Don't Overspend this Holiday Season
10 cash-saving tips
Courtesy of USAA
Hanging onto your loot this festive season — and the next — requires planning. And lots of discipline. So before you press the start button on your holiday shopping, review these 10 cash-saving tips.
1. Have a plan.
Ever gone to a grocery store hungry and without a shopping list? You want to buy everything that looks good! Holiday shopping's like that. So, do like Santa: Make a list. Include the person's name and what you want to spend. After you buy, cross the name off your list and move on to the next one.
2. Charge with care.
Don't put purchases on a credit card unless you plan to pay the bill in full the following month. Otherwise, you could end up paying interest and finance charges on your purchases for months to come — and that would really blow your budget!
3. Save receipts.
Keep an envelope in your purse or wallet for receipts. You might find a lower price or better gift, and need to return the item.
4. Give thoughtfully.
· Draw names from a hat instead of buying for everyone.
· Give the gift of time or self.
· Buy only for the children.
· Agree to exchange cards rather than gifts, or give to a charity.
· Give homemade gifts. These are always appreciated.
· Do whatever you can to creatively remember others during the holiday season with a focus on not breaking the bank.
5. Procrastinate early.
Some shoppers are done by October, saving money by discovering bargains all year long. Others wait until the last minute and find the best deals of all. Decide which approach works better for you. You could end up spending more than you planned because either you bought and (and forgot) or because you're in a mad rush to get home with the perfect gift in hand, no matter the cost.
6. Shop from home.
Finding just the right gift for Uncle Joe, and comparing prices and features is sometimes easier online. And, if you shop early enough, you might be able to take advantage of free shipping offers. Most online retailers offer free shipping beginning the day after Thanksgiving.
7. Credit cards rule.
Credit cards should be your preferred method of payment for online shopping, according to the Federal Trade Commission. Alternative payment methods such as electronic funds transfers are available, but you get more protection using credit cards. Not only do they limit your liability for unauthorized charges to $50, they provide a means to dispute charges. Many also provide extra bennies: extended warranties and airline miles. Still, don't forget tip No. 2.
8. Safety first.
· Online shopping can be a great way to take care of your holiday shopping, but use caution:
· Know who you are buying from — check bbbonline.org if you have questions about an online vendor.
· Never give out your Social Security number online.
· Check, check, and cross-check. Make sure you compare prices, including shipping and handling, before making purchases.
9. Avoid the impulse.
From stocking stuffers to the latest gadgets, resist the temptation to go overboard. You've got a plan, a budget, and a list — stick to it!
10. Look ahead.
Start building next year's holiday budget in January. Set up a separate holiday savings account at your bank and feed it regularly. Saving just $25 a week will create a painless $1,000 holiday budget for next year.
About USAA
USAA, a diversified financial services company, is the leading provider of competitively priced financial planning, insurance, investments, and banking products to members of the U.S. military and their families. Named by BusinessWeek as 2007’s Customer Service Champion and ranked highest among financial services companies for customer advocacy in a Forrester Research survey, USAA provides convenient and accessible financial products to its more than 6 million members. For more information about USAA, or to learn more about membership, visit usaa.com.
USAA is a diversified insurance and financial services organization that has served the military community since 1922. USAA Financial Planning ServicesSM refers to financial planning services and financial advice provided by USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in California), a registered investment adviser and insurance agency, and its wholly owned subsidiary.
USAA means United Services Automobile Association and its affiliates.