Shopping for gifts during the holidays can cost you a bundle of cash. Knowing what it takes to limit those impulse purchases can save you money during critical economic times.

Regular buying on impulse will skyrocket any type of money management system. If you are one of those shoppers who finds, too often, that items you don’t need have just followed you home from the store, then you’re one of many millions of people who have the “Impulse Buying Syndrome.”

Amazingly over 40 percent of all in-store purchases are completely unplanned. If you spend $50 a week in the grocery store, there’s a good chance at least $20 of that will go for impulse items. That’s $1,040 a year!

Retail merchandising techniques encourage impulse buying and certain products are sold largely on their impulse appeal; it is no accident that such items as candy, batteries chewing gum are displayed at the checkout counter.

If you carefully plan your shopping in advance (make a list and stick to it), you’re much less likely to react on impulse. Another proven way to combat impulse spending simply is to pace yourself when shopping, especially the during the holidays.

Before making a major purchase, it is essential you research the product and have an idea on what the item should cost. setting a fixed amount aside (mentally or actually) for that particular purchase.

Before making a purchase, ask yourself:

1. Do I really need this item?

2. Can I really afford it?

3. Have I done enough comparison shopping?

4. Is now the best time to make this purchase?

5. Should I pay cash or go into debt on the installment plan?

6. Should I use my credit card?

7. Is there a less expensive way to borrow the money?

A prime time to shop for many expensive consumer goods is always after Christmas. Big post season sales start in January, but February can be even better for shopping. It’s in February that consumers begin to receive their deferred-payment bills for goods that they charged at Christmas. They make a point NOT to go shopping. Most retailers anticipate the corresponding drop in sales and mark inventory down to keep it moving.

This is When You Make Your Move!

You get nothing extra for the additional money you spend. That money becomes a higher gross profit to the retailer, extra cash in their pocket, and less for you to invest or to spend on yourself or your family and friends. Put yourself in control of your purchases rather than letting merchants, other people, powerful advertising, or random impulses dictate how much or on what you should spend.

Take advantage of seasonal fluctuations in retail sales or on the internet as well. Buy a new car when dealers advertise rebates or low-interest financing or when you can get an attractive loan in terms with your bank. Buying in the late fall, when dealers offer major discounts on existing inventory to make room for next year’s models. Make Sense?

Most shoppers know it pays to buy your wardrobe out of season. you can predict shifts in demand for many goods and services and structure your spending accordingly. Most items such as electronics, furniture, heating/cooling systems and most other items move in seasonal cycles.

If you really want to control impulse buying, especially during the Christmas Holidays, think about the lost money that you will never recover. Plan ahead and you will save you a lot of money.

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In order to survive in today’s economic climate, it is essential to surround yourself with smart people, and practice sound business management at all times.

The most important, is to know the direction in which you’re heading and document your progress on a daily basis in that very direction. Be aware of what your competitors are doing and practice good money management at all times. All this will prepare you to recognize potential problems before they arise.

Amother very good business practice, but few business owners do, is to methodically build a credit rating with your local bank. Particularly, when you have a good cash flow, you should borrow $100 to $1,000 from your bank every 90 days or so.

Simply borrow the money, and place it in an interest bearing account, and then pay it all back at least a month before it’s due. By doing this, you will increase the borrowing power of your signature, and strengthen your ability to obtain needed financing on short notice. This is a kind of business leverage that will be of great value to you if or whenever your cash position becomes less favorable during a recession period.

Whatever business you’re in, by now you have found that most of your customers have the money to pay at least some of what they owe you immediately. To keep your cash flow current and the number of accounts receivable in your files to a minimum, you should implement all types of communication (phone, fax, email, direct mail letter) and ask for some kind of explanation why they’re falling behind.

If you develop such a habit as part of your operating procedure, you’ll find your invoices will magically be drawn to the front of their piles of bills to pay. While maintaining a courteous attitude, don’t be hesitant, or too lenient when it comes to collecting money.

Your business documents should reflect your way of thinking, and should be maintained to generate information according to your policies. It will be wise to hire an outside accounting firm to figure your return on your investment, as well as the turnover on your accounts receivable and inventory.

