Happy December 1st and Official Festive Shopping Season. It is safe to say this year literally flew by as Christmas is 24 days away!
Christmas is the highest-ranking Holiday for people to shop, and just in case you might not believe me, here are are few statistics below.
- Total holiday retail sales in 2020 reached $789.4 billion despite the pandemic. (National Retail Federation, 2020)
- This figure was well beyond the initial forecasted holiday sales of between $755.3 billion and $766.7 billion. (National Retail Federation, 2020)
This is the time of the year that no matter how crappy the rest of the year was, there is a sense of joy and happiness that comes with the season which sees us spending more to ensure we and our loved ones are happy and receive the gifts they have been longing for.
5 Tips to Shop Smart this Holiday Season
Today, we will be sharing tips on how to shop smart this holiday season to ensure your loved ones have a happy season and you don’t go broke making that happen.
Create a Christmas/Holiday Fund
I actually spoke about this in an earlier “Saturdays LIVE” chat with Financial Analyst Floyd Thompson where we discussed having a separate account for Holiday spending. You can start this earlier in the year where based on your earnings and lifestyle, you decide on a specific amount for each month that will go into a “Holiday Fund”. You can create a new bank account OR ask your bank to add an account that automatically deducts the specific amount.
My December is quite hectic and includes Holiday Travel, New Luggage, Winter Clothing ( I live in the Caribbean), Gifts, Hair and Nails, Spending Money, and Holiday Decorations. I know it seems like quite a lot, but I do this yearly, so it’s carefully planned.
If you live in certain regions of the world, some banks have a special plan called a “Partner/Partna Plan” where you and the Bank are Partners where you decide on a period of time (16, 24, 36 weeks) where you put money down and after that period, the bank will add a specific percentage of that amount as an incentive. This is a great way to save if you are not a high-income earner and would like to enjoy the spoils of your labor at the end of the year.
Create a Budget
The Holiday Fund and Budget are quite similar, but the difference is that the budget is more detailed. For everything that you need for the season, create a list/itemize and the dollar value next to it. This will serve as a sort of guide to figure out how much everything costs and how much money you will need to save to cover the expenses.
I know that sometimes things come up that were not expected, but life happens and you might have to be flexible with the budget. A budget is a great way to help with money management and gives you a clear picture of how to allocate dollar amounts to your wants and needs. You can write things down on paper, create an excel sheet or opt for online software that looks great and is functional.
Shop Early
As it gets closer to December, you will find that things start to get more expensive. This is definitely based on supply and demand and especially in these times due to wars, the supply chain is pretty messed up. After you’ve created your budget and written down everything, the next step is to actually purchase.
I start my holiday shopping towards the end of September or in October and focus on things I need for the home like Sheets, Curtains, Cushions, Towels, and Bathroom things. I try not to focus on clothing as these are not a necessity for me so I’m not spending on that.
Shopping early also ensures you get the things you need before the holiday rush! People will be out and about trying to score deals, making it hard to even shop to get what you need.
Shop Sales
Again, this goes hand-in-hand with the point above but is a smarter shopping tip! During the Festive season or as things wind down you want to make use of ALL the deals. Major shopping days like Black Friday, Cyber Monday, and Small Business Saturday and In-store promotions like Macy’s Friends and Family Event should be already saved in your calendar. Please be smart about the items you purchase as we all know that stores add a percentage to the items and then add 25% off so in reality you are paying full price so be vigilant.
If you are shopping in-store, check out the sales rack first to see what they have then look for things that are 50% off, then 25% off, and in that order.
I tend to say away from dollar value as this is not a good sale.
Have fun
The holidays are a good time for you to have fun shopping and treat yourself to items you have been eyeing all year round. You’ve worked hard throughout the year and have been through so much and it’s time to just have fun getting the things you need. It is a great time to purchase a designer item that might be a bit less than the full price when it was released earlier in the year.
Holiday shopping is equal parts exciting and stressful. For many people, that stress isn’t just about figuring out what gifts to get their loved ones — it’s also about making sure their finances don’t take a serious hit due to increased spending.
Let me know in the comments how Holiday Shopping has been for you this season and if you’ve used any of these tips.
Written By:
Lorane Rhoden
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