8 holiday spending tips

Q: The holiday season snuck up on me—again. How can I afford gifts on my limited budget?

A: By being creative. Whether you’ve already dipped into your holiday budget, are jobless or just can’t seem to stay ahead in the cash flow department, you can still participate in the festivities. You’ll just have to think outside the (gift) box. Here are some tips to get you through.

1. Cut back.
Don’t go on a spending binge to keep up a fabulous gift-giver image. Instead, skip the high-ticket, wow-them gifts and opt for those that are free or low cost. If your friends consider your gifts chintzy compared to prior years, you’ll learn who your true friends really are.

2. Shop early.
An early start gives you a jump on bargains and provides you ample time to comparison-shop. Log online for Internet specials, discount coupons and other deals from your favorite shops. Sign up for e-mail alerts to get pricing information, advance sales notices and Internet-only specials. As offers pour in, look for free shipping offers. Get maximum mileage out of these by having packages shipped directly to recipients’ homes, instead of yours, to keep your postage costs down.

3. Pay now.
As the holiday season approaches, many catalog companies provide deferred billing options. This tempting choice enables you to shop now and pay the bill three to six months in the future. In many cases however, if you can’t afford items now you won’t be able to afford them when the bill arrives, either. Don’t set yourself up for a future cash crunch. Instead, pay now.

4. Get busy.
Handmade items can substantially reduce your holiday-related spending costs. Are you the artsy or crafty type? If so, use your creative skills—knitting, crocheting, woodworking—to replicate a requested gift from a friend or family member. If baking is your forte, wrap up a batch of a favorite treat. If you have a knack for hair or nail care, car repair or some other highly regarded talent, consider wrapping up homemade gift certificates offering your services. If you’re all thumbs, ask a creative friend or family member to help. Consider offering car washing, baby-sitting, garage cleaning or some other services to “pay” for their craftsmanship.

5. Recycle.
Know anyone who sold Avon, Tupperware or another product and still has new, unsold inventory? If so, you may have the answer to your dilemma. If you offer a reasonable price, that former salesperson will likely be thrilled—and relieved—to finally sell those products.

6. Keep a secret.
Ask around, and you’ll likely find that you’re not the only one short on cash. If that’s the case, ask friends if they would like to participate in a secret pal gift exchange instead of buying presents for everyone. To choose a secret pal, participants write their names on slips of paper, put them in a hat or bag, then choose one name each. That person becomes the secret pal for whom the chooser will buy a gift. The total gift price is usually limited to $10 or $20. Gifts are purchased and exchanged before the holiday season ends. When you consider how many people for whom you usually buy gifts, buying just one instead of several is a huge way to keep your costs down.

7. Plan.
If you’re always running short during the holiday season, set up a holiday gift-giving fund. Put aside $5 or $10 each week just for holiday purchases. If you begin saving the first week of the new year, you’ll have a sizeable amount to splurge on next year’s gifts.

8. Give your best.
Don’t be stressed by your lack of finances. Instead, keep in mind that even the best present you purchase won’t compete with your presence. So tape on a smile, and make time to hang out with family and friends. Then wrap up the memories, and share them from year to year.

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