9 tips for stretching your holiday budget |
| By Dani Arthur
• Bankrate.com |
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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.
The study says 44.2 percent of consumers will go online
to shop at some point during this holiday shopping season, about
the same as in 2007. On average, consumers will make one third --
33.6 percent -- of their holiday purchases online, up from 30.2 percent
last year.
Perhaps a sign of poor economic times, each shopper is expected
to spend $832.36 on holiday merchandise, a paltry 1.9 percent increase
over the $816.69 spent last year on average.
| 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. |
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| Maximize your spending power: |
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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., or CCCS, in Fort Lauderdale, Fla.
Let
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.
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