Now that the holiday season is here and it’s time to start buying presents, you’re probably looking at your budget and wondering where to find the money. Instead of looking to credit cards to pay for all those parties, gifts and family outings, follow these tips to save money year-round:
* Prioritize your spending. After paying monthly expenses like mortgage or rent and utilities, make sure you pay your future self. Think retirement and your children’s college.
* Plan for the worst: Make sure you have an emergency savings account to cover up to 6 months of expenses. And don’t forget life insurance. According to one study, 40 percent of adults in the United States don’t have life insurance and 25 percent of widows and widowers say their deceased spouses didn’t have enough life insurance .
* Make sure you track your actual expenses to see if you are getting closer or further away from your goals. That will also help you plan for unexpected expenses — an impromptu getaway or broken down car. Even though those expenses are unplanned, you will see they are predictable when you look at your budget.