Holiday Shopping Tips

Keep more green in your pocket this Christmas season by employing a few simple tips and money-saving strategies.

First, carry cash. While it can be argued that you have a level of protection with credit or debit cards that you don’t have with cash (if cash is lost, it is gone), but if you take care to keep your cash safe (for instance, carry the bulk of it in a safer location not easily pick-pocketed, and don’t flash the larger amount in public), you can reap some psychological advantages to paying with cash. Plastic money doesn’t seem like “real money” on some deeper level, but it’s always hard to turn loose of the green stuff. Better yet, carry only large denominations, which are even harder to break, and you’ll be much less likely to plop down payments for small purchases that add up to big expenses.

If you do choose to use credit cards, consider the terms if you have more than one to choose from. Know which ones offer the lowest interest, or incentives (ones that actually add up to something and not just teasers). Watch out especially for over-limit penalties that could incur a penalty charge and/or increase in interest rates.

Keep a budget sheet and write down what you spend as you go. If you tend to buy multiple small gifts for some of the people on your list, you can easily forget what you’ve already spent and go over budget. Even if you buy only one gift for each person, it’s a good idea to keep a running tally so you don’t overspend. You may want to include other holiday expenses as well, such as decorations or food for parties.

Speaking of writing things down, a list of what you plan to get for each recipient can also help. Making a shopping list in advance gives you the chance to check circulars for sales and compare prices, and helps prevent lots of impulse buying, which the stores are experts at manipulating you into.

To be continued in Part 2 ...