With the Thanksgiving and Christmas season right upon us, I thought it’d be a great time to update everyone with my Top Ten Holiday Spending Tips. Some are unique, others time-tested, and a few will help you blast gift expectations away and become more thoughtful in every aspect of your holiday giving. The last is selfishly my favorite tip. I hope you enjoy them!
1. Make Your Gifts – Simply picking an item from your gift receiver’s favorite store is the easy thing to do. But assembling your own gift is worth the effort for the recipient and yourself. You’ll force yourself to try something you normally wouldn’t, and the gift receiver will be forever grateful for the effort you put into their gift.
Best yet is the gift ideas are seemingly endless. So go ahead and give it a try this year. You may or may not save money as a result, but your rewards will be much deeper than that. In my experience when people receive homemade gifts they treat them as special family items they cherish for years.
2. Contribute to a College 529 Plan – Sure most kids want a toy they see on TV, but their parents are probably figuring out how the heck they’ll pay for lil Johnny’s and Susie’s college tuition in 10 years. The beauty of college 529 plans is anyone can make a contribution to one.
Your contribution is likely to qualify as a tax free gift or state income tax deductions. Making a contribution to a close family member or friend will be greatly appreciated down the road when the new grad accepts their diploma.
If you’re not sure where to begin head to the Contact Us page to get started.
3. Give to Charity – This is often overlooked by many this time of year. Besides the bell ringer outside your favorite department store there are many charities in need. Plus charitable donations are tax deductible, subject to IRS rules, which is a double bonus!
Of course, contributions don’t always have to be in cash, nor does it have to be a homeless shelter or food pantry(although they could use the help). There are plenty of non-profits in dire need of an extra hand with friendly people to meet. Research shows people who give to charity and volunteer regularly report happier lives.
I support the Chicago Police Foundation. The Chicago Police Foundation’s mission is to #HelpOurHeroes by improving public safety in the city of Chicago through funding programs, equipment, and training for the Chicago Police Department. CPF also provides scholarships to police families with $56,000 awarded in 2024. CPF also purchases life-saving LEMART first aid kits for our officers. Over 700 lives have been saved with the LEMART first aid kits since the program’s inception.
Use the link below to donate to support CPFs scholarship, LEMART first aid kit, and other programs.
https://www.chicagopolicefoundation.org/donations
4. Use a Separate Savings Account – This is a slightly advanced tip for those who do well with setting aside money and are not inclined to touch it. If you set up a separate savings account specifically for gifts you can accumulate a war chest throughout the year. Plus when it comes time to start buying gifts you’ll know exactly how much you have in the bank to spend. You could always choose to spend less and send the surplus to your retirement IRA.
Don’t have an IRA? Then Contact Us to get your account open today!!!
5. Set a Budget – Setting a budget specifically for the holidays can help you control spending. Research shows that when you write out your plans and limits you’re more likely to reach your goal. Take five minutes to set the amounts you’ll spend on each person. Just stick to it!
After a shopping trip compare how you did to what you expected to spend. Valor Advisers offers a slick budgeting tool available for download on Android or Apple Phones. You’ll need to create a free login first which you can setup here.
6. Set a Timeline & Shop Online – If the Holiday rush feels overwhelming set a specific period to do all your shopping. Select dates you’ll knock it all out and enjoy the rest of what the Christmas season has to offer! You can dedicate one weekend to shopping leaving plenty of time to spend with family and friends.
Or, shop from the comfort of your couch every night. You can avoid the stress of sitting in traffic, fighting over a parking spot, crowded aisles, and braving the cold while relaxing in the comforts of your home. When shopping online search for coupon codes and use deal-finding apps. This can help you save big bucks with minimal effort.
7. Use Cash – If you have trouble keeping a budget this option is for you! Don’t even think about whipping out your credit or debit card. Plus don’t fret about how many “points” or “miles” you’ll miss out on since those benefits are quickly eroded once interest charges start hitting your statement. For many people using cash makes it easier to visualize what they are spending. When the pile gets smaller you know the money is running out.
Leverage this old-fashioned technique to your advantage!
8. Buy Early & Often – I know it’s not July anymore but keep this in your back pocket for next year.
It’s a good idea to buy gifts ahead of time in the summer, or even spring.
Why?
Certain items normally go on sale during warmer seasons, and might not be discounted come fall and winter. If you see an item you know would make a great gift, and it’s selling for 50% off in July then snag it!
Why pay full price a few months later!?
9. Give the Gift Rarely Given – Give the gift of time. In reality, this should be the number one tip everyone acts on. Far too often, we end up saying “I wish I could have spent more time with them“.
It’s easy to let work, the dog, the TV, fixing the house, and a host of other random things sidetrack you from spending time with family & friends you truly care about. Remember the whole point of Thanksgiving and Christmas is to be thankful for the people around you. So fire up the old rotary phone, telegraph, email, and texting machines to start planning some special 1 on 1 time.
10. Give the Gift of Valor Advisers – Hey it’s my blog here :):)!!!
Do you know a firefighter or police officer who could use some help with their retirement planning, investments, or taxes? A professional who works only with First Responders provides unique insights into the financial lives shared by many First Responders and their families.
Seriously though, Valor Advisers offers unparalleled value for all your financial goals. I started this company because I know First Responders deserve the best financial advice available. I’ll keep working relentlessly until the day I die helping others enrich their lives. Who wouldn’t want to stop living paycheck to paycheck or realize the retirement of their dreams? It could be the gift that turns someone’s life around.
Cheers!
