Spending and Saving

13 Ways to Save Money on Holiday Gifts

Black Friday may be the day retailers start turning a profit, but for shoppers it can be the day budgets starts plunging into the red. Still, with careful planning and some creativity, you can avoid the chest pains that so often come in January when you open your bills. And cutting down on holiday spending doesn’t mean you have to cut down on the holiday fun—not with our 13 savvy tips.

1. Create and stick to a budget. Avoid surprises with a holiday budget that includes everything involved in celebrating the holidays, not just your gift list. Consider the cost of attend parties, making or attend holiday dinners, shopping expeditions, lunches with friends, etc. Examine your finances and decide how much you can afford. Then assign amounts to each expense category and stick to it.
2. Plan your gift list:.It’s so easy to go off-list when you see “the perfect present”–even if it costs more than you originally planned. Set a spending limit for each person and jot down gift ideas before you head out to shop. Need help? Search blogs for inexpensive ideas. At Coupon Sherpa we offer a gift-list worksheet that can help keep you organized.
3. Buy early. Naturally, the best way to save is to buy gifts at sales throughout the year. Keep a list of what you’ve purchased and for whom, so you don’t double or triple up accidentally.
4. Buy online. It’s easier to comparison shop and ensure you’re getting the best deal. Some online retailers now offer free shipping for purchases over a certain dollar figure, or you can wait until Free Shipping Day on Dec. 17, when hundreds of merchants will be offering free shipping with guaranteed delivery by Christmas Eve.
5. Buy a few extra gifts. Those unexpected presents can really throw off your budget. Prepare by purchasing a couple generic for when you unexpectedly have to reciprocate or need to bring something to a party. Gift cards, Christmas ornaments and bottles of wine are good choices that can last until next year, too.
6. Buy discount gift cards. Gift cards can be purchased online for less than face value at sites like GiftCardGranny.com, at 5 to 50 percent savings. (Full disclosure: the author founded GiftCardGranny as well as CouponSherpa.)
7. Encourage Secret Santa exchanges. Rather than buy gifts for everyone in your family or office, suggest drawing names so each person shops for just one person.
8. Make it yourself. Homemade gifts can be every bit as nice as store-bought, while providing that extra personal touch. The Internet is packed with craft ideas and complete instructions.
9. Don’t shop for yourself. It’s so tempting to pick up a little something while shopping holiday sales, but that’s budget-busting behavior. If you must, avoid the “one for you, one for me” mentality by including money in your budget to spend on yourself during after-Christmas sales.
10. Donate to charities. Non-profit organizations have seen a major drop-off in donations, so why not give money to your friends’ and family memebers’ favorite causes, in their name?
11. Skip the fancy wrappings. Skip the Martha Stewart projects and keep it simple. Dollar stores carry bags, wrapping and all the trimming for just $1.
12. Skip the Christmas cards. When you add up the cost of the cards and postage, you’re looking at a big-ticket item. Consider skipping the cards this year, trimming your mailing list down or sending postcards, which cost less.
13. Don’t procrastinate. The longer you wait, the more likely you are to overspend. Wait to shop until the week before Christmas and you’ll grab just about anything that will do. Start early, get ‘er done and have a happy holidays.

Luke Knowles is co-founder of CouponSherpa.com and the iphone application with the same name. Luke also created The Frugals, a family of money-saving superheros who are on a mission to save the money in your wallet using coupons, discount gift cards, freebies and sweepstakes.

Tags: deals, holidays, shopping, spending, tips