It’s hard to believe we are already approaching the end of another year, and holiday season will soon be here. Since holiday spending doesn’t include just gifting, it’s essential to set your budget now. You may likely find yourself spending extra on food, decorations, holiday travel, and more. According to a forecast from Deloitte, U.S. consumers will spend up to 9% more this holiday period compared to 2020. With holiday travel now an option, more Americans may choose to visit family or take vacations and in-person spending will increase since COVID restrictions have been lifted.
Here are eight tips to help you start the New Year holiday debt-free from holiday spending:
1. When planning your holiday shopping write down everyone you’d like to buy gifts for and assign a reasonable dollar amount to each. Planning creates a blueprint to follow for your shopping and helps keep your spending on track with your budget.
2. If you plan to use credit, consider using a credit card that offers cash back or rewards. You may gain some additional benefits or rewards to help lower the cost of spending.
3. When shopping for specific items, don’t settle for the first price tag you see. Research the item online to see if you can find a lower price elsewhere or utilize a select store’s price match.
4. Consider buying an older version of the big-ticket item you desire. Last year’s edition may save you money as retailers discount big-ticket items at the end of the year to make room for newer models.
5. Brainstorm a list of gifts you could potentially make yourself. Making gifts will help you to save and also show the recipient you’ve invested your time and effort into their gift!
6. Keep an eye out for everyday price cuts instead of holding out for Black Friday or Cyber Monday. Many stores will offer discounted items ahead of these one-day sales.
7. Don’t wait until the last minute, as rushing may lead to overspending. Take the stress out of holiday shopping and start crossing off items on your gift list as soon as possible.
8. Save ahead of holiday season and utilize your bank’s automatic transfers to set up a holiday savings account.
Don’t let the holiday season take a toll on your wallet by confidently planning your spending with a budget. Need help developing a savings plan for future goals or retirement savings? Your financial professional can help. Contact us today!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by FreshFinance.
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