Zoe Financial Helps Manage Holiday Spending

NEW YORK, Nov. 18, 2020 /PRNewswire/ -- The National Retail Federation estimates American consumers plan to spend $997.79 this upcoming holiday season. As much wonder as the holiday season can bring, it is also a big stressor on people's financial lives. When people overspend, for example, it can bring far more worry than joy. Having a financial advisor on one's team year-round can help manage holiday spending. By creating a holiday spending plan as part of one's wider financial plan, it's easy to save enough money during the year so the holidays can be a worry-free expense. 

When it comes to the holidays, Americans are the world's biggest spenders. According to PwC, with COVID-19, only a little more than half (55%) of consumers have reported they will spend the same or more as they did last year. Additionally, over half have confronted pandemic-altering income levels. With that in mind, it is important to be smart about managing one's money. So, how to optimize holiday spending? Here are four tips. 

1. Set a Holiday Budget

Begin by going over potential expenses. List all expected holiday expenditures, such as gifts, travel, parties, decorations, cards, and charitable donations. By doing so, one can have more clarity on potential spending limits. Once one has a stipulated limit, allocate specific amounts to a corresponding category or item. Then, narrow down shopping options by choosing only items for those amounts. Online shopping is a good way to stick to a more limited shopping list. Plus, it creates the opportunity to take advantage of big sales and save. 

2. Keep Track of Expenses

Managing a holiday budget doesn't stop once it is spent. Begin by actively tracking purchases. This ensures sticking to one's budget. If needed, make modifications to adjust expenses so that they are in check for future holiday expenses. By starting to save at the beginning of the year and keeping track of expenses, it's easier to put aside money every month. 

3. Plan Ahead for Holiday Spending

A wealth manager is especially helpful in keeping their clients on track with a plan for holiday spending. By looking over past expenses with an expert eye, it may become easier to identify things one might have overlooked in the past. Similarly, working with a wealth manager involves setting realistic expectations from the start about short- and long-term financial goals. Having a wealth manager onboard can make seemingly distant gifts and expenses far more possible financially. 

With 42 percent of consumers starting their shopping in November, it is important to account for expected expenses. That said, it's also about knowing one's own spending habits. Letting a wealth manager know about a spontaneous or big spender nature is essential. They will know to set some money aside and plan for decisions like a last-minute lavish trip. 

This year has likely made planning ahead a little difficult. In fact, one in five holiday shoppers reported they will stay home this year instead of traveling as they usually do. If this is the case, a wealth manager would be able to help relocate travel funds to another purpose, such as contributing to a retirement fund. The bottom line is they will know how to optimize this extra money to enhance their client's financial plan long term. 

4. Build Better Spending Habits

Over time, optimizing holiday spending is about building better spending habits. This might mean opening a special savings account that cannot be accessed throughout the year just for this time of the year. By making small changes to needless expenses, it can be easier to build a holiday budget. 

A wealth manager can factor in holiday spending over the years to better manage their client's finances. They can consider it when advising on a yearly budget, particularly making sure it doesn't come as a big hit by the time the holidays come around. Similarly, they can make changes if their client isn't meeting intended short-term saving goals. 

So if, say, one spends $1,000 every year, that is $25,000 over 25 years. Investing that with an average 7% return, would result in having an additional $68,676.47 in one's portfolio. A wealth manager can help manage the money so their client can better organize how much to allocate for holiday spending, as well as how much should be allocated to grow their wealth. 

The end of the holiday season also means a new year. It makes sense for it to be a time when one also evaluates how they are managing their money for the start of the new year. A wealth manager, such as those within Zoe Financial's network, will make sure to understand their client's unique financial situation, help set priorities, create a budget, save for retirement and other life goals, and have an emergency fund. 

Using a wealth manager year-round means having a holiday spending plan that is incorporated into one's broader financial plan. Ultimately, the goal is to build a budget for the whole year that aligns with both holiday spending wishes and financial goals. 

About Zoe Financial

Zoe Financial understands that each client has a different financial situation. This is why fiduciary financial advisors in Zoe's Advisor Network never create generic plans for their clients. A noteworthy aspect of Zoe's advisor vetting process is an in-depth review of the types of plans advisors often create for their clients. In fact, Zoe Financial rejects 95% of advisors who are unable to build holistic and thoughtful financial plans.

Zoe Network Advisors take the time to understand what their clients' needs are, what their current financial situation is, and what their financial goals are. Individuals can feel confident that their financial plan is right for them when all of this information is taken into consideration. Additionally, Zoe Financial works hard to match their clients with the right advisor. 

Not only do they hire the top 5% of fiduciary financial advisors, but they also pair their clients with advisors with similar experiences. All the client has to do is fill out a short form and Zoe's algorithm will choose the top three advisors that are best equipped to assist them. From there, they can interview the financial advisor to confirm that it's a good fit. By hiring the right financial advisor, the client has completed the first step in making a financial plan that's right for them.

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SOURCE Zoe Financial