Smart Shopping: 5 Tricks to Avoid Impulse Buys

We’ve all done it: splurging on an impulse buy, only to come home to a “what was I thinking?” reality check.
A new survey by Harris Interactive and the National Endowment for Financial Education says a whopping 80% of American adults admit to making impulse purchases in the past year, either for themselves or for their home. Not surprisingly, two-thirds say they later regretted the purchase.
The fact is, the pressure is on when we shop. There are numerous factors at play - from loud, fast music to the beautifully packaged products to attractive smelling fragrances in the store. All excite the dopamine (aka “happiness”) levels in the brain and entice us to buy that very chic, but unnecessary leather jacket. We also tend to shop at the last minute, particularly around the holidays, which leaves us with little time to debate whether a purchase is really worth it.
Here are five tips to help you gain control during your next shopping trip.

1. Stick to Your List

When you narrow your options, you simplify the decision making process. Making a shopping list - and sticking to it - can be one of the best ways to avoid impulse shopping. And be specific: Instead of considering all 200 winter coats in the department store, zero in on the few that meet your needs and fall within your budget. Otherwise, you may be tempted to spend more than  you should.

2. Get Some Air

Give yourself at least 10 to 15 minutes to disassociate your mind from whatever it is you’re considering purchasing, whether you’re shopping online or in a store. Put the item in your shopping basket online, or leave it at the sales counter while you take a lap around the mall. Without a sense of urgency or the pressure to buy, you can make a more rational decision.

3. Be Critical

Before you pull out your wallet, ask, “What are the trade-offs?” If you have ample cash in the bank, then you can afford the purchase. But what if buying a new laptop is the difference between going to the Bahamas for spring break or a staycation?

4. Phone a Friend

For big-ticket items, it sometimes helps to grab a second opinion. (And no, the salesperson’s doesn’t count.) You want to ask someone who understands your goals and can give you honest advice on whether that new sofa is worth the $1,200 price tag.

5. Use Cash

Using cash, rather than a credit card, may seem more painful. But if you can’t afford to pay cash, you might not be able to afford your new splurge, period. Actually watching our funds shrinking can be the very wake-up call we need to beat the impulse buy.

Free Online Courses from Top Schools

In the current economic climate, many of us are considering going back to school or getting an advanced degree, with the hopes of becoming more employable.  But it’s not always necessary to go back to school full or even part-time and spend tens of thousands of dollars to earn a degree. Sometimes all you need is a couple courses or a few weeks of instruction to enhance your resume.
To that end, there are numerous ways you can advance your skills for free, via online courses offered by some of the top schools and institutions in the country. That’s right - free. I rounded up some of the best courses and programs, smart ways to invest in yourself, learn something new and boost your bottom line.

Liberal Arts and Sciences

Whether you want to brush up on evolutionary biology, macroeconomics or international relations private, top-ranked universities from Harvard and Yale to Carnegie Mellon and MIT offer free online lectures - and, in some cases, full classes.

App Development

All the lectures from Stanford University’s 2010 winter course on how to develop iPhone applications are available online for free.  Stanford also posts several other courses and faculty lectures for free on iTunes.

Engineering

From chemical and biological engineering to electrical, mechanical and nuclear science, MIT posts undergraduate and graduate courses online for free. You can also download UC Berkeley’s undergrad lectures on mechanical engineering design.

Writing

Got a novel that you’re dying to write? The University of Utah has a free course on creative writing and MIT will teach you the basics of fiction. Aspiring journalists can also take advantage of Poynter’s News University’s free e-learning program that covers writing, editing,

Holiday Shopping Procrastinators: Stick to Your List

I’ve yet to start my holiday gift buying and don’t anticipate starting until well into December. I know...tsk tsk. But like it or not, procrastination is pretty widespread, especially this time of year. In fact more than 25% of us shoppers plan to be buying presents until the last minute this year, according to the NPD Group.
Partly to blame for our procrastinating ways is that we’re overly confident in our ability to find everything we need in a timely fashion. Behavioral experts call this a “planning fallacy.” We overestimate how successful our shopping will be and underestimate how much time it will take to complete our shopping. At least, that was the conclusion in a 2003 study published by Canadian researchers Roger Buelher and Dale Griffin specifically about Christmas shopping and procrastination. (Others might just call us “delusional.”)
Also adding to our last-minute holiday rush: busy schedules and the belief that we’ll necessarily snag the best deals in the wee hours of holiday shopping.

