
Holiday Gift Guide:
As 2020 rolls on, many households have changed how they spend and save. That might include upcoming holiday spending as well.
How you manage your holiday expenses can be a window into how you manage your overall financial plan. Want to start fresh in 2021? Give yourself the gift of a budget.
Even if you don't usually budget for the holidays, start tracking your spending while it's still fresh in your mind. As you plan your purchases, the extra oversight might help you avoid loading up credit cards or dipping into your savings.
When you're done with your gift giving, entertaining and holiday-related traveling, take the time to record and evaluate your spending, even if it's just an estimate. Was it too much? Will it affect any planned purchases or regular expenses next year? How about your existing saving and investing plan—would you have done anything differently?
Then, consider how a budget—for next year’s holidays and your overall finances—might give you a different perspective on spending.
Budgeting is the foundation for financial planning. It's the primary way you can affect your own financial success. You can't control the financial markets, but you do control how much you spend, and how much you save.
Each dollar you save today has the chance to grow and compound over time. We're not suggesting canceling your gift-giving traditions! A gift here and there won't make much of a difference, just like daily fluctuations in the financial markets won't ruin your future.
But your total spending and saving patterns will set you up for financial success—or financial stress.
First, it's important to know what you're budgeting for—short-term goals like holiday spending or far-off goals like retirement or college. Our Future Value Calculator can help you determine how much to set aside for a long-term goal, and our other retirement tools dive into more specifics as you approach retirement.
Armed with a clear vision of your goals and an estimate of the amount you'll need, examine your everyday finances.
We generally believe clients should have three to six months' worth of emergency savings in a bank account or other relatively low-risk account. There are a number of ways to boost your emergency fund.
Investing, rather than saving, has the potential to grow your money over time, at a greater rate than a bank savings account. But it also involves the risk that your investments will decrease in value during market fluctuations.
Need help getting started? Contact us, or find out more about investing for any goal.
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The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.
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