Uncommon Cents

Holiday shopping is not new, unless you’re a teenager getting your friends gifts for the first time. Still, why does everyone seem financially strapped when the calendar turns to December (or, worse, in serious credit card chaos when the January calendar comes out)?

To me, this is one of the biggest examples of slow learning. If it happened last year, what makes us think it won’t happen this year? What can you do to try to get your holiday shopping budget under control?

Start Now: Yes, now. If you start for 2009 right this second, that’s great! Even if it’s 2008, the earlier you start, the better. You may not necessarily have to actually buy everything (I do appreciate the power of holding onto cash as long as possible) right now, but at least have a plan for people’s gifts and figure out how much they cost. In addition, save, save, save! Consider this next tip as well…

Separate Saving from Discounts: Many people cannot separate the concepts of saving money for the holiday shopping from buying the holiday gifts. They are not the same thing; no matter if the great bargains don’t come out until November and December, the dollars can be put away starting anytime. If you want to hold onto them until you find something ridiculously discounted the day after American Thanksgiving, that’s up to you, just make sure you start accumulating those dollars early on.

Keep Putting Dollars Away: Don’t stop your holiday saving, no matter what time of year it is. You will need those dollars and you’re better off having them than not. Simply figure out how much you spent last year on the holiday shopping, add 10%, and divide by twelve. Put that much away every month into a high yield or money market savings account: key words–every month.

Don’t Get Caught Up in Black Friday Madness: Black Friday–the day after American Thanksgiving–is traditionally the start of the holiday shopping season, and at least in American is known for having some of the best bargains of the year. In fact, some Web sites such as Black Friday Info are notorious for putting out advertisements for large retailers early. Yes, these can help you spend less, but be careful and don’t get caught up in the madness. Make a plan, have a plan, stick to it!

Keep Writing Stuff Down: Remember our often discussed friend the spending log? Keep using it. Review all of your purchases–even before you buy–as well as figuring out if you’re spending what would be a reasonable amount for the items. It’ll also help you with planning for next year.

The holidays are supposed to be a happy time of year, but for so many they’re a stressful time of year, not just due to the flurry of activity but also due to the financial stressors. Plan ahead, use your plan, stick to it, and reduce your stress and increase your happiness toward the end of the year!

Tags: Banking, Budgeting, Debt, Frugality, Social aspects

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