‘Tis the season to get yourself deeper and deeper into debt? Well, it doesn’t have to be! While it’s easy for many of us get caught up in the holiday spending frenzy, there are ways to shop for everyone on your list while sticking to a sensible budget. The best part is, you won’t come out of the Christmas season to a New Year full of bills from your creditors.
Follow these tips for shopping on a budget:
-- Just like Santa, make a list and check it twice. Make a list of everyone that you intend to buy for, then budget a reasonable amount you can afford to spend on each person and stick to that amount! Don’t let yourself be tempted to go over your budgeted amount under any circumstances.
--When shopping in stores, always pay with cash. When you are spending the cash in your pocket you will be much less likely to overspend than if you pay with a credit card.
--Shop online -- but only when you can take advantage of free shipping offers. Online shopping is great because you will face less temptation to buy impulsively than when you peruse through a store. But be careful. Online shopping usually requires payment with a credit or debit card. If you do shop online, put the cash aside as you place your online orders and pay the bill immediately.
--Comparison shop for must- have items. There are many online websites and magazines that offer product and price comparisons. Be sure to do your research so you can get the best deals.
-- Beware of “Black Friday” sales. The day after Thanksgiving, otherwise known as Black Friday, is the official kickoff to the holiday shopping season and a notoriously huge shopping day. Most stores open at the crack of dawn and offer too-good-to-be-missed deals on hot items. While most of the deals are legitimate, you have to get to the stores early. Most stores only offer these special deals for a few hours that morning-- and if they run out of the sale items before that there are no rain checks issued. The deals are a way to lure you into the store, however, so as you scour the sale ads be sure to keep that in mind. Consider a back up plan if the store sells out of the item you were hoping to purchase.
--If there is an expensive item that you really want to give to someone, consider splitting the cost with a friend or relative. Your recipient will still get to receive the gift, but you won’t have to foot the entire bill yourself.
-- Instill a Pollyanna system instead of buying for everyone in the family. There is no law that says you have to go broke buying for every member of your extended family. Have your family put everyone’s name in a hat and draw names to see who will buy for whom next year. If your family has never discussed the idea of doing a pollyanna-- bring it up! You may be greeted with a sigh of gratitude from family members who are still paying off the bills from last Christmas.
-- Plan for next year by opening a special savings or Christmas club account. If your employer offers direct deposit, have a predetermined amount deposited into the account each payday. You won’t miss a small amount of money each week and by the end of the year you’ll have plenty of extra cash for holiday spending!
-- Finally, don’t lose sight of what the season is really about. Will your child really die if he or she doesn’t get that pricey new video game system? If you can’t afford that hot new toy this season, explain to your child that it is just too expensive. You may be surprised at how understanding your child can be-- and he or she will probably just ask for a less expensive item and end up being just as happy with it on Christmas morning.
