Our Buyer’s Tip for December’s upcoming newsletter, which you can sign up for here, comes courtesy of our mortgage lending expert Nenci Rodriguez who advises buyers to pay extra attention to their spending during the holidays. From a report by CNBC, on average, Americans accrued a debt of $1,325 during the holiday season in 2020. And while we understand wanting to get only the very best for our loved ones, it pays to be more conservative with spending during this time.
Instead of acquiring an amount of debt that could take years for buyers to pay off, Nenci recommends not opening new credit cards or going over 50% of your existing total credit card limit. Rather, buyers should try to be budget-conscious when picking out gifts for loved ones or while traveling to avoid incurring any unnecessary debt during a time when their credit scores will be closely monitored.
So, how can you save money instead? Well, we compiled five practical tips for putting more pennies in your piggy bank this holiday season!
How To Save, Instead of Spend
Tip #1: Carry Cash On Hand
So, how do we make sure we stick to a budget? Well, one of the best ways is to not give ourselves a choice! If you take cash out at an ATM, only the cash that you need for your upcoming purchases, then you can be assured that you will not be going over budget. It can be very easy, perhaps too easy, for us to just swipe our cards at the register without a firm idea of how much money we’re actually spending. Take that variable out of the equation so you can make sure you’re not going overspending.
Tip #2: Start Shopping Early
Another way to save money is to start your holiday shopping early. How early you may be asking? We’d say as early as possible! Starting your shopping early will mean that you can avoid the chaotic competition of the Christmas shopping season. There are many sales throughout the year, and while Black Friday deals may be tempting, they might not be the best option if you need to shop in person to get them. Take advantage of online deals and sales, including online Black Friday and Cyber Monday deals. Subscribe via email to the stores that you like to frequent so you can get sale details and coupons sent straight to your inbox.
Tip #3: Get Creative
Even if you don’t think of yourself as being a particularly creative person, it’s surprising what we can come up with when we’re given complete creative liberty! Go to a local craft store and buy crafts that interest you. It might be nice cardstock that you can create your own custom holiday cards with. It could be beautiful yarn that you can see becoming a hat or gloves for a loved one. Whichever project you decide upon, you can be sure that your loved one will appreciate the gesture that comes straight from the heart.
Tip #4: Do a Secret Santa
Starting a Secret Santa is a great way to make sure that no one in the family goes overboard with their gift buying. Make sure to set a budget for everyone so no one feels pressured to get an extravagant gift. The best part of Secret Santa? The element of surprise! This is a great opportunity to get a thoughtful, but potentially unexpected, gift for a loved one. If you have a big family, you know how hard, and costly(!), it is to get a gift for everyone. Doing Secret Santa will mean that no one gets left out, no one spends too much, and that everyone feels loved and valued this holiday season.
Tip #5: And Most Importantly, Set A Budget!
We saved the best tip for last! This tip might seem too obvious—of course, you’re going to set a budget! But, it is the most important tip of all, so it bears repeating. Setting an overall budget for your holiday spending is the best thing you can do for your wallet. Review your finances with a fine-tooth comb to see how much exactly you can spend. See if you can cut back in some areas to create a bigger allowance for your holiday spending. Go over the budget with your partner if you need to so you can make sure you’re both on the same page.
So, There You Have It!
We hope you found our tips for saving money during the holiday season to be helpful to you and your family! We know how stressful this time of the year can get, especially when you’re trying to save money for a big purchase. Hopefully, our tips helped lift some of the weight off of your shoulders so you can focus on what’s really important to you this holiday season.
🎄 Happy Holidays! 🎁
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About Gerardo Zavala, Realtor
There is a true passion for connecting people with real estate that makes me fall in love with my career over and over again. While my title says, REALTOR® I think I am much more than that. For example, I am present and actively listening to my client’s needs, on the spot when things are urgent, and by your side to say “congratulations.” Most of my clients will say that I am a connection away from support no matter the situation, day, or time. In my opinion, customer service, educating the client on progress and next steps, and overall satisfaction are my top priorities. How can I help you?
