Staying On Budget For Christmas

USA Today has an article in their Money section today about staying on budget this Christmas. Seeing as how most of us are looking for ways to cut back and avoid overspending this Christmas, it's worth a read. But for those of you who won't take the time, here's a quick synopsis:

1.    Have a plan

Retailers always have a plan - a plan to get you to spend more than you should! So the first thing you need to do is plan your spending before you get into the retail environment. Plan ahead of time what you can afford to spend without going into debt and then STICK TO YOUR PLAN!

2.    Don't fall for questionable "deals"

The so called "deals" that many stores offer at this time of the year are nothing more than come-ons. When you get into the store and see the camera or DVD player or TV that was advertised at that super low price you can tell pretty quickly that it's not such a good deal. So what do you do? You buy the model that wasn't advertised at a higher price, busting your budget. Be sure to run price comparisons online before you get into the store.

3.    Don't miss any discounts

This is one I haven't used much personally, but the writer of the article says that many times there are additional coupons and discounts available online.

4.    Buy practical gifts

Whenever the economy is tight gifts tend to trend in the practical direction. The author suggests things like clothes, tools, books and my favorite - FOOD!

5.    Use cash or debit cards

This is probably the biggest budget protector in the list. DON'T USE CREDIT CARDS!!! Even if you plan to pay them off January 1st. Why? Studies show that we tend to spend more when we use cards - about 20% more on average. Use cash or debit cards and you avoid the Christmas spending hangover in January!

So what's your budget protecting strategy for the Christmas gift-buying season?

Comments

[Jan Dillard]

We don't wait until Christmas to buy, buy, buy. We have a gift box and a gift list. When we see something throughout the year that we think would be great for so-and-so, particularly if it is a sale item (after Christmas sales, white sales, etc.), we get it and mark it off the list, putting it in the gift box. We usually average 2/month. Then, by the end of November, we're typically done or nearly done. Well, all but the wrapping. Plus, we've often forgotten what we put in the gift box (we just know we marked the person off the list), so pulling it out to wrap it is like finding that perfect gift all over again!