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If you're living on a fixed retirement income, chances are you don't have limitless funds to fritter away on holiday gifts. Come to think of it, few of us do. Yet, you wouldn't know it from some of the statistics out there: A few years ago, the US Bureau of Labor Statistics tells us, holiday spending increased among Americans faster than average personal income for the previous year.
Make Big Plans Now for Next Season RAM Research estimates that the average consumer has spent more than $1,100 annually on holiday giving over the past several years, so it makes sense that you need to save ahead of time just for this time of year. Though it may be too late for the 2000 season, come January your first step toward a happier holiday next year is to save enough to purchase gifts and holiday trimming without turning to credit cards - because if this balance isn't paid off, interest charges increase the total spent. The average consumer takes six months to pay off December's bills (according to RAM Research), perhaps due to the interest that can pile on from month to month. If you need to, put something away weekly or monthly into a special savings account just for holiday expenses. Your bank or credit union probably offers a "holiday club" just for this occasion. Another terribly simple move that could pay off big is to sit down and write down how much you want to spend on each recipient on your gift list, along with what you'll put toward gift wrap, cards, and other accessories. If your spending would outdo your holiday budget, start closing this gap by looking at small, painless ways to save. Think about how many videos you rent (and never watch), and the number of books you purchase that could have been borrowed from the library. If your holiday savings and budget still don't match each other, plan instead to shop mostly at discount clubs, bargain outlets, and consignment shops. There are also other ways - between this holiday season and next - to give everyone something that will delight your recipients and your wallet. Grab it - With weeks left until Christmas and Hanukkah 2000, there's still time to make that office grab of work days gone by work for groups of family and friends. Suggest that everyone in each group does a grab, picking at random one person to buy for, within an agreed-upon dollar limit. Not only does this save everyone money, but it also economizes on that other precious commodity of our new millenium - time. Everyone will thank you for it. |
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