Shop and save this Christmas with Home and Garden Gifts!
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Tuesday 2 September 2008 1:05 PM
There are only 17 weeks and counting until Christmas comes round again, but with the Credit Crunch still hanging over us and ever-tightening finances, there's no time like the present (!) to start budgeting. 2007 saw the beginning of the retail slow-down, with sales figures for the three months up to Christmas showing a tiny growth of 0.3% compared to 2006. So the question is, how do you come up with, and stick to, a budget to make sure you don't over-spend in the face of price increases? The first thing to realise is that there's more to Christmas spending than just presents. There are decorations, clothes, parties and travel to think about too. And don't forget about cards, postage costs, and phone calls to loved ones. Next, you need to try and figure out how much you spent last Christmas. Go back and look at credit card bills, bank statements and your check stubbs to get an approximate answer. Then you'll need a plan that will help control this year's spending. Start by listing expenses that aren't related to gifts. Everyone will have different priorities here: some people spend a fortune on long-distance phone calls to friends and family, others host parties. Try to work out where your big expenses lie and think creatively about reducing their costs. For parties, when guests ask what they can bring, suggest a food dish or a bottle of drink instead of a polite "nothing". Also try not to limit yourself by what you have done for Christmases gone by. Just because you always do things a certain way (i.e. you always have a party) doesn't mean that you can't try something new this year (i.e. don't host a party, let someone else do the hosting this year). When it comes to present-buying, it pays to have a plan. DO NOT just take yourself off to town and spend. Succumbing to impulse buying is a very risky business for someone on a budget as it can lead to a spiralling outlay. If you take the time to come up with a plan of who you want to buy for and what you want to buy them (with an idea of where to buy it from), you're far more likely to buy gifts that are appreciated by the recipient. Make a list of EVERYONE you'll be buying a gift for. Include relatives you'd rather forget, all work-related presents and even the gift you keep under the tree just in case someone unexpected comes round and you don't have a present for them. Think about how much you can afford to spend on each person. Write the figure down next to their name and then come up with an overall gift total. Can you afford to spend that much? If it's more than you can afford, you really will have to skimp on some presents. It's a difficult thing to do, but it's made easier by having everything written down in front of you. Now you've got your indiviudal budgets, it's time to window shop. Think about everyone on your list and try to come up with a couple of gifts that would suit your target figure. Once you've got a good idea, put it on the list. You will probably need more than a few brain storming sessions to get this right. Don't forget homemade or personal gifts: these can be an inexpensive way to make sure the thought really counts. If you browse through our Personalised and Gifts sections, you will stumble on a whole range of gift ideas that don't even require craft skills. For instance, a gift of a photo cushion personalised with a picture of your children would make the perfect present for grandparents without breaking the bank. Once you've got your definitive list, it's time to start shopping. You can save quite a bit of time just by glancing at your list while you're out and about, to see whether you could get another gift from that particular shop. By comparing your actual purchases to your planned purchases, you'll be in much better shape to avoid a surprise in January. Smart shopping can have other perks too, because if you underspend once you've bought all your planned gifts, you know you can spend the saved money on another gift, or squirrel it away to help pay off your credit cards later. Whatever the gifts you're looking for, there are a number of simple things you can do to reduce costs: 1. Don't wait until the last minute. If you wait until Christmas Eve to do your gift shopping, you'll be forced to buy inappropriate presents at high prices. If you start early, you'll have the luxury of time to do some price comparisons between different retailers. 2. Avoid using store cards because they have the highest interest rates. Even if you're planning to have the bills paid off by February, it will pay in the longer term to avoid extra outlay on interest payments. 3. Do some comparison shopping online. Even if you're not comfortable with the idea of shopping online, internet prices will give you a good idea of what reasonable prices are and help with budgeting. 4. STOP shopping when you've bought the last gift on your list! A little extra something for your partner or for the kids can quickly turn into several somethings extra and ruin your budget plan. With all that financial planning done and dusted, you can sit back and enjoy your Christmas, knowing there won't be any nasty surprises in the new year.
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