Welcome to Frugal Fridays where we share money saving tips, discuss living frugally and generally talk about personal finance issues. We are heading into the biggest shopping season of the year, so it's time to look at how to survive this season with both budget and sanity intact. Last week, Annie Jo did a great diary on finding (and making) frugal gifts. This week, my emphasis will be less on saving money and more on saving time and aggravation. Hopefully, these suggestions may help you make it to the new year while still retaining a modicum of holiday cheer.
Some of these ideas I have frugally recycled from a previous diary on internet shopping, so don't be surprised if you experience deja vu:
Now I love shopping so this is a great time of year for me. I love wandering from store to store looking for ideas and bargains. I love looking at the window decorations. I love that stores are open late so that I can shop until nigh on midnight. I even love the cheesy Christmas music. But even I find my stress levels approaching meltdown stage when I am circling the parking garage for the Nth time looking for a spot, or when I find myself elbowing my way through crowds of people standing between me and that rack of shirts I need to look at or, worst of all, when I am paralyzed by indecision when trying to select the perfect size, color or style for someone. I can only imagine how terrible this season must be for those who hate shopping under the best of conditions.
Shop in Your Pajamas
Obviously, the best way to avoid the hassle of fighting crowds is to shop from home over the internet. This is particularly helpful if you are buying gifts for people who live a long distance away. You can eliminate the hassle of wrapping and shipping at the same time you eliminate the hassle of fighting mall traffic.
It's important to try to protect yourself against identity theft whenever you use your credit cards, but it is doubly important when shopping over the web, since you have no idea who will be processing your sale and how securely they will treat your data. I strongly suggest you always use a one-time-use credit card number when shopping remotely. These numbers are virtually useless to anyone but your intended merchant and even if that merchant turns out to be nefarious, there is no way for the thief to determine your true account number so you don't have to worry about the hassle of closing your account and replacing your cards. Check with your card issuer on their website. Most of them have a really easy method for generating these. Look for terms like "shopping security" or "internet safety".
Finally, it's always nice when you can do something good, especially when it costs you little or no extra money or effort. Maatiam (formerly called Free Pledge) is a site you can use to divert a portion of your purchase price at many on-line merchants to the non-profit of your choice. This doesn't cost you anything, it's a discount offered by the merchant. If you don't have a non-profit that you want to support, may I suggest the Anita Borg Institute for Women and Technology. Another alternative for helping while shopping is Better World Books. This is an online bookstore that donates a portion of every purchase to programs that support literacy. Their selection isn't as extensive as the big guys, but I try to check them first.
For more information on how to find and evaluate merchants on the web, check my old diary: How to Shop When You're a Dog (No dogs were referenced in that diary. The title is just a play on this cartoon.)
Minimize Your Effort
Another great tip for easing shopping stress is to buy everyone on your list the same gift. Finding something that everyone enjoys (or needs, but doesn't have) can be a great way of solving all your shopping dilemmas in one fell swoop. This works best if you are are not all in the same place when opening the gifts, but even then, it can be fun if everyone opens their package at the same time.
For example, last week, sillia suggested headlamps from LLBean. My stepfather often gives everyone in the family the same shirt (which makes for a cute family photo each year). One year, I gave everyone first aid kits (small ones for single adults and big ones for large families). Another year everyone got a DVD of Serenity. (That was a strictly selfish move on my part since I loved the movie and the only hope for a sequel is if the DVD sales are phenomenal since it didn't do so well in the theater.) I may make up disaster preparedness kits for everyone this year. (Anyone reading this who is on my Christmas list, please disregard and ignore that last sentence.)
Cash is King
We all have that one person who is impossible to shop for. Maybe it's because they find an objection to every gift you've ever given them or maybe it's just that as soon as they see something they want, they buy it for themselves. In this case, it may be best to just give them cash or a gift card and let them shop for themselves. If you are worried about the impersonal nature of such a gift, there are still ways to make it seem a little more thoughtful (and after all, it's supposed to be the thought that counts, right?).
One approach I usually take is to think of something I'd like to get that person, usually a book or a movie or a CD. Then, if I'm not truly certain that is something they'd enjoy, I get a gift card to a store that carries that item and write on the card, "I thought you would enjoy [insert book title here], but in case that's not your cup of tea, please use this card to buy something different." That way they know I was really thinking of them, but they are not saddled with yet another copy of a book they've already read.
Gift cards can be incredibly convenient for both givers and recipients, but they do have some drawbacks. A huge amount of money spent on gift cards goes unclaimed every year. Make sure that the store you are buying it for is the one that your recipient regularly shops at since in order to get the full value off the card, they will need to spend more than that amount. Also, some cards have expiration dates and/or fees. Rules and regulations for such cards vary by state and by type of card (whether it is accepted at a single store or if it is a credit card type gift card that can be used most anywhere). Check carefully before you buy.
Also, some people just don't remember to carry such cards and redeem them. If you know that you are giving to such a person who will let the card languish in a drawer somewhere, you may want to just go with the old standard: pieces of paper with pictures of dead presidents on them. One idea that I heard from my mom for a unique and special way to give cash is the "cash salad" she will sometimes make for a housewarming gift: take a salad spinner or large salad bowl; fill with $1 bills (lettuce); roll $5 bills into balls and wrap in red cellophane (cherry tomatoes); roll $10 bills into balls and wrap in white tissue paper (onions); etc.
Not All Shopping is Mall Shopping
If you enjoy shopping in person, but hate malls, here are some other opportunities you can explore:
- Craft Fairs: Although we tend to see these more in the summer in my area, right before Christmas you can find some fairs where artists sell directly to the public. Prices are often lower than you would find in boutiques for the same quality merchandise. You can check with your church or school or check your local newspaper for listing of community fairs.
- Sample and Overstock Sales: Lots of wholesalers will open their doors to the public for one or two day sales this time of year. Here is an extensive list of such sales in the San Francisco area. If your local newspaper doesn't create a similar list for your area, ask friends and family if they know of any such events.
- Open Studios: You can often find unique items made by very talented artists at local "open studio" events. Rather than all the artists bringing their work to a single location, as they would with a craft fair, instead the buyers are given maps and directions to go visit each artist in his/her studio (often a back room or shed in their house). It's a really neat way to meet the artists and have a chance to chat with them a bit. Again, check your local newspapers or try googling "open studio" [your city name] to find any close to you.
Frugal Tip of the Week: It's tax time! No really, I'm serious. Now is a really good time to do a preliminary assessment of your tax situation before the end of the year. Look over your income and expenses this year, as compared to last. You still have time to chage your 401K deductions to make sure that you have fully funded them by the end of the year. If you had a surge in income this year, you may need to make an extra quarterly payment to the IRS before Jan. 7 15 (hat tip to sardonyx in the comments) to avoid late payment penalties. If you itemize your deductions, you may want to make any deductible charitable donations before the end of the year.