Such an audit or survey should focus in depth on any or every item within your financial statement that merits special attention. This way, you’ll probably uncover any potential financial problems before they become readily apparent, and certainly before they could get out of hand.

In conclusion, if you can manage the money first, the rest will follow! While you may think you cannot afford it, be sure that you don’t short change your self on professional services. This would apply especially during a time of emergency.

Anytime you commit yourself and move ahead without completely investigating all the angles, and preparing yourself for all the contingencies that may arise, you’re skating on thin ice. Regardless of the costs involved, it always pays off in the long run to seek out the advice of experienced professionals before embarking on a plan that could ruin you and your business – forever.

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The only one who will ever truly put your financial well-being first is you. When you arm yourself with facts, and you develop your money-making strategies, you’ll see that it is much less of a chore (and much more fun) to take control of your finances than you might think. You can make yourself a better shopper and that’s what it’s all about.

1. Be persistent, but cordial. When you aren’t getting the attention, service, or value you think you deserve, let someone in charge know about it. Don’t give up easily. Continue calling, writing, or showing up in person until you receive satisfaction.

2. Learn the return policies of the stores you shop. Make sure you retain the documents that will allow you a full refund or exchange if you need it.

3. Watch for “after-the-fact” sales on items you purchase. Some stores will refund the difference in price.

4. Shop outlet malls cautiously. You may live too far away to return an item you purchased there. So be sure of fit and quality before leaving an outlet store.

5. Make certain an outlet is really an outlet. A true outlet is a store that sells a manufacturer’s merchandise direct to the public. In other words, there’s no retailer to take its profits. So you can, for instance, buy Sears power tools at that company’s outlet at prices that are 20-percent less than you could buy those same tools at a general merchandise retail store.

6. It’s the price, not the markdown (“reduced 30%) that you’re interested in. Even after a markdown, an item may be higher in price than a similar item at another store.

7. Shop early in the day. If you’re there when the store opens in the morning, you’ll usually get better service, which can translate into bigger savings.

8. Make friends with salespersons. They can alert you to upcoming sales, or they can hold items on sale until you get there.

9. If you’re offered a refund or store credit for a returned item, take the refund. With a credit, you are letting the store hold your money for an indefinite period – and maybe forever.

10. For apparel, shop off-season when possible. By doing so, you can save 30 percent or more on coats, up to 50 percent on suits (both men’s and women’s), more than 40 percent on sweaters, and about30 percent on pants.

11. For fruits and vegetables, shop in-season. Plan your meals to take advantage of plentiful supplies of fresh foods (including meats).

12. Before you buy a refrigerator, television set, or other big ticket item, check stores with a “price-that-can’t-be-beat” guarantee. Then comparison shop at other stores. With proper documentation (tags or advertisements), you’re always assured of the lowest price.

13. Avoid so called “bells and whistles” on electronic equipment and appliances. Most will be rarely used, and they’ll add to the cost when purchased and when repairs are needed.

14. You can save more than $100 a year in fees be selecting a checking account with minimum balance requirement that you can, and do, meet. Compare banks by learning the fees they charge and the fees they could charge (for an overdraft, for example), then go with the bank where you
can save the most. If all things are about equal, go with the bank that’s most convenient to your home or work-place.

15. Take advantage of loss leaders, but be careful that while shopping for the loss leader products you don’t buy something else you really don’t need.

16. Never pay full price unless you are sure you have no other option. It never hurts to ask for a discount.

17. If you need an item urgently – especially one that you may use only once or twice – consider borrowing it instead of rushing out to buying it.

18. Rental car companies offer various insurance and waiver options. Check with your insurance agent and credit-card company in advance to avoid duplicating any coverage you may already have.

19. A home energy audit can identify ways to save hundreds of dollars a year on home heating and air conditioning. Ask your electric or gas utility to conduct this audit (which should be free or cost only a reasonable amount). If not satisfied with such an audit, find a qualified professional.

20. Workplace savings: Bring your lunch to work. Join a car pool or take public transportation. Cut back on eating lunch out.

Only you can decide which type of investment, or which mixture, is right for you. For most, all these savings deas, if implemented, can amount to nearly $10,000 a year in savings.

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