Financial Expert Shares How to Manage Holiday Spending
By StoryStudio on October 27, 2023 11:19 AM
The holiday season is a time of joy and celebration, but it can also be a time of financial stress and overspending. One of the key strategies to ensure a smooth experience at the end of the year is setting a holiday budget.
Here to help is one of the brightest minds in the industry – Bret Hoda, Vice President of Lending for Texas Bay Credit Union. Budgeting isn’t always easy, but with the right advice, learning how to create a budget and implementing practical tips for sticking to it is something anyone can accomplish.
Start Early: Look for deals and discounts throughout the year
Search for Deals: Keep an eye out for coupons and discounts
Creating a Holiday Budget
The majority of budgeting comes down to the role of discipline and self-control. You shouldn’t be buying something if you don’t have the money for it. However, Hoda does admit this is not always realistic in all cases because you do sometimes have to use a credit card for basic needs and emergencies that arise.
After defining spending limits, Hoda strongly recommends you periodically review your financial situation to make necessary adjustments based on changing circumstances. For instance, a pay raise at work might allow you to increase your savings, or a dip in gas prices could do the same.
Also, being mindful of your budget in the long term can be fun if you keep an eye on how many extra funds you are accumulating.
“Successes help with sticking to your budget,” Hoda encourages. “When you start seeing that savings or holiday spending account grow throughout the year, you’re more inclined to contribute and make that sacrifice on frivolous spending.”
In today’s day and age, everyone can take advantage of utilizing budgeting apps to make expense tracking significantly easier. For example, Texas Bay Credit Union has several free personal finance calculators available. These are terrific planning tools for regularly updating budgets based on spending habits and financial goals.
Cutting costs during the holidays doesn’t mean sacrificing the joy of the season. Here are some strategies to help you stay within your budget!
Start Early: Look for deals and discounts throughout the year to purchase gifts and decorations, and secure travel plans at a lower cost. Sales events during various holidays throughout the year can be a great opportunity to save.
Search for Deals: Keep an eye out for coupons and discounts that can help reduce your holiday expenses. Many retailers offer special deals during the holiday season.
Avoid Impulse Purchases: This one is tricky. It’s nearly impossible to open a social media app without being targeted for products customized to your every desire. If you stay strong and picture your long-term success, it will be easier to avoid purchases you’ll quickly regret.
Utilize Credit Card Rewards: If you have a credit card with reward points, consider cashing them in for gift cards or to help with travel expenses. If you’re on the lookout, Texas Bay credit cards have a great rewards package that can help soften holiday spending.
When it comes to financial guidance and assistance, Texas Bay Credit Union stands out as a trusted partner in Greater Houston and beyond.
“We look out for our members and their financial interests and goals,” says Bret Hoda, VP of Lending. “A priority for every employee of this credit union is to improve the lives financially of our members. We take pride in that, and it’s really a great mission to deliver on that promise. Our reviews on Google prove we put our money where our mouth is.”
By choosing Texas Bay, you’re not just choosing a financial institution – you’re selecting a partner dedicated to helping you achieve your financial goals. With a special focus on community service and financial education, the team remains committed to improving the lives of all their members.
Choosing Texas Bay as Your Partner
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Cutting Costs During the Holiday Season
Credit Card Management
Proper credit card management requires a great degree of responsibility, particularly when the holidays hit. To avoid falling into the trap of accumulating excessive credit card debt that can negatively affect your credit score, you should try not to go over 30% usage of your total credit limit. Try to pay off balances promptly each month to avoid paying interest.
When using credit cards, also seek out ones with good introductory rates, balance transfer options, and rewards. For example, Texas Bay’s rates can go as low as 13.24%, which is considerably lower than those typically offered by major credit card companies, normally exceeding 20% and often going as high as 25%.
ABOUT TEXAS BAY CREDIT UNION
Founded in 1936, by Houstonians, for Houstonians, Texas Bay works tirelessly to provide the best service to their members and works to find each member a tailor-made solution to help them reach their financial dreams. Visit www.texasbaycu.org for more info, including branch locations and hours of operation.
SPONSORED BY Texas bay credit union
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Bret Hoda
Search for Deals: Keep an eye out for coupons and discounts
Start Early: Look for deals and discounts throughout the year
Avoid Impulse Purchases: Stay strong and picture your long-term success.
Utilize Rewards: If you have a credit card with reward points, consider cashing them in for gift cards or to help with travel expenses.
The holiday season is notorious for its potential to drain your finances, leaving you with a mountain of debt to start the new year. To avoid this common pitfall, reviewing the many financial details of your lifestyle is crucial and allows you to plan your spending in advance.
“Assessing your financial situation really comes down to taking a holistic look at your life and how your finances are set up,” says Bret Hoda. “Sit down and revise your budget every month or two to look at what money you have coming in and what bills must be accounted for before you go on a shopping spree.”
Hoda recommends one ideal practice, along with a second solution if it’s already too late this year.
Year-Round Planning: The best overall way to prepare for the holiday season is to budget throughout the year. Allocate funds for your non-negotiable expenses first, such as rent or mortgage, utility bills, groceries, and auto loans. Next, save a set portion of your income each month, and you can then accumulate the funds needed for gifts, travel, and festivities without straining your finances during the holidays.
Last-Minute Planning: If you haven’t had the chance to save throughout the year, it’s not too late. Start by prioritizing your essential bills, such as housing and utilities, before designating funds for holiday expenses. With careful budgeting and cutting back on non-essential spending, you can still have a memorable holiday season without breaking the bank.
