Shop Smart During the Holidays

Below are eight tips on how to shop confident. Eight tips to help consumers come back with confidence1. Know yourself and know your risk tolerance ? Because money is an emotional subject and emotions can often lead to rash decisions, knowing your attitude toward risk is key. 2. Develop a plan and stick to it ? Develop a long-term, holistic strategy for investing and saving. Consider how to diversify your portfolio using an appropriate asset allocation among various investment vehicles. 3. Know when to hit the rebalance button ? Rebalancing is part of prudent portfolio management and maintenance. Reassess your portfolio every few months to see if it?s performing the way you would like or if it?s time to make some changes. 4. Maximize retirement savings ? Employers with 401(k)s or similar retirement savings plans are essentially paying their employees to save. If you are not contributing up to your company?s maximum match, you?re leaving money on the table. 5. Educate yourself ? Seek out smart budgeting and savings guidance, and study the economy and stock market to better understand how they work 6. Recovering from market losses takes time ? Know that smart, long-term investing takes time, and understand that while rebuilding a portfolio?s value there will be more losses and gains along the way. 7. Frugal is the new black ? In the new era of frugality it is ever more important to practice good budgeting and financial planning habits. Useful tools are often available free of charge from many financial institutions or on many Web sites. 8. Save for the right home ?The general rule is to pay no more than 28 percent of your gross income on principal, interest, property taxes and insurance. Tools and calculators are available to help guide buyers.