have your account setup, no feeds, and you may even
earn a small amount of interest.
And by small, I usually meanlike 0.
(11:39):
05 percent, not even a wholepercentage point.
This is not a money makingendeavor.
This is a stress reductionintentional savings effort,
because we want to make surethat next year for Christmas,
there's no way you're using acredit card for anything at all.
So we have sat down and we'veprioritized what's most
important for us for nextChristmas, based on the things
(12:02):
that we liked, things that wedisliked, and the things that we
just really missed out on thisyear, and we want to make sure
happen next year.
So how do we start saving nowfor that?
Well, go ahead and calculate upyour typical holiday spending.
What did you spend this year ongifts, on travel, on meals, on
decor?
Was it more than you thought youwere going to spend?
Probably if you weren't payingattention.
(12:25):
Is next year going to be more?
Next year, I'm going to haveanother child that I have to buy
for.
So maybe we have to increasewhat we set aside every month,
but you have to set a savingsgoal.
This goal can change throughoutthe year.
But for right now, look at whatyou spent.
Again, gifts, travel, meals,decorations.
What did you Spend money on thisyear.
(12:46):
Did you like it?
Did you not like it?
Do you want to add to it?
Do you want to take away fromit?
Calculate what you think you aregoing to spend next year for the
holidays based on what you spentthis year, and then break it
into manageable weekly ormonthly amounts.
Step two, you're going to openthe account.
(13:06):
A great thing to do is go aheadand research local banks or
credit unions for Christmas Cluboptions.
Make sure that their terms alignwith your goals, especially when
it comes to withdrawalrestrictions.
If you cannot open an account atyour bank, there are ways to set
this up in a savings account,and I will get to that in just a
(13:27):
moment.
Then I want you, step three, toautomate your contributions.
Set up a reoccurring transferfrom your checking account into
your Christmas Club account.
And then, step four, track yourprogress.
Review your statements.
Stay motivated.
If you would like, I have aChristmas savings tracker that I
probably should link down in theshow description, so that you
(13:48):
can just scroll down anddownload it.
It says Christmas in July, butit would be great for this year
starting today, make sure thatyou have money set aside.
And it's always great to have avisual reminder of the progress
you are making in your savings.
So here's some alternatives to aChristmas club account.
(14:08):
If a dedicated account, isn't anoption in your bank.
You can do a couple of differentthings.
You can use a high yield savingsaccount, like Laurel Road is a
great option.
That's where I have my highyield savings account.
However, you're not going tohave a lot of money in this
account, and you're not going tohave it in for very long.
So even if it's just a regularsavings account, That's okay
(14:30):
too.
You could set it aside in anenvelope in your house.
I would suggest having that in asafe or a lockbox of some sort.
Not just having cash sittingaround for anybody to come in
and grab.
Set yourself up with an envelopesystem that says every week I'm
gonna set this amount of moneyaside.
That's okay, too.
Just make sure you have it setsomewhere where it's safe.
(14:53):
You can also set money asideinside a budgeting app and call
it a Christmas fund category.
This is what I do.
I put my money just into myregular savings account and then
I write it down on a piece ofpaper that says I moved this
much money over to my Christmasfund every month.
It does not have to besophisticated.
(15:13):
It does not have to be crazy.
Although I'm now wondering if mybank does actually offer a
Christmas Club account.
They did not when I originallyset up my bank account, and I
wonder if they will have it fornext year.
You know what?
I'm gonna go check.
Any money that I have in mysavings account right now,
anything that is over and aboveMy three to six month emergency
(15:36):
fund, which I do keep close tomy account.
I don't have that in a highyield savings by high yield
savings is for my home downpayment.
But anything that goes into thataccount, it's usually a sinking
fund of some sort.
So I have my three to six monthsof expenses set aside in one
account.
And then I have another savingsaccount it's like a give and
(15:57):
take fund, where I put money infor sinking fund things, things
like Christmas, things like carrepair, things like car
insurance that I have to payevery six months.
I just put money aside for thosethings into a savings account.
I just write it down on a pieceof paper.
It does not have to besophisticated, my friends.
It just needs to be somethingthat you get into the habit of
doing.
(16:18):
So here are a couple practicaltips for you.
Start by making a plan.
It's really that easy.
Look at what you spent thisyear.
What did you like?
What did you not like?
What do you want to do again?
What do you not want to doagain?
How much do you want to spendnext year?
Tell yourself what you want todo and then make that the plan.
(16:38):
The next thing you need to do isjust start small.
If you're new to savings, 10 to20 a week is okay.
Start there.
You have to start somewhere.
25 a week will get you 1, 300 atthe end of the year.
That's enough.
I don't care who you are.
I mean, unless you're takingyour entire family to Tahiti for
(16:58):
Christmas.
1, 300 can be enough to have avery good Christmas.
If you are more sophisticated inyour savings and you have more
margin in your budget, you cango ahead and make bigger weekly
contributions.
But start small, just getstarted.
And then remember, next year, goahead and shop early.
(17:20):
You can start your holidayspending as soon as the
Christmas Club account opens,which again is usually at the
end of October, beginning ofNovember.
So you'll have that money therefor Black Friday, don't worry.
But you've already made a planon how much money you're going
to spend.
You already know who you'regoing to be shopping for.
So go ahead and start yourholiday shopping a little bit
(17:41):
earlier so you can avoid anylast minute or higher cost
purchases.
Friends, I am so excited thatyou have been here with me on
this Accelerate Your Legacyjourney.
I look forward to continuingwith you into the Money and
Career Mastery from Overwhelm toOwnership podcast.
(18:02):
And I'm so excited that we arestarting today on the things
that matter most to us.
paying attention, saying, okay,this is what I loved about this
Christmas, and this is what Iloved less about this Christmas.
And these are the things thatI'm going to make a priority to
do in the future.
My friends, you have the abilityto do big, things.
(18:26):
You have the ability to savemoney for Christmas next year,
to have the most beautiful,amazing Christmas that you've
ever had.
That's not going to result inpayments.
It's not going to result infinancial stress.
It's not going to result in youpaying interest on a gift,
because that's gross.
The next time I see you, it willbe 2025.
(18:47):
We will be celebrating the endof a great year, the beginning
of an even better year.
And we are going to be walkinginto a new chapter of this
podcast.
Again, you don't have to doanything.
This RSS feed is going to staythe same.
The artwork is going to bedifferent.
I will see you next week, myfriends.
Again, Merry Christmas, HappyNew Year, go out and make a
(19:13):
difference.
Thank you for investing yourtime with us today on the
Accelerate Your Legacy podcast.
Remember, your legacy isn't justmeasured in dollars and cents,
but in the tools, habits,mindset, and reputation you
leave behind.
Don't just listen to the show,but take action on what you've
learned.
Share this wisdom with a friendwho can benefit and help us
(19:36):
spread the word by rating andreviewing the podcast.
For questions or encouragement,reach out to me on Instagram at
Accelerate Your Legacy orexplore the resources listed in
the show notes.
I will be back with you nextweek.
Until then, build your legacywith intention.
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