Money Sense Tips

Holidays can prove to be very expensive, particularly if you have a large family. Not everyone is equipped with a hefty bank account or a Christmas bonus from their company. This is precisely why it is important to plan ahead for Christmas expenses and avoid starting out the New Year in debt.

* Many banks offer a Christmas savings account option. It is wise to open this account as early in the year as you can, giving you months to save up for Christmas. The bank will provide you with a book of stubs for depositing money into the savings account each week. Typically, the suggested amount is $20; however, you can put as little or as much into the account each week, depending upon what your budget allows for. The money will add up quickly over the months, giving you a nice lump sum at the end of the year to use for Christmas shopping.

* Take advantage of Black Friday sales. It can be challenging to do your shopping on Black Friday along with millions of other people, but it is not impossible. For the most success, map out a plan of stores that are having the best sales on the items that you need. In order to do this, you will have to peruse many flyers to find the best deal. Once you have established your plan, make sure you are up bright and early and ready to shop. Be sure to map out your stores as well, particularly if you have to drive from one store to the next.

* Avoid opening credit cards to pay for Christmas. No matter how tempting it may sound to pay for Christmas on credit, chances are you will be paying off one Christmas for several years. This can lead to the next Christmas being financed on credit as well. Before you know it, you are up to your ears in Christmas debts of several years in a row. Instead, put aside a little money each week, whether in a savings account or tucked away at home.

* Make out your Christmas lists in advance. This will aid in Black Friday shopping, if you choose to participate. One major benefit to making out your Christmas lists in advance is that you can buy the items throughout the year when there is a deal too good to pass up. Expanding your shopping over the course of a few months will prevent the crunch on your wallet come the months of November and December.

Having a nice Christmas with a tree full of presents is not only desirable, but it is possible as well. Budgeting accordingly throughout the year is the key to having a nice Christmas with nice gifts without ringing in the New Year with chains on your wallet.

When should you purchase Christmas presents? Many people wait far too long to do this.

There are a number of reasons to shop early. Here are five of the best:

#1) More availability

When the holiday rush is on, there will be a limited supply of items. When you purchase at a time when there isn’t demand, you ensure the product is still available. So the quality of your gifts is likely to be better.

Often time when you wait until the last minute and the product isn’t available, you have to get something nobody wants. When you do your shopping early, you ensure your presents are well thought out.

#2) Spreading out the expenses

When you make all your purchases in December, this can wreak havoc with your finances. Instead, when you spread out the cost over the whole year, you will take less of a hit.

The reality is, you never know what expenses you will have in December. What if your car breaks down and you have to spend $1000 to fix it? This will seriously lower the amount of money you have to spend on Christmas presents. So buying throughout the year, instead of all at once, ensures you won’t be caught unprepared.

#3) Save money

This is one of the biggest reasons to shop early. While there are many “sales” during Christmas, few of them are legit. This is because the stores actually raise their prices right before the sale. They then “mark them down”, giving the item the appearance it’s on sale.

In reality, it will still cost more than what you would have paid at non-peak season. After all, why would they have a sale when demand is at its highest?

#4) Save time

When you go to the stores during December, they are much more crowded, and it takes a lot more time. Wouldn’t you rather be spending your time doing something else?

#5) On time presents

When you wait until the last minute to get something, you just are asking for trouble. If the product has to be shipped, there is a high probability it won’t arrive on time. When you buy something in July, on the other hand, you are guaranteed an early arrival.

Just don’t forget to keep track of what you’ve already purchased. This will prevent you from buying the same item twice.

The bottom line is, there are many reasons to do your shopping early. These are five of the most important. So get started shopping now. When Christmas rolls around, you will be prepared.