This week I finally started my Christmas shopping, usually I am way ahead by now, but this year I am way behind! Next week is Black Friday, followed closely by Cyber Monday, when a lot of us will power shop to get it all done. However, to help avoid a nasty credit card bill in January, here are some useful Christmas shopping strategies.
Set a Budget. Without a plan or budget, most people will overspend. So, before you start, prepare a list and how much you want to spend per person; this will force you to think twice before impulse buying.
Compare Pricing. Shopping online can save a lot of time, but before you click ‘add-to-cart’ be sure to compare prices from various retailers. If you do venture to the mall, knowing which store has the best price will not only save you time, but it will help you avoid paying too much.
Use Cash Not Credit. Stores are starting to accept cash again, take with you the total amount you want to spend in cash, that way you can easily track how much money you are going through. However, some purchases don’t make sense to pay for in cash, one strategy I use all year long to keep track of my spending, is to transfer the amount I want to spend into a separate bank account and use only the corresponding debit card to pay for things.
Make a List. Whether on-line or in-store, sticking to a list will help you avoid impulse purchases.
Set Boundaries. Higher prices due to inflation this year has strained a lot of people’s finances; whether you have a lot of people on your list to buy for; or you’re on a limited budget, talk to your family and friends about setting limits to control spending.
Keep Track of What You Spend. Do you know what you have spent so far? If not, view your up-to-date statements on-line and make a list of your purchases, if you have paid cash/debit for some things make sure you add those expenditures to your list as well. Be detailed, and don’t forget to include the cost of deliveries, cocktails with co-workers, wrapping paper, gift bags and treats.
Set yourself a reminder in January. After the holiday season is over; add up the total amount you have spent, divide it by the number of pays you will receive in 2022; and start setting aside a Holiday Fund for next year.
And remember, some of the best gifts are not costly. Spending time together in person or over Zoom, enjoying affordable activities like skating, sledding, holiday festivals or simply going for a walk to view the neighborhood light displays create wonderful memories.
Furthermore, avoiding a huge credit card bill in January could be the best Christmas gift you ever give yourself!
Happy Shopping!
Tracey
Source: Original article posted on Advisor.ca by staff 12-11-13, MT 2022-11-18
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