Retired people may face A different-looking holiday this year, including changes that include canceled trips or small gatherings. These changes can also have a financial impact. For retirees on a fixed income, it can be helpful to establish a financial strategy that aligns with leisure activities in 2020.
Here’s how to manage holiday expenses and avoid financial messes:
- Rethink your budget.
- Set the amount for the gift.
- Evaluate holiday meals.
- Shift to Travel Funds.
- Find ways to save.
- Monitor credit card fees.
- Take advantage of additional sales.
Rethink your budget
If you had a place for the holidays, it might be a good idea to revisit it. Some items may need to be changed or Has been removed from your budget Based on adjustments in plans and activities. “If you don’t have the budget, now is a great time to make one,” says Lauren Wyber, a senior financial advisor at The Vanguard Group in Philadelphia. “A good starting point is to develop an itemized list of all your expenses.” You can set up financial buckets for the holidays, such as special events, donations, decorations and gifts for family and friends. “Determine whether these expenses are necessary or discretionary, and if you’re comfortable looking at your savings and retirement income,” Vyber says.
Set to gift
Your gift list may be longer or shorter than last year. For example, if you are not seeing some family members on holidays, then you can decide to give them Extra gift. At the same time, if finances are tight, you cannot plan to buy as many gifts as you have in the past. “Setting spending limits on each gift is a great way to keep your budget up,” says Chuck Kadzaka, founder of Macro Money Concepts in Stuart, Florida. If you plan to give a gift instead of an in-person gift, you will want to include the cost of shipping in your overall gift budget.
Rate the Holiday Mile
If you usually have children and grandchildren for special dinners during the holidays, you may decide to cancel the meal this year. Tanya Peterson, vice president of the brand of Freedom Financial Network in San Mateo, California, says, “If you’re thinking about one, two or four – versus your usual 10 – think very carefully about what you’ll actually eat. ” “There is no need to buy and cook for dinner unless you are not intent on leftovers to freeze, to be used for you.” If you want to make turkey or large ham, you can roast it before any special meal and divide the cooked meat into smaller packages that you keep in the freezer. “Then during the holiday season you need a variety of meals,” says Peterson.
If you buy an airplane ticket to fly in December, but decide to stay home and do not use the ticket, check with the airline to see about reimbursement. You may receive credit for flying towards the future. If you were planning to drive See grandson, Consider the budget you have set for the trip. This may include money to spend on gas, food and hotel stay. You can decide to save funds and take them towards the upcoming journey.
You can also consider using travel money differently. “Retired people who are not traveling for the holidays can find themselves in their budget with some extra cash that they can dedicate to a non-traditional gift for their grandchildren, like a college savings account , ”Says Jeremy Gov, a financial planner at Stonebridge. Insurance and Money Management in Kearney, Nebraska.
See how to save
If you usually host a big New Year’s Eve at your home, you may decide not to keep one due to an epidemic this year. Change means you can Extra money Food and decorations for the party are not spent. “Canceled vacation plans mean an opportunity to save money, which is usually spent at this time of year,” says Nicole Schnallon, managing director of family funds at the Olsen Wealth Group in Minopolis, Minnesota. You can decide to keep the funds in one account and use them for domestic improvement or a meeting in the coming year.
Spending extra time at home, maybe Free activities That you can do with the people in your household. You can pull out a puzzle, play a board game or view a photo album. “People who want to get out can do it in such a way that nothing costs by walking, cross country skiing, or sitting around the bonfires,” Scanlon says.
Monitor credit card fees
When moving plans, it can be more difficult to pay attention to how the money is spent. For this reason, focusing on using a debit card or cash can make it easier to track money. “Try not to use a credit card until you can pay the balance by the next billing cycle,” Czajka says. “The last thing you want to do is to spend 2021, paying for the 2020 holiday season.”
Take advantage of extra sales
Many retailers are moving away from a Black Friday sale to draw large crowds. Some shops are giving in return Online deals Or in-store discounts that are valid for the entire month of November and also in December. “Givers says they have extra time to plan their shopping lists and see the best sales to fit their budget.” This stretch can help move the dollar or enable you to buy a gift with a higher price for a lower price.