6 Money Rules to Keep You Financially Happy This Holiday Season

As the holiday spirit fills the air, it’s easy to get swept up in spending, so here are six essential money rules to help you stay on track while celebrating. Consider these principles as a gift to your future self:

1. Have Separate Accounts for Long- and Short-Term Goals
   Just as the holiday season has its own unique joys and expenses, so do the different chapters of our financial lives. Keep one main investment account for long-term growth and another for short- to mid-term goals, like saving for a family vacation or holiday traditions. Align each account with specific milestones and timelines, so you’re never sacrificing one goal for another.

2. Don’t Be Too Restrictive With Your Budget
   Budgets aren’t meant to be holiday Grinches! Make room for spending that brings you and your loved ones joy this season. Perhaps it’s a special dinner with friends or an annual outing. Focus on what matters most, and find other ways to trim expenses—like skipping unused subscriptions—to make space for your priorities.

3. Automate Your Savings
   Just as holiday decorations seem to appear overnight, automating your savings lets your funds grow without a second thought. Set up automatic transfers to a high-yield savings account for an emergency fund or a retirement plan if you have one through your employer. If there’s an employer match, take full advantage—don’t leave those “holiday gifts” on the table!

4. Spend More to Save More
   Quality is worth the extra investment, especially for gifts and big-ticket purchases. Look for sales on high-quality items and take advantage of seasonal discounts, like post-holiday deals on winter gear. Loyalty programs and coupon searches can also make a real difference—small savings add up over time.

5. Watch Out for Small Charges on Your Statements
   Between the holiday shopping hustle and travel costs, smaller charges on credit card statements can slip through unnoticed. Reviewing these monthly helps you avoid any sneaky charges. Even those little line items add up, so if you see anything odd, report it quickly. It’s like checking your holiday gift list—nothing should be missing or unexpected!

6. Embrace a “Made-for-You” Approach
   Holiday traditions vary from one family to another, and so should your personal finance plan. Don’t feel pressured to follow a “one-size-fits-all” approach; instead, base your spending and saving decisions on what brings you and your family true joy and peace of mind.

The Bottom Line

In the season of giving, remember to give yourself the gift of financial flexibility. Rules of thumb are great guidelines, but having a plan that can adjust to life’s changes will keep your financial goals within reach—all while allowing you to savor the holiday magic.