From House To Home

Tis’ the season for giving and, for many consumers, the temptation to overspend can result in a mountain of not-so-jolly bills in January that may take months to pay off.

According to the National Retail Federation (NRF), American shoppers are each projected to spend $738 this year on holiday gifts, decorations, cards, food, and candy.  Holiday spending in November and December is expected to reach $438.5 billion and will likely account for almost 20 percent of all retail industry sales in 2006.

With a little advance planning and discipline, you can survive the holiday season without financially overextending yourself and kick off the New Year free from needless debt.

Set Your Limits

• Establish your holiday budget and be vigilant about sticking to it.  Determine a realistic amount you can comfortably afford on gifts, entertainment, shipping, decorations, photos, gift wrap, food, and drink.
• Open a money market or savings account in January and have a pre-determined amount automatically transferred from your checking account to build your holiday nest egg while you earn interest. 
 
• Swap names or agree to a set spending limit with friends and family for presents.  Alternatively, make a charitable contribution that is tax-deductible, instead of buying gifts. 

Be A Savvy Traveler

• If your plans call for air travel, compare fares online for major carriers through Web sites such as Expedia or Orbitz, as well as individual airlines’ sites.  Book online as early as possible (at least 30 days in advance). 
• Consider bundled travel packages that include car rental and/or hotel for additional savings.
• Fly on the actual holiday itself to snag a better fare. 
 

Shop Like A Pro

• Shop early and purchase gifts in cash or via debit card to control expenditures.  Reserve credit card usage for online/catalog shopping and travel only. 
• Save time and a trip to the post office by shopping on the internet.  Many sites offer free shipping and will usually gift wrap and/or send a card on your behalf.
• Instead of traditional greeting cards, send free holiday e-cards from Web sites like Hallmark, Yahoo! Greetings, or iCards from Apple.  Or go with a postcard instead. 

Leverage Points And Miles

• Redeem credit card reward points or convert frequent flyer miles for gift certificates, electronics, magazine subscriptions, and other retail gifts.  Points.com integrates many reward programs, allowing you to buy, give, earn, and maximize points and miles.
• Research and take advantage of any partner discounts, offers, or perks your company may offer its employees.
 

Last, remember that the true spirit of the season doesn’t require that you drain your wallet to keep up with the Joneses.  Just say “Bah-Humbug!” to the holiday hangover of unnecessary debt, and resolve to be a smart spender this year.

Melissa R. Hoberg is an Atlanta-based freelance writer who loves the thrill of smart shopping and sharing her tips for getting the most bang for the buck.  Her work regularly appears in from house to HOME and Atlanta Magazine, among others.