Spending guide to curb splurging

It’s easy to overspend during the year-end festivities, what with annual bonuses in hand and sales galore at the malls and department stores. Here are some budget-friendly tips.

 Use cash Try not to put all your purchases on your credit card, especially if you’re doing all your shopping at the last minute. Using cash helps you to stay within budget as you will be buying only what you can afford. Shop online It pays to compare prices when shopping, not only for the festive season but also at all times, and the Internet offers opportunities for you to compare prices and get bargains. Irra Core, a working mother, says aside from not having to go to the physical store (and contend with the crowds), there’s the savings made on parking charges and petrol.

 Online retailers such as www.bookdepository.com and www.asos.com offer free shipping, and on top of that, with the current favourable exchange rates, items bought through online US-based stores may be cheaper than those available in Malaysia. Some online retailers even gift-wrap your purchases, which is an added plus. In addition, some online retailers also offer coupons for additional discounts for subsequent purchases. Cash in on reward points Put your credit card reward points to good use by redeeming shopping vouchers or gifts. Although it’s not really savings, since you’re already using your credit card throughout the year, you may as well put the reward points accumulated to good use, says Core, who often saves up the reward points for shopping vouchers that she then uses for gift purchases. Know what you’re buying With all the sales, deals and offers at the end of the year, it’s easy to be blinded by so-called store bargains. So, it’s important that you know how much things cost and what you’re getting for that price, especially when it comes to electronic items. For instance, you may come across an attractive deal for a particular product but it may be an older model or is missing some features or specifications.

 Scale down You don’t need to get a gift for everyone, especially colleagues you hardly know or speak to, or relatives twice or thrice removed! Avoid giving out of guilt or over-giving — just because you received a gift from a near stranger, or received an extravagant gift from a friend, does not mean you have to reciprocate in a similar fashion. Also, bear in mind that gifts need not be expensive, as at the end of the day, it’s the thought that counts. Make your own A less expensive but meaningful gift option is to make your own presents — whether it’s edible goodies like jars of preserve, cookies and cakes, or crafted items such as soaps and candles. If you’re baking, opt for something seasonal like Christmas cookies or pumpkin spiced bread, suggests Core. “And it’s really cheaper because you can buy all the ingredients in bulk and then set aside an afternoon for baking and wrapping. It involves time and commitment, but you are adding a personal touch to gifting, which is always nice,” she adds. You can also make your own decorations or embellish run-of-the-mill items. For example, instead of decorative candles, buy simple pillar candles and dress them up with pushpins and ribbons. Entertain wisely When it comes to entertaining during the holidays, many swear by potluck. “Have a theme and when your guests ask what they can bring or how they can help, suggest that they bring something from the menu and if they don’t see anything they can make or bring, they can bring a bottle of their favourite wine,” says Core. Similarly, if you’re invited to parties, ask the host or hostess what you can bring. But if potluck is not your cup of tea, consider scaling down the entertainment. Instead of planning a big bash, opt for a more intimate dinner party with just the family and close friends. If you like to serve wine, start stocking up throughout the year and if you travel often, this is when all the duty-free shopping will pay off!

Set a budget Determine how much you are prepared to spend this holiday season — whether it’s for gifts, entertainment or decorating. Set a budget based on how much money you have available. If you have many gifts to buy, then it’s also a good idea to set a limit on how much you’d be willing to spend, whether it’s per item or per person. Plan and budget for the holiday expenses at the start of the year by setting aside some money every month to be used during the festive season. It may take some resolve to put money into the holiday kitty each month but you’ll be glad you did come December! And as with any budget, you need to be disciplined and stick to it. Shop for gifts throughout the year Don’t wait until the 11th hour to get your Christmas or New Year shopping done. Whenever you’re out shopping or travelling, keep an eye out for great gifts. There are also bound to be a few sales during the year, so take advantage of them. A gift picked up from your holidays abroad not only makes a unique present but also shows that you were thinking of the recipient during your trip.

 Keep track of whom you’re buying for and what you’re getting them, advises Cynthia Yap. The busy working mother of two organises her gift shopping with a spreadsheet that has the names of recipients in one column and their ideal gifts, based on their likes and interests, in a corresponding column. This ensures that she doesn’t repeat a gift the following year, she says. Track how you fared this year Once the holiday dust has settled and all that gift giving and entertaining is done, track your expenses for the holidays. If you were on budget, make it your goal to decrease your spending next year. But if you’ve overspent, go over your expenses and see where you went wrong so as to avoid making the same mistake next year.

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