Holidays
Tips for stretching your holiday budget
By Dani Arthur
Bankrate.com
Savvy shoppers are expected to do comparison shopping online this year. According to a recent study conducted by BIGresearch for the National Retail Federation, there are a lot of smart shoppers out there.
If the study is correct, a whopping 88.7 percent of consumers surveyed researched items online recently before buying them in stores. Among other products, shoppers have searched online for merchandise such as electronics, clothing, appliances and home improvement gear. Nearly half said they will complete at least one purchase online. On average, consumers will use the Web for 28.9 percent of their holiday shopping. Each shopper is expected to spend $791.10 on holiday merchandise.
Buying Tips
One hopes those shoppers will comparison shop for better prices -- instead of spending too much by clicking "Charge my card" without thinking through their purchases.
Maximize your spending power:
1. Make a spending plan
2. Know your limits
3. Track your spending
4. Shop with a list
5. Shop early
6. Be an educated consumer
7. Load up your wallet with cash
8. Use credit judiciously
9. Beware of sales pitches
Holiday temptations
The holiday season is an all-out assault on your senses. The music, decorations,
lights and the delicious seasonal smells assail your sensibilities on every street
and in every
store. The pace is frantic, the mood is manic, and the atmosphere is,
well, different.
The holidays are so set apart from the norm that people are tempted to break out
of their norm -- for just the season.
"It's seduction," says Ruth Hayden, a financial educator and author of "Your Money
Life: The 'Make-It-Work' Workbook."
"Consumers are seduced into buying.
To be seduced means that you're crossing boundaries
that you've set. You're tempted to buy because you want to belong. You're tempted
to buy because you want to create love."
And that's where it gets dangerous -- financially speaking. We convince ourselves
that breaking from our budget and using our credit cards a little more freely just
this one time is all right. Come January, we'll get caught up and back on track.
"Unfortunately, too many consumers are paying for Christmas purchases beyond six months, a year, two years
and even longer," says Howard Dvorkin, CPA and founder of Consolidated Credit Counseling
Services Inc., CCCS, in Fort Lauderdale, Fla.
family traditions decide your spending
"Most of us cannot remember gifts we received last year, let alone as a child," says Dvorkin. "It's the family traditions and memories that really stand out."
When deciding what to buy and what to do, first consider your family's favorite traditions and holiday memories. What truly brings a smile to your face? What is the one thing you'd most like to do this holiday? Is there something new you'd like to try?
"If you don't have the cash in your pocket, you shouldn't be buying. You can't afford it. Next month, when the bills are coming in, chances are you're not going to be in better shape," Dvorkin says.
How about you? Do you plan and save for the holidays? Or do you just punt and end up paying off the holiday bills just as the fireflies are lighting the sky in the summer?
Here are some tips to help you wrap up your holiday spending without overspending.
1. Make a spending plan
Start with a realistic idea of how much you can spend on all your holiday purchases. Make a list of everything you usually buy, from the gifts to food to entertainment to travel expenses, and tally the costs.
"If you don't budget and set a specific dollar limit, then your spending grows and grows and grows. In January you'll be horrified by how much you've spent," says Mari Adam, a certified financial planner in Boca Raton, Fla. "And, don't get locked into the thought that how much you spend measures how good of a person you are."
