Saving Money This Holiday Season

The supply of holiday-related items and gifts is expected to be at its lowest in over a decade this season. While supply-chain officials work to alleviate the back log of goods stuck in the shipping ports, many people are bracing for added costs to their typical holiday items. Many consumers are beginning to report record high prices on gift purchases this season.

Although the average consumer cannot do anything about the supply and demand trends we are experiencing, they can take steps to manage their spending this holiday season. Here are a few tips for saving money this holiday season:

1. Plan your budget – This may seem like a simple strategy taught by your grandparents, but it works. Research shows that consumers who routinely track their spending, review their income and payments often, and plan for bigger purchases in their budget are more likely to stick to it.
2. Save or set aside spending budget – Part of budgeting requires that you be able to predict when some larger purchases may occur, and begin saving money for that larger purchase to avoid spending too much in too short of a time. Additionally, consumers that consistently save money each month also spend less and adhere to their budget more closely than those who do not save money. An easy way to save money each month, is by creating an automatic draft of a portion of your paycheck into your savings account.
3. Pay in cash – In budgeting for larger purchases or holiday spending, it can be tempting to lean on credit cards. However, consumers that pay in cash not only save the added costs of interest fees; but, they also spend less overall and make smarter purchases with the cash. Using credit cards can facilitate an “out of sight, out of mind” mindset that leads to more purchases.
4. Purchase small – The holidays tend to sneak up quickly each year, leading to a lot of large purchases at all once. If possible, budget for some purchases earlier in the year to spread out the costs across months to avoid overspending or using credit cards.

For more information about financial management or questions about debt relief, contact a Sacramento bankruptcy lawyer at 916-459-2364.