Tips
for stretching your holiday budget | | |
| 6.
Be an educated consumer
Comparison-shopping stretches your holiday
funds further. Fight the urge to get your shopping over quickly, recommends the
Consumer Federation of America and the Credit Union National Association. Instead,
take some extra time to find the best deal before heading off to the stores by
scouring catalogs, sales advertisements and the Internet.
Easier said than done. Most people are frazzled
with their jobs and busy holiday schedule. They often work right up until Christmas,
so their holiday shopping is done last minute, says Adam. And,
think twice before you buy. Ask yourself if the gift will be appropriate for the
recipient and within your price range. If not, don't buy the gift, particularly
if you will have to charge the purchase. 7.
Load up your wallet with cash
Leave your credit cards at home. "Spend
cash. This will force you to budget and make overspending more obvious,"
says Dvorkin. According to the CCCS, people spend up to a third more when paying
with credit instead of cash. There is no emotional attachment to plastic like
there is to cash. But, if you must use plastic, Myvesta.org
suggests that you deduct all your purchases in your checkbook register. That way,
when the bill arrives, the money will be in your checking account to pay the bill
in full. 8. Use credit
judiciously
Shop with no more than two credit cards
-- preferably low-interest
rate credit cards, not the expensive department store cards. The more cards
you use, the harder it is to track spending. Use one with a zero balance for purchases
you will pay off in full. Use the other, low-interest rate credit card for purchases
you plan to pay off over the next few months, suggests Myvesta.org.
9.
Beware of sales pitches
Don't shop under the influence
of holiday hype. Retailers work hard to entice you to buy, buy and buy. If you're
not careful, you'll spend more than you planned. Don't fall for credit card offers
to "skip a payment." You'll just pay more in interest next month. Watch
out for the "buy now and pay later" offers that encourage you to spend
money you don't have. And, bypass applying for the department store credit card
to get a one-time discount. "Downsize holiday
spending, not your holiday joy," says Mari Adam. "Limit the size of
your Christmas in terms of gifts, and make it big on meaning -- from family, friends,
traditions to creating memories." | 
