Financial expert: Plan ahead to prepare your budget for holiday spending

NEW YORK -- As the holidays inch closer, financial experts say just a few simple changes in your day-to-day life could help you save hundreds of dollars.

With rising inflation and unsteady unemployment, the earlier you prepare your finances for the holiday season, the better. To understand the bigger picture, CBS New York's Elijah Westbrook sat down with Tom O'Connell, president of International Financial Advisory Group, Inc., about what everyone can do right now.

"Having a really good idea of what's affordable for you, especially in these economic times with high inflation, higher prices, is really the foundational piece of making sure you can have a successful, fun, joyous holiday season," said O'Connell.

A recent study from Trust Pilot, a consumer analytic business, shows that two-in-five Americans are considering cutting back on essentials, such as food and gas in order to prepare their holiday budgets. But O'Connell suggests taking it a step further and making your list early so you can save your wallet in the long run.

"Thinking ahead. Thinking and creating that plan, whether it's a written down plan, whether it's a plan in your head," said O'Connell. "Just realize you don't need to go into debt to have a really good holiday."

O'Connell and other experts say it's always best to do a self-check on your spending habits and on your budget. Plus, it's important you take the time to shop around and see what deals are beneficial for your wallet.

"Try to pull back on some of the impulses, that's probably one of the biggest mistakes. And the other one is utilizing a credit card like it's a debit card or cash. People forget that at some point, that bill has to be paid, the banks want their money, and they want their 28-29% to go along with it," said O'Connell.

Finally, this might be a good time to take a close look at your overall credit to help you beware of what lenders can see.