If you’re planning to buy a home in the future, the holidays can make it tough to keep your goals on track. According to American Research Group, Inc., U.S. consumers plan to spend an average of $983 on holiday gifts in 2017!
Add in the cost of travel and holiday meals, and the most wonderful time of the year costs a bundle!
We’re not suggesting you become a Scrooge and deny yourself the joy of the season. But the only way to keep some jingle in your pocket is to set some boundaries. You’ll thank yourself in January!
Use these holiday budget tips to get started:
1. Set a limit for your total holiday spending, including gifts, travel, holiday parties, cards, package shipping and holiday meals. Set a limit for each category.
2. Impose a dollar limit on family gifts. Or, consider drawing names instead of everyone buying gifts for everyone else.
3. If you are planning to buy a home soon, and you have friends and family willing to offer cash gifts towards your goal, open a separate account for these deposits. Make sure your contributors write checks and keep records of them! Your mortgage lender will require paper trails in order to allow the cash gifts as a down payment.
4. If you’re flying during the holiday season, avoid booking a flight for the Friday before Christmas. It’s among the busiest, and most expensive, travel days of the year! The least expensive flights tend to operate on Tuesdays and Sundays. “Red-eye” flights that operate late evenings and early mornings are cheaper than business-hour travel times.
5. Avoid opening new department store credit cards. Store clerks push these at the register, and they may tempt you with an immediate discount on your purchase. However, opening new charge accounts can actually lower your credit score. Monthly debt payments also affect your debt-to-income ratio, which is calculated by lenders to determine the mortgage you can afford.
6. Mail your packages early to keep shipping costs down. Ground shipping rates are cheapest, but slowest. Make sure your recipients will be home when packages are delivered. Or, ship them to an alternate location where they can be safely held and picked up later. Package theft is on the rise – take precautions!
7. Prepare for next year! Set money aside each payday towards next year’s holiday season. Consider opening a separate “holiday account” at your bank and make small, consistent direct deposits. Just $10 a week, over the course of 45 weeks, is $450!
If buying a home is on your wish list, gift yourself with our free e-book, “How to Buy a Home like a Pro!” It contains home buying information you won’t find from typical real estate agents!
As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
