Getting Ahead on Saving This Holiday Season—A Millennial's Guide
With so much spending going on this time of year, it can be difficult to keep track of your money and stick to your financial commitments. The rush of shopping for holiday presents is the best time for you to gear up and get your spending plans in order.
Preparing your shopping list beforehand is, of course, a given. But financial planning for the year-end with changed budgets resulting from unexpected events might be a little more challenging.
To help you stay on track and start the new year right, consider consulting with reputable financial advisors today.
Why Do I Need Financial Planning for Holiday Shopping?
Never underestimate the power of planning properly for big shopping seasons, particularly in the holidays. This is the time of year when most people spend beyond their means, which can often put a dent in their life savings or, worse: plunge them into debt.
Planning all your expenses, sources of income, and what requires prioritization or compromise is best done with trusted black financial advisors who will understand your needs and goals. They’ll help you towards the best course of action so that you can avoid the dreaded credit card balance when January 1 rolls around!
Here are some steps you can take to prepare your finances for the holiday season and through the New Year:
1. Prioritize Your Savings and Stick to a Budget
Refer to a comprehensive list of all your expenses, including shipping fees, gasoline, and parking payments (if you plan on driving to the store), and allot your budget accordingly. This season, you may be willing to extend a bit of your budget to accommodate your shopping needs, but only do so after you have planned so you can adjust within reason.
Having a separate spending bank account will allow you to categorize your saving goals, all under the same account number. This makes it easier not to reach over to your main savings account and withdraw more than what you need for shopping expenses. It also allows you to see which “buckets” all of your planned expenses are trickling into!
One of the best ways to do this is to save early on in the year so that come holiday time, you will have enough to spend on gifts and other holiday expenses. Perhaps you’ll even be left with a bit of excess to funnel back into your main savings account to start the New Year on the right financial foot.
2. Monitor Your Credit
Large purchases are not unusual during the holidays. Unfortunately, this also makes people susceptible to fraudsters waiting to pounce on personal information and make unauthorized purchases using your credit card. Since the holiday season is so busy with things to do, gatherings to attend, and purchases to make, many people might not be that meticulous about checking credit card statements.
Signing up for a credit monitoring service is easy and can alert you to suspicious credit card activity. As soon as you encounter any red flags, you can notify your credit card provider.
3. Coupons, Coupons, Coupons!
When it comes to black financial literacy, it’s all about making the most of all the resources you have available and creating new opportunities to continue building a financially stable future. Coupons may not seem like they’ll make a difference, but consider the number of these you get in your mailbox, newspaper inserts, and online. Saving every little bit counts, and you can be assured that you’ll get the best value for your money on your holiday shopping spree.
Try Honey, Rakuten, and Pricescout to get even more discounts.
Making good financial decisions during the holidays doesn’t mean you’re not entitled to spending money on presents, decorations, and events. It entails buying within your means to ensure that you start the New Year in a better spot financially! Nobody wants to be haunted by a large credit card bill for the rest of the succeeding year. With the guidance of the right financial adviser and extra diligence in planning out your finances, you’ll ring in 2021 with a little more in your pocket and a skip in your step!
Here at urbanwallet®, we believe that money is power. With our team of African American female financial advisors and the right technology, we empower urban millennials with strategies to leverage their money. Join our group today and get in touch with us for more on financial literacy!