Habits that help you spend less
By Patricia Lloyd
Redstone Federal Credit Union
Welcome to the expensive holiday season! Money management isn’t easy any time of the year but can be even more challenging from October through December.
According to the National Retail Federation, holiday spending hit $957 billion in 2023, for an average of $1,430 in consumer holiday spending.
If money is tight, there are ways to tame your spending habits and learn to save for what’s important to you.
Make a plan. Set a budget and stick to it. Use a spreadsheet or app to track all your purchases. Decide in advance how much you’ll spend on gifts, eating out, clothing and entertainment.
Focus on the long term. That $5 fancy coffee you purchase on your way to work may bring you joy, but the cost adds up quickly! If you make a pot at home instead, you could save $25 per week – adding up to $1,300 per year. Giving up immediate gratification can bring long-term benefits.
Choose the cheaper option. Cook at home, stream that latest movie and host a potluck instead of covering all the food and drinks for your holiday get-together.
Don’t follow your friends. Are they buying the latest gadgets or trendy, name-brand clothes because you’re trying to keep up with friends or social media influencers? Choose spending habits that benefit you – not others!
If your spending habits have put you in debt, here are a few ways to chip away at that debt.
- Be accountable. Take a look at your debt and get the full picture. Don’t be an ostrich!
- Divide and conquer. After taking an audit of your debt, divide it into two categories: Quick Payoff – for small debts with a small payoff; Longer Payoff – for larger debts that take longer to pay off.
- Automate your payments. Set up an automatic payment plan for this debt so that you don’t forget it. Missed payments will lower your credit score.
- Plan ahead. Start saving for the holidays today. We all know that Christmas comes each December, put money away each month so that you are ready!
Need more resources? Redstone Federal Credit Union can help you improve your financial wellness at: redfcu.org/financialwellness
