Christmas is around the corner

Santa

Are you like most people who wait until the Christmas “sales” to start your Christmas shopping. If you are you’re being ripped off. One of the tricky sales techniques that retailers use is what is called price anchoring. They display the item at an inflated price for a number of weeks and then “BAM” it’s on sale for half price, what a bargain! You think you got a bargain and the retailer collects on the price they wanted anyway.

The same can be said for the buy one get two deals. Do you really think the retailer wants you to SAVE? No, they want you to spend so they make you believe you are getting a good deal by buying in bulk. You might have bought one item for twenty dollars but the thought of buying two at thirty will make you believe you just saved ten dollars. Not really, you just spent ten dollars more than you planned on.

Christmas comes around so quick that most of us don’t put any extra money aside for the gifts and therefore, with good intentions, use the credit card that we intend paying off straight after Christmas, right? The problem these days with credit cards is the “Tap and Go” capabilities of the card that we don’t pay attention to. Do you always look at the screen before you whip out your card? How quick it is to spend beyond your budget.

Start NOW. Set your list of worthy receivers and put a price limit beside each name. You might want to add all the extras such as new decoration, meals, accommodation if you are travelling etc. Now, that is your Christmas budget. You have around twenty four weeks until Christmas so divide your Christmas budget by your pay frequency such as twenty four in this case. Now, using all the tips and tricks I have shares with you over this blog I want you to implement a savings plan, workout your sacrifices and move the savings away from your normal bank account. Get the mind-set that you will NOT use your credit card this year.

And better still! As you save enough money each week to meet a gift receiver’s limit, search out a bargain early and stash it away. Another trick is to do on research. Decide what type of present someone will get and search online catalogues for the price comparisons. Saves all the walking.

If you have been reading my blog for a while you probably have an understanding by now of making little sacrifices that benefit your long term saving goals. This is no different. It’s a new challenge that will test your new experience of how you look at money. It’s all about having a goal and making the necessary changes to make sure you arrive at it. Wouldn’t it be an extra special Christmas feeling that you planned ahead and saved the necessary money to provide gifts and gratitude’s to your family and friends without the pressure of using credit?

This is your Christmas Challenge:

  1. Write out your list of expenses
  2. Divide the total by the number of pay period left
  3. Open a separate account or stash the money in a money box you can’t easily open
  4. Pat yourself on the back for a job well done

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