The Secret to Planning for Big Expenses and Purchases

The Secret to Planning for Big Expenses and Purchases

In the 1970’s, commercial banks promoted ‘Christmas Club Accounts’. Brilliant. 

They were a clever vehicle for the banks to generate savings accounts with growing account balances. The pitch was that it’s easier to accumulate enough money to purchase Xmas gifts, in small amounts, month by month. 

I find it can be difficult to accumulate for example $2,000 in one shot. On the other hand, it’s much easier to set aside one-twelfth (1/12th) of the target amount every month or one fifty-second (1/52th). Or $166.67 every month [$2,000 divided by 12]. Or $38.46 per week ($2,000 divided by 52]. Bite-size pieces. 

By planning ahead, you can avoid incurring costly credit card interest and meet your goal with ease.

For more information about how to make a personal budget, click here.