Expert says July is time to 'make a list, check it twice' with early holiday saving 🎁

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MILWAUKEE (CBS 58) -- Despite the warm temperatures outside, some financial advisors say that it is not too early to start thinking about early planning to curb holiday spending's potential strain on personal finances.

One local advisor, Brad Allen with Drake & Associates, joined us to discuss following that advice on Monday, July 24.

According to Allen, more Americans are splurging on holiday shopping each year, resulting in potential financial setbacks. Notably, the previous year saw consumers spending $11.3 billion on Cyber Monday alone, a trend that could be harmful, especially amid lingering pandemic-induced financial strains. 

He proposed beginning with a detailed budget, outlining gift recipients, ideas and a spending limit for each. 

The financial advisor also noted that those lacking adequate funds now have five months to save. Cutting back on nonessential spending could help individuals save approximately $25 per week, easing holiday spending.

Negotiating gift exchanges within larger or financially strapped families is also an idea to help curb spending, advising people to draw names or focusing on children's gifts to manage costs, but make sure to discuss it early to prevent confusion or disappointment.

For retirees, Allen suggested using Required Minimum Distributions for holiday gifting. Such an approach could serve well for those who don't require their RMDs for living expenses.

For more information, visit Drake & Associates online.

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