Make a Plan For Your Spending
With the Christmas season fast approaching shoppers are making their lists. Savvy shoppers plan for their holiday buying. They create a budget, save throughout the year, avoid credit, and stick to their plans. Yes, making a budget and sticking to it can be a real kill joy during the holidays, but it's vital to keep your financial house in order. Here are some tips offered by smart shoppers.
Start with a realistic idea of how much you can spend on
all your holiday purchases. Make a list of your regular expenses for the
holiday months, then add to them costs for gifts, entertainment and travel.
Then add up all the expenses, does your regular paycheck cover them all ?
If you don't set a dollar limit, your spending will continue to grow.. When January comes around you'll be shocked to see what you spent. In January you'll be horrified by how much you've spent. Unfortunately people feel pressure to buy gifts and what they spend is a measure how good a person they are.
If you don't set a dollar limit, your spending will continue to grow.. When January comes around you'll be shocked to see what you spent. In January you'll be horrified by how much you've spent. Unfortunately people feel pressure to buy gifts and what they spend is a measure how good a person they are.
Know Your Spending Limits
Most of us cannot afford to shop carte blanche, but we do
it anyway. Decide ahead of time what you can afford to spend on each person on
your list then save your receipts as you shop. STOP when you reach this limit.
If you find you are limited on what you can spend this year, set a priority for
those whom you really wish to buy for. You might even discuss it with friends
and family, and explain you won't be able to exchange gifts. That will avoid
the awkward situation of having a gift bought for you and nothing to exchange.
Ideally you should be able to pay off holiday purchases within two to three
months after the holidays.
Keep Track of Your Spending
You made a shopping list... use it ! Plan your shopping by
stores, don't wander or window shop. Make your purchases and leave. This has
the added advantage of saving you considerable time and avoids impulse buying.
Avoid Last Minute Shopping
Shop early, the best time to shop for Christmas is from
Oct. 1 and Dec. 1. Avoid the holiday shopping crowds and allow time for
comparison shopping for the best deals. A last minute shopping spree does
nothing but exhaust you and forces you to make poor purchasing decisions to
save time.
Research Your Shopping - Compare
If you shop early and take time to comparison-shop, you
will stretch your budget further and either save cash or be able to purchase
for more people on your list. Avoid the urge to complete your shopping quickly.
Watch advertisements in your paper, make use of coupons, or research the
Internet. Doing so will help find the best deals. I know this is easier said
than done, but force yourself to take the time and it will be payoff after the
holidays when you still have bills to pay.
Pay With Cash, Leave Your Card At Home
Probably the best tip is to make your purchases with cash
and leave your credit cards at home. This all but eliminates the temptation to
over spend on a gift and you won't be tempted by hookers at the shopping mall.
According to Consumer Credit Counseling Service, shoppers will spend as much as
30-40% more when shopping with credit cards. If you do use credit cards, a neat
trick is to deduct each purchase from your checking account register. That way
when the credit card bill arrives, the money is still in your checking account
to pay the balance.
Limit Your Credit Card Use
Try to limit your charges to just two credit cards, and if
possible use those cards with the lowest interest rates. Most department store
credit cards have high interests rates, don't use them if you can avoid it. The
more cards you use the more difficult it will be to keep track of your
expenses.
Avoid the Hype, Avoid New Card Offers
Retailers and credit card companies know that you are most
susceptible to purchasing pressures during the holiday seasons. Resolve
yourself to avoid signing up for new accounts or no payment for day offers.
Those rack up interest fast and you'll blow your carefully planned budget
before you know it.
Borrowing To Spend
Probably
the worse thing you can do is borrow money for your holiday purchases. Credit
cards are a form of borrowing, but taking out actual cash
advance loans or installment loans from your bank will absolutely wreck
your budget. These are high interest loans with high penalties for late
payments. If you know in advance you will be short on cash for the holiday
consider picking up a part time job. The Christmas season typically sees an
increase of 20-30% in retail staffing.