Tips for Smart Holiday Spending

By Lis McNealey Davies 
Owner, Financial Advisor, CDFA®

Tips for smart holiday spending

By Lis McNealey Davies
Owner, Financial Advisor, CDFA®

It’s almost that time of year when gift-giving is at the forefront of our minds. Having some financial guardrails in place can keep your focus on giving to others without the burden of debt to start the New Year. Here are a few of my suggestions:

Create a Holiday Budget
It can be easy to lose track of your holiday spending, with the ease of online shopping and next day delivery of last minute items. There are no firm rules on the size of your budget, but the amount should fall within the range of what you can reasonably afford without going into debt. Once you have a budget in place, it will help you with decision making throughout the season.

Create a Holiday Gift List
Once you have your overall budget in place, creating a list of those friends and family you are planning to buy for and setting a budget for each person can help keep your spending within your means. This will discourage overspending on individual purchases and can help stretch your budget even further.

Shop the Sales
Doing a quick online search for the best price on an item is always a good idea this time of year. Often there are coupon codes or better sale prices available through other retailers or websites. You may be surprised how much you can save with a few extra minutes of effort.

Give to Charity
If you want to add a favorite charity or organization to your gift list, tax benefits may be available to you by making the donation before the end of the year. For example, if your IRA distribution qualifies for a Qualified Charitable donation, then your RMD (required minimum distribution) can be donated to a charity of your choice. A donor-advised fund is another way to maximize this benefit and here are several other giving ideas to consider.

Your holiday spending should be something you plan for in your budget each year. This can reduce stress and increase joy during the holidays. If you need help deciding how much to spend on your naughty and nice list this year or setting up a donor-advised fund, give our team a call!

Lis McNealey Davies is owner of The Arlington Group Investment Consulting. A true leader in the female focused financial advisory niche, Lis builds upon the groups’ strong foundation and core offerings to drive growth and champion the group as an emerging advisory company in the divorce, widowed and life transition niches. As a previous divorcee and mom to three wonderful daughters, Lis understands firsthand the importance of financial confidence.
The Arlington Group Investment Consulting, LLC is a separate entity from WFAFN.The use of the CDFA® designation does not permit Wells Fargo Advisors or its Financial Advisors to provide legal advice, nor is it meant to imply that the firm or its associates are acting as experts in this field. Wells Fargo Advisors Financial Network is not a tax or legal advisor. Be sure to consult with your own tax and legal advisors before taking any action that may have tax or legal consequences.