Lists & Tip Sheets
Five Tips for Budgeting During the Winter and Holidays
Five Tips for Budgeting During the Winter and Holidays
Sticking to a budget is a challenge that can be particularly difficult as the holidays loom, the weather gets cooler and the days shorter. Finances may be the last thing on your mind during the chaos of the season, but there are ways to keep your budget on track. Suzanna de Baca, vice president of wealth strategies at Ameriprise Financial, shares the following tips for managing your finances during the winter months.
- Dine smart. Whether you’re enjoying a family meal at home or dining out, be sure to monitor your spending. Though it may be convenient to eat out, it is often more expensive (and less nutritious), so consider setting a price cap before you skim the menu. You may also want to develop a menu plan for meals you eat home. Doing so can help you determine how much your groceries should cost on a weekly basis and help you stay within your budget.
- Be realistic with holiday shopping. The holidays become an expensive time of year when you have a long “to buy for” list. Include gifts when you develop your monthly or yearly budget and set spending guidelines for individuals and groups on your list. It’s important to be honest with yourself and your friends and family. If you need to spend less this year than past years, don’t hesitate to prioritize certain gift recipients and halt or limit gift exchange with others.
- Turn the heat down. If you live in a cold climate, heating your home often requires extra cash during the winter. Avoid the pinch on your wallet by remembering to budget for higher energy bills or by setting a little extra money aside each month during the remainder of the year. Consider an energy efficiency check-up on your home to identify any areas where you may be losing heat. Setting your thermostat just a few degrees cooler can also help reduce your energy bill.
- Be resourceful. Due to the lack of sunlight, winter days can feel like some of the longest. Be resourceful when you’re seeking out entertainment to fill the long nights and weekends. Use websites like Groupon and Living Social to find coupons, and take advantage of special deals that restaurants and theaters often offer on certain days of the week. Also consider using cash instead of a credit card when it comes to your entertainment budget. This habit makes it harder to overspend.
- Prepare. It’s beneficial to prepare yourself year-round for the financial demands that accompany the winter months. If you’ve overspent in the past, closely track your spending this season so you can more accurately budget for next year. Still can’t seem to stay on track? Consider working with a financial advisor who can help you establish a budget, stick to it and feel better prepared you for years to come.
- # # # -
Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients.
© 2011 Ameriprise Financial, Inc. All rights reserved.
