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7 Tips For Saving Money This Holiday

 

It is that time of the year again. We have a long line of holidays waiting to close out the year and begin a new one. It is a wonderful and fun time when families and friends come together, eat together, exchange gifts, and share good times. Needless to say, the holiday period also comes with extra expenditure we do not normally make in ordinary times. However, while we are trimming the Christmas tree, it is important to find ways to trim our expenses so we can save despite the holidays.

We recommend seven ways to make sure that at the end of the holidays you would have more money in your pocket.

1. Prepare a budget

Shopping without a budget is a surefire way to overspend, especially this period when there is no shortage of people to spend on. The first thing to do is to sit down, take a pen and paper, and assign how much goes to what. Budget for everything down to the cards, then commit to someone close to you that you will stick to the plan. Of course, it makes no sense budgeting if you do not follow it through.

2. Pay yourself first

There is an old saying that states: you do not save what is left after spending, rather you spend what is left after saving. Most times your paycheck comes net of taxes, meaning that you have paid the government first. Who is the next person you should pay? You! That is right, and the only way to do it is to move some money to your savings or investment. And there are a lot of investable channels popping up giving the news regarding dinar intel.

3. Cut down on your expenses

Most times, people wait the whole year to spoil themselves or their loved ones this season. It is okay, but you can indulge them a little less and save some money in the process. So, instead of eating out at a 5-star restaurant, you could go to your regular Italian place and order their best dishes.

4. Change costly habits

Often some of our habits are the drain pipes on our savings effort. Expensive and unprofitable habits like smoking, drugs, and gambling can never help us in the drive to save more. Another incentive is that there is no better gift you can give to your loved ones than to quit such obsessive, compulsive habits. What is more, you will save a ton of money in the process.

5. Non-monetary gifts

Gifts do not have to come with expensive price tags. There are always options. Something like homemade cookies or cakes are especially delightful gift items when given to the appropriate person, and they do not cost an arm. Homemade cards and other such personalized gifts cost nothing, but the recipient knows that you put your time into them. Also, you can find other great inexpensive gift ideas online.

6. Make the most of sales

During this period, most shops splurge on sales. Use the internet to compare prices and get coupon codes. It is important, however, to ensure you limit your buys to what you need and not get carried away by discounts.

7. Is there a substitute?

When making purchases this season, especially for gift items, it might make sense to go for less popular and lower-priced alternatives. For instance, last year’s model of television will cost less and still share a lot of features with the trending ones.

Applying these tips faithfully will surely save you some money this holiday season. Now that you have been able to save, what should you do with the saved funds? The first question to answer is what was the purpose of saving? The answer to this will largely determine how you can invest the money.

If the saving was for buying something in the immediate term, then a savings account is the best way to go, as it offers you the convenience of being able to withdraw you’re your money whenever you want it. But if the need was for a short-term of six months to one year, it will be more advisable to invest in a certificate of deposit (CD). However, depending on your plan, Bank of America believes a combination of the two options will serve you better.

In the event the saving effort is for a long-term goal, then the capital market is the best bet. There are a lot of high-quality bonds that will pay coupon-interest and still have the potential to rise in value over their lifetime. Also, depending on one’s risk appetite, there are higher paying but lower-quality bonds.

Then there is always the stock market which may require some level of expertise before one can operate in that arena. There may be the need to hire a professional funds manager if the savings are quite substantial. Alternatively, one can invest in mutual funds and have the advantage of his or her money being managed professionally alongside others.

About Kimberly

Kimberly Vetrano resides in the suburbs of New York City with her family and "mini zoo" consisting of five cats, a dog and a Goldfish. Kimberly is a teacher's assistant for a Kindergarten class. When she is not working or blogging, Kimberly enjoys taking photos of nature and hanging out with family and friends.

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