Blog: Staying within budget during holiday shopping

We are just a few weeks away from the year’s highlight holidays of Thanksgiving, Christmas and New year. One of the major activities that most of us undertake religiously during this time every year is shopping.

Now, when it comes to shopping, our philosophies, patterns, budgets, plans, requirements etc vary hugely. One common thing however is at the end of it most of us are left with a doubt if we were wise in our shopping. Notwithstanding all other parameters and benchmarks, the most important thing then is ending the holiday shopping season with a feeling of fulfilment and a sense that we put our money to good use.

How do we ensure that we get to experience satisfaction at the end of festive shopping and not frustration on overspending or pain of paying off exorbitant EMIs. Here are some easy tips to help you with this

Keep a list – Having a list of things made before the actual shopping keeps you focused and keeps you off the tendency to ‘go with the flow’ which is the riskiest way to shop. When we have a list, we buy what we want and when we spend on it methodically, we have an idea of what is left over and can proceed cautiously without busting the budget. When we shop without a plan, the chances of ending up buying low priority things and missing out on important needs is also high. Plans and lists have a huge role in your holiday shopping like it has in everything else.

Buy fewer stuff, but good stuff – Save up and buy one good quality, well reviewed, winter jacket rather than 2 or 3 poor quality ones. It might appear wise and like a good bargain when you see that you are spending a fraction of the amount you planned. But then, with a poor-quality purchase or a fake product, you end up repeating the spend very soon because they are never durable. My favorite story is of a mountaineer friend who bought a top-quality backpack about three decades ago and almost got thrown out of his home for such a massive spend when he could hardly afford it. It cost him as much as a few months of his salary. But then, when we travel together, I still see him using it, while I have replaced my backpack at least thrice in less than a decade

Negotiate prices where possible – I remember seeing an advertisement tagline of a satellite TV service provider which goes like “what’s harm in asking?” Yes, that’s right! Wherever possible there is no harm in negotiating for a better price. The seller wants business and you want the best price possible and most often there is a middle space where both your needs can meet. So, if you ask nicely and be persistent about it then, chances are that you could get what you want at a lower price. A penny saved is a penny earned. There is no shame in negotiating. Now if the seller doesn’t budge, it is also an assurance of the quality of what he is selling. The confidence he has in the quality and goodness of his product is reflected in his reluctance to negotiate. So, it is a win-win both ways.

Wait for an end of season sale – Fortune favors the patient more than the brave is what I would like to believe. The best thing about year-end is that there are going to be many end-of-season sales in almost all things you are looking at buying. If it is a non-urgent item and if it is a long-term investment, it always makes sense to keep a tab on price movement, look for bargains and eventually buy it during a sale time when you are sure to get better rates.

Fix the maximum spend budget on items – Unplanned purchases without any idea as to where your family’s finances stand, could be very unwise. Just because the credit card offers a revolving credit period option doesn’t mean the flexibility it offers is not without a deadline. Ultimately you have to pay for it and out of your existing income or savings. From this perspective it makes sense to have a proper income and expense account for family expenses as well. You then have a clear idea of the disposable income and budget your purchases accordingly.

Compare online and offline shopping deals – Now with pretty much all things you need being available online, and at very competitive prices, ignoring the online option is a risk you can’t afford. If it is a branded product and you are assured of no difference in quality online or in a shop, it becomes easier to compare and make your choice. Here again what you need is patience to research. You might not be able to get something immediately or be instantly gratified, but when you make a well researched buy, you can be sure that you get the best possible deal and that you did not waste your hard-earned money.

Look for out-of-the-box options – Especially when it comes to gifting during holidays do not limit your focus to the common gifts or gifting style. Instead of gifting objects you can consider gifting experiences which will be valued better and it can sometimes be cost effective too. Regifting duplicates that you have, or good products that you have no use of, gifting homemade or handmade things, using recycled packaging are all sensible ideas to promote thrift. You can also consider ordering the same item in duplicate if it is cheaper when bought in bulk quantities. You can try this if it could be a useful gift appreciated by more receivers than one.

Planning personal finance is an important skill to develop. Your professional success, income and savings will all add up to naught if you are not careful about personal finance. The same works for everyone in your team irrespective of income levels. If you are looking for any help or advice in personal financial planning or mentoring for your team or for yourself do write to us at harish@harishrao.world to know how we can help you with it. We understand the difference the right mentoring and training can make to a person’s growth. We would love to work with you on this or any other coaching needs you may have!