The January credit card bills are looming. Now what? No matter how doggedly we tried cutting back our holiday spending, the unanticipated $50 gift here and there really added up. This month we’ll literally be paying for those last-minute purchases, plus the inevitable after-Christmas impulse buys.
Here are 10 ways to get back on track and rein in the shopping budget for 2007:
Sell gift cards
According to the National Retail Federation, Americans were expected to receive gift cards totaling more than $20 billion for the holidays. Such cards are rarely redeemable at stores for cash. But at plasticjungle.com, you can sell your unwanted gift cards or trade them for gift cards to stores you prefer.
Sell stuff on eBay
It may be too chilly for a yard sale, but it’s a great time to purge your unwanted gifts, unworn clothing and other semi-valuables on eBay.
Plan for sales
Mark these sales on the calendar as a general guideline. January is a good time to buy sheets and towels, winter gear and holiday items. February brings consumer electronics, coats and cashmere. March is spring clothing and wedding gifts. April means wedding gowns, and May is gifts for Mom. June is gifts for dad; July, summer clothing and shoes; August, fall clothing and school supplies; September, fall clothing, outdoor sporting goods and patio items; October, cars; November, early holiday gifts; and December, fall merchandise, sweaters, holiday decor, winter gear.
Stay busy
You know that cooking or tap dancing class you’ve always wanted to take? Sign up. Keeping busy can keep you away from stores.
Watch a movie
Will Smith’s current flick, “The Pursuit of Happyness,” will have you wondering how you’d fare for months without a paycheck, and how much we take for granted.
Ditch the plastic
If you have a credit card balance larger than your checking account, it’s time to cut up the plastic–at least until you can pay off the full balance each month. If it helps, calculate how much you’ve paid in late fees and interest to your credit card company in the past year, then imagine ripping up a pile of cash in that amount.
Track your spending
For at least one full month, track every penny you spend. This works best using an Excel spreadsheet, but just jotting dollar amounts will help you visualize exactly where your money is going. Add up everything you didn’t need, and make note of it.
Buy nothing for a day
Pick a day–any day–and try to make it through all 24 hours without spending a penny.
Save more
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Start funneling more into savings. Your bank can automatically divert any amount from your direct deposit paychecks to one or more savings accounts. To start, try $20 a week. By the end of the year, you’ll have socked away about $1,000 without much pain.
Pack a lunch
Packing just one lunch a week can save $28 a month, or more than $300 a year!