Holiday Shopping
OK, you have been doing well all year, sticking to your monthly budget, saving a portion of your income every month, and tracking your expenses, right? But here comes Christmas and a great opportunity to undo the progress you have made all year. Don’t fall into one of the traps set by retailers. Now, I’ll admit, I have never been much of a holiday shopper. I have even been accused of being a Grinch. Don’t get me wrong, I love Christmas, I just don’t like shopping. If you are one of those who do like shopping and want to get the most out of it without wrecking your financial plan, try these tips [read full article]
1. Set a target. How much can you afford to spend? If you have been saving a little each month, you are probably in good shape. Avoid using credit cards at all cost, that goes for “special financing” arranged at the store too, “No payments til June 2010”, “Interest only for a year”, etc. These almost always have a trap somewhere and end up costing you more in the long run.
2. Make a list and stick to it. Write down everyone you want to buy a gift for along with a gift idea and estimated cost, and add up all the costs. If the total is more than what you came up with above, go through and either cut back some of the people on the list, or buy them smaller gifts.
3. Keep the list with you and mark people off as you find their gift. Using the list will also help keep you from getting sucked in by many of the fantastic sale items that may be a great deal, but you just don’t need.
4. Shop around. Start online; many retailers will have special pricing on line. You can also get a feel for what major items cost (TV, electronics, etc) before walking into the store. You can find out in advance what is in stock, get to the store, make your purchase and get out, avoiding purchasing random sale items. If you purchase online, make sure you read the fine print on return/exchange policies, i.e. some retail locations won’t take product back that you purchased on their own website, so you (or the recipient) have to pay shipping (again)
5. Take advantage of free wrapping at the stores, and ask for gift boxes wherever you go. Avoid those decorative gift bags that, while convenient, tend to be very expensive compared to wrapping. Bus plain paper and have the kids draw pictures on it.
6. Use your imagination – Not all gifts need to be bought in a store. Most people like receiving gifts with a little personalization. My wife makes a great dry soup mix, packages it in a mason jar and ties a ribbon on it. It makes a great teacher gift or hostess gift for holiday parties. http://allrecipes.com/recipe/country-soup-in-a-jar/detail.aspx. Myself, I prefer beer. It takes a bit longer (about 4-6 weeks to brew, bottle and carbonate), and we print a special label on the computer and give to our friends. There was some up front cost to purchase the brewing equipment (less than $100), but I have been using it for 15 years. The cost of materials works out to less than a buck per bottle. http://www.winemakersshop.com/kit.php.
7. If you have difficulty this year keeping things under your spending limit, consider opening a separate savings account for Christmas, perhaps with a separate debit card. This will make purchasing easier, and you will be less likely to go wander off your list and spend household money on extra gifts.
The bottom line is plan ahead, and stick to the plan. Advertised “deals” are everywhere. Use them if it is for an item on your list and it saves you money. Avoid them like the plague if the item is not on your list or it comes with strings attached.
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1. Set a target. How much can you afford to spend? If you have been saving a little each month, you are probably in good shape. Avoid using credit cards at all cost, that goes for “special financing” arranged at the store too, “No payments til June 2010”, “Interest only for a year”, etc. These almost always have a trap somewhere and end up costing you more in the long run.
2. Make a list and stick to it. Write down everyone you want to buy a gift for along with a gift idea and estimated cost, and add up all the costs. If the total is more than what you came up with above, go through and either cut back some of the people on the list, or buy them smaller gifts.
3. Keep the list with you and mark people off as you find their gift. Using the list will also help keep you from getting sucked in by many of the fantastic sale items that may be a great deal, but you just don’t need.
4. Shop around. Start online; many retailers will have special pricing on line. You can also get a feel for what major items cost (TV, electronics, etc) before walking into the store. You can find out in advance what is in stock, get to the store, make your purchase and get out, avoiding purchasing random sale items. If you purchase online, make sure you read the fine print on return/exchange policies, i.e. some retail locations won’t take product back that you purchased on their own website, so you (or the recipient) have to pay shipping (again)
5. Take advantage of free wrapping at the stores, and ask for gift boxes wherever you go. Avoid those decorative gift bags that, while convenient, tend to be very expensive compared to wrapping. Bus plain paper and have the kids draw pictures on it.
6. Use your imagination – Not all gifts need to be bought in a store. Most people like receiving gifts with a little personalization. My wife makes a great dry soup mix, packages it in a mason jar and ties a ribbon on it. It makes a great teacher gift or hostess gift for holiday parties. http://allrecipes.com/recipe/country-soup-in-a-jar/detail.aspx. Myself, I prefer beer. It takes a bit longer (about 4-6 weeks to brew, bottle and carbonate), and we print a special label on the computer and give to our friends. There was some up front cost to purchase the brewing equipment (less than $100), but I have been using it for 15 years. The cost of materials works out to less than a buck per bottle. http://www.winemakersshop.com/kit.php.
7. If you have difficulty this year keeping things under your spending limit, consider opening a separate savings account for Christmas, perhaps with a separate debit card. This will make purchasing easier, and you will be less likely to go wander off your list and spend household money on extra gifts.
The bottom line is plan ahead, and stick to the plan. Advertised “deals” are everywhere. Use them if it is for an item on your list and it saves you money. Avoid them like the plague if the item is not on your list or it comes with strings attached.
Return to News Home