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Financial Expert Shares How to Manage Holiday Spending
Creating a Holiday Budget
BRET HODA
In challenging economic times, many people find themselves burdened with debt and face difficulties in managing their finances effectively. Whether the problem is credit card debt or other piled-high balances that seem hopeless, finding strategies to consolidate debt and improve your credit score is crucial to achieving long-term financial stability. Here to walk people through solutions is Brandy Guzman, VP of Branches and Operations for Texas Bay Credit Union.
Sticking to Your Budget
One of the most effective strategies to manage multiple debts is through debt consolidation loans. Debt consolidation involves combining all your outstanding debts into one single loan with a lower interest rate, making it easier to manage and pay off.
“Generally, you want to do this for a number of reasons,” Guzman says. “Credit card rates can be upwards of 20%. When you get a good debt consolidation loan, those rates are considerably lower, especially if you're with a credit union.”
By consolidating your debts, you eliminate the stress of juggling multiple credit card payments, reduce your interest costs significantly, and can significantly improve your credit score. This not only simplifies your financial life but also helps you stay on track to become debt-free sooner.
However, when considering debt consolidation, it’s essential to carefully assess a few key details. Here’s a quick cheat sheet to avoid common mistakes:
Cutting Costs During the Holiday Season
Another effective way to consolidate high-interest debt is through balance transfers. By taking advantage of a balance transfer, you move your credit card balances from one card to another with a lower introductory interest rate – sometimes even 0% APR. This allows you to pay off your debt at a reduced interest rate for a specified period, typically 12 to 18 months.
While balance transfers can be an excellent way to save on interest, it’s important to be aware of any transfer fees and ensure that you can pay off the balance before the introductory rate expires. When you pay off your credit card balance, which increases your available credit balance, your credit score will go up too.
“It’s really important to make payments on time and keep those balances manageable,” Guzman advises. “Make a budget and a realistic repayment plan to avoid being stuck with paying back all the accrued interest after the promotional period.”
Credit Card Management
Refinancing your mortgage or auto loan can also be a viable option to consolidate debt and reduce interest rates. Keep in mind, while interest rates might be higher than they were in recent years, it’s important to remember that was an anomaly and rates are still historically lower than in past decades.
“One of the biggest eye openers for our members is looking at their credit cards and realizing their interest rates are above 20% on balances they have been carrying,” Guzman says, noting that Texas Bay doesn’t charge anything over 18%. “So if you’re thinking about using equity in your home or auto loan that was financed at 4%, even if it will increase to 6 or 7% with a consolidation loan, in some cases, it might still make sense.” It really depends on your unique financial situation and financial goals.
When you have already built equity in your home or car and need additional funds for debt consolidation, the decision to refinance should only be made after considering current market rates and how they compare to your existing loan rates.
enjoy the holidays!
Budgeting and Saving
A CD – which stands for Certificate of Deposit – is a valuable tool for meeting financial goals. Many people are unfamiliar with CDs, but they offer a great opportunity to save money even when it seems impossible. Texas Bay Credit Union provides what they call a “Save to Win CD” that allows customers to start with as little as $100 and earn a high rate on their savings.
“What’s great about it is that it gives you the opportunity to save when you think that you can’t,” Guzman says. The money is automatically deposited from your paycheck, creating an “out of sight, out of mind” savings strategy that accumulates over time.
Unlike regular savings accounts, where money can easily be transferred out, the Save to Win CD keeps the money locked in, making it easier to save. This builds a savings buffer for emergencies and future expenses, such as buying a home or handling unexpected car repairs, reducing future financial stress, and helping you meet your financial goals.
Taking control of your finances and boosting your credit score is possible with the right strategies, yet having a strong financial foundation is also essential for a more secure and prosperous future. Choosing a reliable and supportive credit union like Texas Bay can provide you with the advice needed for a smoother journey, and then you can see for yourself why their glowing Google reviews have them as the #1 rated financial institution in Houston.
“We make it our absolute mission to be our member's trusted financial partners,” Guzman says. “When you come to us, we promise to listen to what your needs and goals are and help you meet them. We’re going to celebrate with you as you achieve each goal and then move on to the next one with you. That’s definitely what you’ll experience when you choose Texas Bay.”
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Utilize Rewards: If you have a credit card with reward points, consider cashing them in for gift cards or to help with travel expenses.
Avoid Impulse Purchases: Stay strong and picture your long-term success.
SPONSORED By TEXAS BAY CREDIT UNION
enjoy the holidays!
Remember that financial planning is a year-round endeavor, and a well-prepared budget can make the difference between holiday cheer and post-holiday stress. With the right budgeting, self-discipline, and the support of financial institutions like Texas Bay Credit Union, you can enjoy the holidays without compromising your financial well-being. If you would like to speak with an advisor to help with any of your holiday expense planning, don’t hesitate to reach out!
Utilize Credit Card Rewards: If you have a credit card with reward points, consider cashing them in for gift cards or to help with travel expenses. If you’re on the lookout, Texas Bay credit cards have a great rewards package that can help soften holiday spending.
Sticking to Your Budget
Choosing Texas Bay as Your Partner
Proper credit card management requires a great degree of responsibility, particularly when the holidays hit. To avoid falling into the trap of accumulating excessive credit card debt that can negatively affect your credit score, you should try not to go over 30% usage of your total credit limit. Try to pay off balances promptly each month to avoid paying interest.
When using credit cards, also seek out ones with good introductory rates, balance transfer options, and rewards. For example, Texas Bay’s rates can go as low as 13.24%, which is considerably lower than those typically offered by major credit card companies, normally exceeding 20% and often going as high as 25%.