State Treasurer Dean Martin offers tips on smart holiday financial management & avoiding debt as the upcoming holiday season approaches.
1. Make a budget and stick to it.
· Place a spending limit for each person on your list.
· Keep in mind even the small expenses associated with the holidays, including postage, entertaining, & gas prices!
2. Avoid the emotion explosion.
· It’s only natural to want to shower your loved ones – especially the little ones – with gifts to show them how much you care - but this will bust your budget with overspending.
· Quality over quantity; avoid the impulse purchases.
· How many parents spend $100 on a gadget only to watch the kids play with the $1 box it came in?
3. Increase your income before increasing your spending.
· Retail outlets hire more part-time positions during this time of year.
· Consider taking up a part-time job to increase your income & meet your spending needs & wishes.
4. Don’t Procrastinate.
· Putting off holiday shopping may force you to break your budget as you will buy anything - & everything - at the last moment.
· You could wind up paying more in shipping costs than the gift itself!
5. Pay cash –“No Payments, No Interest” can be a problem.
· Avoid credit card purchases unless you know you can pay off the full balance of your bill when all holiday shopping is completed.
· Stay away from buying into deferred payment plans, unless you are confident you can pay the purchase off before the deadline.
6. Don’t open new credit.
· Many retail & department stores offer discounts when you open a new credit card, but the one-time-only discount may not be worth having another credit card on your credit rating.
7. Pass on extended warranties.
· The cost of a repair or replacement over time may be the same as buying an extended warranty plan.
8. Open a holiday savings account.
· Set up a separate savings account just for your holiday shopping so it can accrue interest during the year.
· Make a small deposit into it each month, & you’ll be surprised how much “extra” money you have for the holidays next year!
9. Pay your bills on time!
· This is the best gift you can give yourself for the holidays & all year round.
· If you are late on payments, your interest rate – & future payments - might go up.
· When you miss just one payment, regardless of the dollar amount, it takes 24 months to restore your credit.
10. Get a FREE credit report.
· The info on this report determines the interest rates that credit card companies will charge!
· Visit annualcreditreport.com to request a FREE credit report once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian & TransUnion.
· Make sure you haven’t been a victim of identity theft & that your info is correct.
Treasurer Martin manages more than $12 billion in fixed income & equity investments, including Local Government Investment Pools & State Land Trust Endowment Funds. Last fiscal year, the Treasurer’s Office made taxpayers over $730 million dollars. During the 1st quarter of this fiscal year, the Treasurer’s Office distributed earnings for taxpayers of $143 million, a 32.6% increase over the same period last year under the previous administration.
As a statewide constitutional officer, Treasurer Martin serves as the state’s Chief Financial Officer, 3rd in line of succession to the Governor, responsible for the prudent custody & management of taxpayer monies.