Are you one of those well-organized folks who have already started your holiday shopping? If you are, then we’re not too early to offer some sound financial planning advice for making your season great!
It’s easy to get carried away when shopping for family and friends, especially after the limitations we all were under this past year. Our advice - make a plan now to minimize debt while putting money where it absolutely needs to go. Here are some good steps to help guide you:
- Really get to know your financial situation: If you’re trying to get your finances in order, plan a visit now with a financial planner. This meeting should extend beyond your holiday spending to setting goals for saving, investing, and reducing or removing debt and setting financial goals for the future. Luckily, we have a dedicated Registered Representative of U.S. Eagle Investment Services® that can help. Contact James Armer at 505-342-8930 or James.Armer@cunamutual.com to set up an appointment.
- Create and stick to a holiday spending budget: Set a spending amount that you will not exceed and start setting aside cash in an account to cover it. Once you start your shopping, figure out how much money you can safely spend and stay as close to that number as you can.
- Avoid the binge: Staying on track can be tough. You may feel the need to stray a bit, but avoid ANY unplanned purchase above a certain threshold, such as $25.
- Price gifts online, then compare at the store or by phone: Browsing online can help you save money by comparing prices in little time. Check out websites like mySimon.com or cheapuncle.com to get general price ranges for gifts sold online. Once you have those ranges, get on the phone and determine whether you can buy the same items more affordably at retailers close to home – and save gas whenever possible.
- Don’t forget the coupons: Coupons aren’t just in newspapers or direct mail anymore. Get on the e-mail lists of the stores you like best – you’ll start getting coupons and news of specials on a regular basis. Also, if you do shop online, sites like BradsDeals.com and CouponCabin.com have promotional codes that you can type in for discounts before you hit the “total” button on an order.
- Don’t forget taxes and shipping when shopping online: Online prices might look like a great deal until you realize you may be spending another 20 percent of the gift’s price to get it to your house or the recipient.
- Allocate spending for charity: You can either make charity a separate item in your annual budget or part of your holiday budget, but if there are specific charities you want to support by year-end, it’s a good idea to decide on those amounts before the holiday shopping season gets underway. This way, you can support the organizations you wish to without going over your budget.
- Get those Rewards Points: If you use a credit card to make in-store or online purchases, make sure to use one that has great rewards. For instance, US Eagle Visa® credit cards can earn up to 2x points during the holiday shopping season.
