Three effective saving tips for the end of this holiday season

The best financial advice covering winter heating savings to a reasonable budget for holiday expenses

15:04 30 December 2014

End of year saving tips for retirement

Before ushering in the New Year, all retirement savers should check their things to do list. People who have already retired should ensure that they take the minimum distribution on all accounts beginning at the age of 70. If you get the distribution wrong, it will result in 50% tax and interest on any withdrawals that you fail to make use of. If you are close to retirement, transfer your yearly payment to a pot where your savings after taxation will accumulate tax free. Most importantly, increase the amount you save for pension in 2015. An early start will help you secure your future.

Creating a reasonable budget to control your holiday spending

Do not go beyond your budget limit over the holiday and get stuck eating noodles for a few weeks in January. Normally, consumers tend to overspend over the holidays with more than a third of buyers going past their budget limits. In this regard, list all your expenses before hand to stay on top of your spending from food expenses to family parties and gift. Be creative and economical at the same time. Send gifts such as pastries or knitted scarves that may take time to prepare but help you save money. More so, do not buy gifts for people who you did not include in your list.

Avoid gift cards during shopping

If you plan to shop a lot at once and keep stock, avoid temptations from gift cards.  They might be safer but they have many disadvantages. For instance, they might charge high dormancy and purchasing fees. They are not like credit and debit card options where you can be compensated in case of disputes or fraud, damage or other forms of errors. If you cannot give people traditional gifts, offer some little cash or check because they can be used in any location.

With gift cards, a good once purchased cannot be returned. Additionally, if the card’s retailer goes bust or decides to charge you a lot, your plastic money might be valueless.