Despite our best efforts to rein in spending over the holidays, December typically ends up being a costly month. It can be all too easy to get carried away and start the New Year with your finances off track.
Fortunately, there's another way: Start saving now and you can spend stress-free during the holiday season. We've got you covered with easy (and even fun!) ways to save $1,000 in 30 days.
The Plan of Attack: Set Up a Weekly Savings Challenge
Saving $1,000 in 30 days may seem like a challenging feat. But if you break down a big savings goal into smaller, manageable steps, it's doable. You could even make it fun by setting up a weekly savings challenge. This handy savings goal calculator can help you figure out how much you need to save to reach any goal—and we have some ideas below on where that money can come from.
To accept the $1,000-savings-in-30-days challenge, you'll need to save $250 a week—just over $35 per day. You can funnel the funds into a high yield savings account for safekeeping. Then, set up an automatic savings plan of $250 on a designated day of the week. This way your money is out of sight, out of mind until you're ready to use it for the holidays.
Read on for four strategies for finding that money, even if your budget is already bursting at the seams. Can't afford to bank an extra $250 per week? Shoot for $100 saved, and you'll have $400 saved in a month. Winning!
1. Go on a financial scavenger hunt
Believe it or not, you probably have money just sitting around. Now's the time to find it. Here are three easy places to start:
- • Round up spare change. All those coins you have languishing in a change jar, your car, your backpack or the kitchen junk drawer? It's literally cold, hard cash. Go on a treasure hunt, and see how much of a dent you can make in your weekly savings goal.
- • Corral your gift cards. You probably have a stash of unredeemed gift cards hanging around—whether it's because you forgot you had them; they're for a store you don't frequent; or, be honest: You have no idea how much is on there and can't be bothered finding out. Well, now's the time to convert that plastic gold. Write down all the cards and the amounts, and determine how you can use them to tackle your shopping list. Can you spend them on the essentials you need? Can you use them to buy gifts for someone on your list, making that gift “free"? Can you sell them online at a site like CardCash or Raise? (You might lose some of the value, but getting some back is better than nothing.) However you divest of them, you can apply that total to your savings goal if you spend it in areas where you otherwise would have tapped your credit card.
- • Put the kibosh on wasteful spending. Start by scanning your past month's transactions. Are there subscriptions or purchases you could give up? Maybe you're dropping $50 a month on a Pilates class you never attend, or you forgot to cancel a streaming subscription you don't use. Every little bit adds up and can be added to your weekly total.
2. Put one category on ice for the whole month
It's hard to cut back everywhere, but you can probably cut back somewhere. Check out these ideas for inspiration for a category to consider cutting out—and adding the money you would have spent to your savings goal.
- • Hello, leftovers. If you typically drop $20 on lunch and coffee every workday, eating a packed lunch from home will save $100 per week. Skip a month of take-out lunches and save $400!
- • Goodbye, retail therapy (for just a little bit). Guilty of spending $200 on a Target trip when you went for one item? Take a monthlong break from those trips and pocket the $200 (or more) instead.
- • Freeze your fun nights out, but don't freeze the fun. Sure, hitting the bar for a night out can be a blast, but your home (or your friend's home) is free. You can still indulge in karaoke night or snack-filled movie marathons without draining your account.
The goal is not to feel guilty about what you've already spent, but to get real with your finances and find little ways to improve.
3. Designate a “no-spend weekend"
We didn't say a “no-fun weekend." Instead of confining yourself to the couch for a weekend of mindless streaming and freezer-burned leftovers, make it part of the fun to find ways you can live large without spending large. Here are a few ideas:
- • Peruse online community groups or do a simple online search of your town, and you're bound to discover a host of options—from holiday festivals and craft fairs to holiday displays and hiking adventures.
- • Check out your local library for more than books. Many of them have passes to popular museums and attractions, or a “lending library" with craft supplies or tools you can borrow free of charge to tackle a project or try a new hobby with zero investment.
- • Host a potluck with your friends with a fun rule—they have to whip up a dish using only the ingredients they already have in their freezer or pantry. Try apps like SuperCook or MyFridgeFood to find recipes that correspond to what you've got on hand.
4. Take the cash-only challenge
On TikTok it's known as “cash stuffing," and the premise is simple:
- • Determine how much you're going to spend on each of your budget categories (meals out, entertainment, groceries, personal services, etc.) and allocate a sum for the month (ideally about $1,000 less across categories than you normally would in order to meet the $1,000 challenge).
- • Put the predetermined amount of cash into envelopes—that's what you have to spend for the month (or you can do it by week, if that's more manageable).
- • Once the cash is gone, it's gone! It's a powerful way to stay disciplined as you literally watch the amount you have to spend dwindle.
While cash stuffing can be a great exercise in financial responsibility and a fun way to jump-start your $1,000 savings goal, paying for everything in cash may be unsustainable. You might be missing out on rewards (like cash back) that you'd be earning effortlessly when using a no annual fee credit card for your purchases. Just remember to pay off your credit card every month so interest doesn't accrue.
Put Your Savings to Work for You
Once you start saving, the hard work is done. Now, let your money do a little bit of the heavy lifting. When you keep your savings stashed in your checking account, it doesn't earn much (or any!) interest, and there's a temptation to spend it. Instead, tap into the power of compound interest, which is when the money you saved earns interest, and then your interest earns more interest.
There are several savings accounts you can choose from to help you keep your holiday savings separate from your everyday banking needs. These interest-earning accounts are easy to set up, and they earn a competitive annual percentage yield (the amount of interest you can earn in a year):
- • High yield savings accounts help your money earn a higher interest rate without locking your savings away.
- • Money market accounts combine the features of savings and checking accounts, where your savings can earn a competitive annual percentage yield but still be accessible via check withdrawal.
- • Certificates of deposit (CDs) give your savings a competitive interest rate—but remember that your money is untouchable for the term of the CD (unless it's a no-penalty CD).
So, which is the right choice for your holiday savings goals? Consider a high yield savings account, money market account or even a three-month CD for this year. You can opt for a longer-term CD for future holiday saving plans.
Saving $1,000 in a month might sound daunting, but the suggestions above can get you off to a good start. Like many things, saving money is a mindset. Is it more fun to splurge on fun purchases? Sure. But think of this pre-December how-to-save $1,000 challenge as a future gift to yourself—the gift of $0 of new debt for the New Year.
Synchrony's savings products can help you save painlessly, with options that allow your money to grow all year long. Find the one that fits your needs.
Ashley Eneriz is a personal finance writer based in Southern California. She's been featured in Forbes, Yahoo, Reader's Digest and more.
Cathie Ericson is an Oregon-based freelance writer who covers personal finance, real estate and education, among other topics. Her work has appeared in a wide range of publications and websites, including U.S. News & World Report, MSN, Business Insider, Yahoo Finance, MarketWatch, Fast Company, Realtor.com and more.
READ MORE: Jump-Start Your Post-Holiday Savings
