Christmas Shopping on a Budget

In these tough economic times, many are viewing Christmas shopping as a luxury. However, with some forethought and budgeting, Christmas shopping can still be accomplished without overspending and going into debt. Here is a 7-step plan on how to Christmas shop on a budget.

1. Pick a number. First, decide just how much you will spend this Christmas. Initially, it may seem an impossible task to guess how much you will be spending. However, what it really comes down to is calculating the exact amount of disposable income that you have accumulated for holiday shopping, and/or how much debt you are willing to assume.

2. Make a list. Sit down and compile a list of everyone for whom you will be Christmas shopping this year. Then, decide how much you will be spending per person. If you have any gift ideas for your recipients, write them down as well. Once the list is made, look over it carefully. Ask yourself if some expenditures can be reduced. Perhaps some of the gifts can be substituted with less extravagant items. Alternatively, if the items cannot be replaced, perhaps other individuals can contribute to these gifts and make them mutual gifts.

3. Keep a shopping folder. As you shop for the people on your Christmas list, keep all shopping receipts in a folder. This will provide you with hard evidence of how much you are spending and on whom. Keeping a folder will also help curb impulse buys.

4. Comparison shop. Allow enough time ahead of Christmas to do some comparison shopping. This is much easier when performed online, where several product manufacturers can be lined up side-by-side without ever having to visit a store or showroom. Online shopping also provides instant access to consumer product reviews.

5. Sign up for e-mails. Sign up for store e-mail lists whenever you get the chance. If you are worried about having too many junk e-mails in your account, provide a separate store-only e-mail address. Stores will often send coupons and special promotion announcements to e-mail subscribers. Likewise, many stores will offer discounted or free shipping to e-mail subscribers.

6. Buy in bulk online. Quite often, retailers whose products are purchased online offer significant savings or additional gifts compared with their brick-and-mortar counterparts. However, shipping expenses usually detract from these savings. If at all possible, find gifts for several individuals on your Christmas shopping list from a single retailer in order to save on shipping costs. Alternately, find out if the retailer provides free shipping if online orders go over a certain dollar amount.

7. Make homemade gifts. Arguably, making your own gifts is one of the best ways that you can Christmas shop on a budget. Making homemade cookie or bread mixes, magnets, stockings, wreaths, etc. is not very difficult to do or expensive. By investing your own time and talents into making a homemade Christmas gift, you also give your recipients something unique and personal.