November 22nd, 2010
Monday Jumpstart to Personal Finance & Credit News
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It’s going to be a bipolar holiday sales season, reports Bloomberg Businessweek.
Industry analysts, looked to to predict the shopping habits and spending stats at this time of year, predict a mix of spending trends this holiday season. Luxury retailers will experience a boom of sales at the register, while mass-market retailers will barely make bottom line profits like they used to in past years.
The spending forecast highlights a growing gap between American consumers, with luxury consumers–high-income Americans who held on to their jobs and reduced debt over the recession–charging forward with full-price luxury goods to the registers, and frugal-minded Americans–middle-class Americans who are anxious about job security and tightening their household budgets–looking for bargains and steals at the mall.
According to Businessweek, respondents with household incomes of less than $50,000 said they’d spend an average of $490.33 this season, down 1.2 percent from last year. Those with household incomes of $50,000 or more said they’d spend 2.9 percent more than in 2009, an average of $942.12.
The Guccis, D&Gs, and Nordstroms of the retail world are upping their inventory in preparation for this spending season, pricing “low-end” goods at $1,000+ and “high-end” goods in the $10,000 to the $100,000 range. On the other side of the coin, the JC Penny’s, Best Buys, and Wal-Marts of retail are slashing prices, offering impressive deals, and trying to coax out their core customers, those in the middle of the economy who are economically constrained, for conservative spending sprees.
Read more of our favorite personal finance and credit news and blogs, like 60 Reasons Why Personal Finance is So Damn Hard and How to Keep Your Identity–and Your Credit–Safe While Shopping, on today’s holiday-inspired roundup!
Personal Finance News
- Reason: #9: We think that little expenses won’t add up to much of anything.
- Catch all 60 Reasons Why Personal Finance is So Damn Hard at Fiscal Fizzle.
- Bottomline: We undoubtedly lose a bit of sanity, self-control, or both when it comes to holiday spending… The key, however, is not to spend it out of desperation, impulse shopping, or simply because you don’t have a plan.
- Prepare for the holidays with Money Blue Book blog’s How to Survive the Holidays Without Wiping Out Your Savings Account.
- Quote: “This past spring, I made a huge investment in my happiness. I left my secure corporate job to pursue my interests in travel, web design and personal growth. My entire year off would be funded from hard-earned personal savings.”
- Read the whole inspiring story, How Much Does A Year of Happiness Cost?, at Million Dollar Journey.
- Tip: Win the Grocery Game – As of fall 2010, financial experts are extremely concerned about significant inflation. While you can easily cut back on incidental expenses, you still have to eat. Putting your $1,000 into long-term food storage could be one smart move if things keep going downhill.
- Frugal Dad blog shares 10 Ways to Invest $1,000 Dollars, Without Putting a Dime in the Stock Market.
- Quote: “Next time you see an expensive car, an odd behavior, or a poodle with a tiara–instead of getting mad, just tell yourself “there’s a reason behind that choice,” and be at peace with your judgment.”
- Financial Samurai delivers a fresh post with an interesting point in, Who Are You To Tell Me It’s Not Worth The Money?
Credit Report & Credit Scores News
- Tip: Know your credit score. Before you do anything, it’s important to know what your credit score range is. As you’ll see in a minute, you have a variety of options when it comes to small business loans. Your score means different things to different lenders.
- Wealth Pilgrim suggests smart options in 3 Ways To Get Cheap Small Business Loans Even If You Have Bad Credit.
- Quote: “But what isn’t as widely known is that increasing your credit score has diminishing marginal returns. Beyond a certain point, it simply doesn’t matter if you nudge that score any higher.”
- What credit score should you be striving for? Read DoughRoller’s Your Credit Score: When Good Enough Will Do.
- Tip: First, shred any and all documents that have any of your personal information on them. This includes credit card receipts, bank statements, and even less obvious items such as envelopes and junk mail containing your name and address.
- Don’t miss this important aspect of holiday shopping, brought to you by Saving to Invest, on How to Keep Your Identity–and Your Credit–Safe While Shopping.
- Bottomline: If you’ve been through a foreclosure, you may wonder if there is hope for you to become a homeowner again. Yes, but it will take awhile.
- Read The Dallas Morning News’ report on Recovering from foreclosure takes time, so use it to rebuild credit.
- Tip: Use it or lose it. Issuers may close an account that is seldom used or lower the credit limit.
- Want to keep your credit score sky-high? Bankrate.com suggests 3 Ways To Maintain A High Credit Score.