How to Buy Christmas Gifts and Not Go Broke

Christmas and holiday shopping can turn into an expensive spending frenzy. From traditional gift baskets to the latest iPod, we shell out thousands of dollars on holiday gifts each year.

This year, do things a bit differently by mapping out a holiday gift spending strategy. Here are some spending tips that can help you get the biggest bang for your holiday bucks:

Difficulty: Easy

Instructions

1. Work out (in writing) a holiday budget. Designate X dollars for gifts, Y for decorating, Z for entertainment, travel, and so on. Then keep a running tally. Make sure to track and deduct amounts from each list as you spend the money. This will enable you to monitor your spending more carefully.

2. Make a gift list. This is the same principle you should be using at the grocery store. If you shop without a list, you will spend more money. It's as simple as that.

3. If you're not sure what to get your favorite people, take a window-shopping tour of the stores or click around the internet. Leave the credit cards home or at least out of reach. Instead, bring along a pencil and paper so you can jot down ideas as you go.

4. Shop for deals and bargains. Keeping your eyes open for specials and other discounts can cut the cost of gifts in half.

5. Set up a Christmas account at your local bank or credit union so you will have a stash of cash to pay for next year's festivities. It's an old-fashion idea, but it is still one of the simplest, most effective ways to fund holiday expenses. Example: If you sock away $75 a month, you will have $900 (plus interest) on hand in one year.

Tips & Warnings

• Not sure what to get your favorite nephew? When in doubt, consider the direct approach: Ask the people on your list what they would like; it beats guessing, which only wastes money on things they may neither want nor appreciate.
• Remember, it is the thought that counts... not necessarily the price of the gift. If you spend $200 on Olivia, that doesn't mean you have to spend $200 on Angie just to keep things even. The right gift has no price; it is special because it has meaning for the recipient ... often for the giver, too.
• Do holiday shopping all year round. Pick up special deals and stash them until the holiday.
• For many people, the holidays are a mixed blessing, a combination of seasonal warmth and good cheer ... tinged with money frustrations. However, by planning ahead and budgeting your spending, your holidays this year can be an enjoyable and worry-free time for you and for your family.

[BarryWaite]

on 12/2/2007 Great timely article. I was just up in Wisconsin a couple of weeks ago for the Carolina game...of course I'm assuming all Wisconsin people are Packer fans. Great article!

[coachmac4]

on 10/26/2007 Our family ALWAYS asks the person for a list. Why guess?