7 Spending Secrets: Saving Money on Christmas

Santa must have an unlimited supply of money. How else would he be able to afford gifts for all the children of the world when we struggle to purchase gifts for the dozen or so people on our list? At a time of the year when goodwill should be abounding, our debts are the only thing mounting. Below are some suggestions for how you can reduce the cost of buying Christmas years this year.

Step 1: Start shopping early in the year. Make your Christmas list during the summer and decide on your budget at that time. There may be some additional people to add as you get closer to the holidays, but chances are you already know who needs to be on your list. Now that you’ve created your list early, begin making gift purchases at least 6 months before the holiday season. If you commit yourself to purchasing at least 2 gifts a month until Christmas you won’t feel the money crunch that other shoppers feel come December.

Step 2: Pick up the Sunday newspaper. The Sunday newspaper is full of ads and coupons. Some stores publish a 40%-50% off coupon on one item each week. Because you have begun your shopping early, it should not be necessary to pay full price for any of your gifts. There will come a time that the items you have your eye on will go on sale. Be patient.

Step 3: You’ve begun your Christmas shopping during the summer. That means there are many holidays that happen between summertime and Christmastime. Large retail stores will have sales at the 4th of July, Labor Day, Columbus Day, Veterans Day, etc. Take advantage of these sales to mark some items off your list. If you’re courageous enough to brave the Thanksgiving weekend sales, there are deep discounts during this time.

Step 4: Don’t be afraid to explore venues other than retail stores. You can find new items at garage sales, Goodwill or the websites www.Craigslist.com or www.ebay.com. If you go this route, make sure the item is in fact new and comes in its original packaging.

Step 5: Consider removing some of the “items” from your list and replacing them with opportunities to spend time together. For instance, does your husband really need that new watch, or would he appreciate concert tickets instead? The tickets might be something he would have purchased for himself, so you’ve effectively cut that future cost from your family budget while still giving him what he wants. And, it’s an event that you will be able to attend together!

Step 6: Don’t use credit cards to make Christmas purchases. This is the biggest mistake consumers make during the holidays. Not only are you responsible for the cost of the purchase itself, but you are also responsible for the interest that your credit card will charge you.

Step 7: Keep track of your purchases and the amounts that you spend over the course of the several months of shopping. Once you see your expenditures written down, you will be able to evaluate and re-evaluate your purchases for the next holiday season. If the total costs scare you, don’t be afraid to start looking at where you can make cuts to your list for next year.