9 Best Ways to Save Money During the Holiday Season

‘Tis the season to start trimming – your budget, that is, and not just your tree.

A November 2013 Gallup poll found that while the average American originally expected to spend around $786 on the holidays back in October, that number is now down to $704. While it’s true that the general public might have a little less to spend, that reduction is also indicative of the changing mindset of spending as a whole. Consumers with big eyes are now wary of a volatile market and, consequently, of putting too much of the holiday season on plastic. This means more restricted budgets.

By saving and spending wisely, your holiday season doesn’t have to be a total budget-buster. Follow the lead of the average American and try trimming your expenditures without sacrificing any of the holiday experience.

Spending and Saving During the Holidays

Before you hit the mall or organize a big party, it can help to have a comprehensive plan in place so you know exactly where your money is going this holiday season – that way, you can ring in the new year with celebration rather than panic. Here are several ways to keep your spending under control this December.

How and Why to Start an Emergency Fund

“Pay off your debt.” “Max out your IRA.” “Buy a house.” “Get a new job.” Personal finance advisers bombard us with a litany of things we ought to do in order to achieve financial independence. It’s overwhelming. Where’s a person to start?

Most personal finance books agree: The first thing you should do — after meeting basic needs, and while reducing spending — is to start an emergency fund.

What is an emergency fund?

An emergency fund is an easily accessible stash of money for use only in case of emergency. It is not to be used to buy a new car. It is not to be used to buy a new PlayStation. It is not to be used to remodel your bathroom. It is for use only in case of emergency.

Why do you need an emergency fund?

It may seem like a silly question, but some really do want to understand why they need an emergency fund. Here are some real-life emergencies that have happened recently to people I know:

10 Tips to Save for a Downpayment

1. Negotiate your rent: Have you looked at your spending cloud lately? If your like most – RENT is the biggest and most annoying expense in your budget so why not try to negotiate the rent?Landlords may be willing to give you a break if you are a good tenant and they like you. Giving you a break on rent is much less then the amount lost in vacancy. If that doesn't work, consider downsizing and pocket the difference for your downpayment. For serious savers consider a roommate or even moving back home.
   
2. Shop around to reduce major monthly expenses: How long has it been since you looked around for a different insurance, cable, Internet or phone provider. This could save you hundreds per month. While your at it, ask yourself if you really need to have those expenses and consider cutting them completely.
   
3. Sell your assets: Since we are on the topic of expenses this fits in nicely. Assets like your car are expensive and act as a liability when applying for a mortgage. Consider downsizing or selling. Do you really need a $40,000 car? or whatever the amount maybe. And yes, do save the difference for your new home.
   
4. Pick up part-time work: Getting a side job is a great way to earn more for your downpayment. Use that money exclusively for your downpayment.