This was originally published on Monday, July 2, 2018, in the Pacific Daily News. Click here to subscribe to the PDN.
Believe it or not, the year is more than halfway through, and the holidays are just a few months away. Summer brings some great sales, such as the Fourth of July and Labor Day. Most stores are discounting stock to make room for new items. It only makes sense that you take advantage of the sales and start your holiday shopping.
Shop early. Give yourself time to compare prices; don’t wait until the last minute. Being in a crowded store on a last-minute shopping spree is tiring. If you feel exhausted, you are tempted to just buy anything regardless of the cost, which ultimately will break your budget.
Have a spending plan. Create your “nice” list by separating the list into three parts. The first tier is those closest to you, such as your parents, siblings, spouse or kids. Those in this tier are the ones you plan on spending more. Next tier consists of your close friends, your kid’s best friends, and so forth. In this tier you may not plan on spending as much as those in the top tier.
In the last tier are those that are not as close to you like co-workers, etc. For the top and middle tier, assign each person a dollar amount that you wish to spend on them. For the bottom tier, consider a homemade gift such as cookies, cupcakes or homemade jelly. Put a total amount on how much you plan on spending for those in this last tier.
Budget. How much can you set aside in your budget? Will you need to cut down on your typical monthly spending to save? Can you divert some savings from other goals to fund your holiday expenses? By looking at your budget now, you can spread holiday savings over several months, and make smaller cuts to each month. This is much more sustainable than trying to make unrealistic budget cuts in November and December.
Keep your shopping list with you. Carry it in your purse, wallet or phone. If you know what you want, you can breeze through the store without going off budget.
Be creative. There are many websites that are dedicated to making useful homemade gifts for almost nothing. Take the time and browse these easy-to-make crafts. Start making them before the busy schedule of the holidays kick in. Store-bought gifts are great, but many people appreciate the time, energy and thought put into a homemade gift much more.
Talk to family and friends about holiday spending. If you have looked at the math and realized that you won’t have as much available as you would like for holiday expenses, it can help if you talk to family and friends early. They may be in the same boat, and together you can set limits on the amounts you spend for gifts this year. You can also come up with less expensive, creative ways to enjoy the holidays together.
Michael Camacho is president and chief executive officer of Personal Finance Center. He has more than 24 years of experience in retail banking and at financial institutions in Guam and Hawaii. If there is a topic you’d like Michael to cover, please email him at firstname.lastname@example.org and read past columns at the Money Matters blog at www.moneymattersguam.wordpress.com.