10 Holiday Spending Tips for a Merry January:
Hello
again! As we are reminded by the television commercials, newspaper
ads, and the big displays in most of the major retail stores, the
Christmas sales have already begun.
Before
you decide to take advantage of those wonderful sales and discounts,
here are ten tips to help you make wise spending decisions so that your
aren't scared to open up your mailbox in January because of those bills
that you made in December.
1. Make a list and set a spending limit. Before
you begin that holiday shopping, figure out how much you can afford to
spend and write that down. Figure out who you want to buy for and set a
limit on how much you want to spend on each person. Don't forget to
factor in all of the supplies, such as tape, wrapping paper, and postage
and shipping costs into your spending limit.
2. Pay cash for your holiday gifts. Since
cash is harder to spend than credit, this approach alone may save you
some serious dollars. Also, avoid offers to receive a discount on your
purchase if you apply for a charge account with the retailer. While
this may save you money, it hurts your credit score, and the interest
rates on those cards are usually higher than most major bank's cards.
3. Do your shopping online. You
oftentimes find discounts that you would not find in the stores and you
will no doubt save time and money by not having to drive around from
store to store to find what you need. Plus, there are no crowds to deal
with!
4. Try doing a Secret Santa. Since
most of these exchanges involve setting a limit on the gifts, you will
see a substantial savings, and the limit can be set so that those in the
friends and family circle with smaller budgets won't feel embarrassed
about what they can afford to spend.
5. Start your shopping early. This
is probably one of the hardest things to do since many of us are
procrastinators by nature. But, by starting early, you will have plenty
of time to compare prices and catch items on a pre-holiday sale. Plus,
you won't feel that rush to get everything done at the last minute, and
your wallet won't feel the money rushing out to pay for those gifts.
6. Use layaway plans. This
kinda goes hand in hand with the point above. A layaway plan would
allow you to spread the money out across a longer period of time. This
will make it easier to pay for those large ticket items, and will reduce
the temptation to use credit instead of cash.
7. Make your holiday gifts. Giving someone a gift that you made yourself gives the gift a more personal touch and will mean less money out of your pocket.
8. Buy Christmas supplies after the holiday. Stores go bananas with sales after the holidays are over and will offer huge discounts to move that inventory out the door.
9. Book your holiday travel plans early. If
you are planning on traveling for the holidays, booking that flight or
hotel room early will save you money because the rates tend to go up as
it gets closer to the usual holiday travel time.
10. Start a Christmas fund in January. Most
banks and credit unions offer a Christmas saver account where you can
put a percentage of your direct deposit right into an account that you
have earmarked for your holiday spending. This way, you will have the
holiday cash when you need it and won't have to rely on those credit
cards to be able to get your shopping done.
Dorothea Bernique
Increasing H.O.P.E Financial Training Center
www.increasinghope.com