Stick To Your List

As Atul Gawande writes in his best-selling book The Checklist Manifesto, a simple checklist “overcomes failure … and makes up for our inevitable human inadequacies.” Hey, if lists have helped the rise of modern science and surgery as Gawande describes, then they can certainly help us accomplish our shopping goals both when we have ample time and when in a hurry.
Lists help us narrow our options. And that’s a good thing, especially when the clock is ticking. Studies show that when we give ourselves too many options it’s easy to get confused. We make irrational choices that we might end up regretting. Pulling from my experience as that kid in the candy store hurrying to pick something as mom tapped her feet, I can tell you that having rows of options is no fun - even if it’s rows of chocolatey goodness. With limited time and an abundance of choices, I almost always made a regretful decision, whining I should have gone for Milky Way instead of Three Musketeers on the car ride home. And I recall more than one Mother’s Day when I desperately opted for the perfume basket from Macy’s because I felt overwhelmed by the last-minute shopping experience. I paid more than I had planned, all for a gift that was just OK.
So before you head out to begin your holiday shopping - whether tomorrow, Black Friday or Christmas Eve, invest half an hour to create a thorough checklist: who you want to buy gifts for, the types of gifts you have in mind and a price range per gift. Have back-up gift ideas, as well, especially if you’re a procrastinator: By December 24 you’re sure to have fewer desirable options. Rather than springing for that $80 perfume basket in the department store because it’s already wrapped and you have no other ideas, you can refer to alternatives ideas on your list that you jotted down when you weren’t in a frenzy.
A few budget-friendly mobile apps that can help you manage your lists this holiday shopping season include Holiday Gift List ($1.99), Christmas Shopping List (99 cents), Juicy Christmas ($2.99).

New Year’s Resolutions: 7 for Your Money

Americans apparently have a bit more confidence in their own financial health (as if we couldn’t tell by the shopping stampede on Black Friday).

The evidence: A new survey by TD Ameritrade finds that 27% of us are less likely to make New Year’s resolutions about our personal finances this year than last year, saying health and relaxing are more important. Rather than “save more money” - a common goal for 2010 and 2009 - Americans now say they feel confident enough to return to a more balanced take on life, to focus on their families, career and health, in addition to their finances.

While that sounds good, it’s still important to save. And we don’t have to sacrifice our health or happiness to do so. Here are seven money resolutions that can improve your mind, spirit and bank account.

1. Be More Charitable

Studies show charitable giving fell in 2010. Whether donating to charity or treating your friend to a cupcake, giving is not only thoughtful but can make you happy. A survey of more than 600 volunteers by researchers at Harvard Business School and The University of British Columbia concluded that spending just $5 a day on someone else would make you more happy than spending that money on yourself. Not to sound selfish, but how does this help our bottom lines? Well, there’s always the tax deduction! Give to a legitimate charity and pay less to Uncle Sam on April 15.

2. Find a Money Buddy

It’s key to have a partner in your financial life who can knock some sense into you when you feel the impulse to spend or when you are ignoring your bills. It might be your best friend, sibling, or parent. Relay your goals to this person so that he or she can help remind you of them when your judgment gets cloudy. Turn to them for advice. We often assume that our financial strife is unique – the sooner you begin networking and discussing your problems with others, the sooner you’ll realize that others have been in your shoes and have persevered.

3. Stick to Cash

While it’s important to maintain good credit and using our credit cards responsibly helps to achieve that, keep in mind that credit card users tend to spend more money than if they used cash.  A recent Dunn & Bradstreet study found that people spend 12-18% more when using credit cards than when using cash. (Another study found that people who paid cash at the grocery store were healthier than their plastic-wielding counterparts.) And McDonald’s found that the average transaction rose from $4.50 to $7.00 when customers used plastic instead of cash.

The other reason I insist on using cash is because it keeps us honest with our money. We make better choices because we are forced to think twice or three times about our purchases, especially if we have to break big bills like a $50 bill. Bye-bye, impulse purchases!

4. Create a Money Zone

This is all about staying organized and clear of financial clutter. Find a space in your home - it could be a table in your kitchen, sunroom, bedroom, wherever - and design this space so that you actually want to go there to set goals, pay your bills and deal with budgeting. Surround your “money zone” with images of your goals, family and inspirations - all the reasons you should stay motivated. Have folders for all your monthly statements. Have a safety box for secure papers like insurance certificates, your deed, etc. And have smaller boxes for business expense receipts and warranties.

5. Establish a Rule of Thumb

As humans, we like rules of thumb because they’re handy. They help when we have trouble making decisions. We have diet rules of thumb - “no sweets during the week” or “no midnight snacking”  - and they help us stay on track. Some good money rules could be: “I won’t buy anything over $100 without consulting with my spouse or partner” or “No more open tabs at the bar!”

6. Automate

Save and pay your bills automatically. You’ll sleep better at night knowing you did. It’s less painful than taking money out of your paycheck yourself and depositing it in a savings account or handing it to your utility company. According to a recent survey by the Consumer Federation of America and the Financial Services Roundtable, 83% Americans say the most effective way to build personal savings is to automatically transfer funds from your paycheck to a savings account. Research also finds that people with the highest level of well-being had a high level of financial security. Many of them automated their payments so they didn’t feel the sting of the pain of payments.

7. Turn a Passion or Pastime into a Paycheck

Who doesn’t want to make more money in the New Year? One of the best ways to do that is to identify a skill or hobby that you’re passionate about and turn that into a revenue stream - teaching a foreign language, designing web sites, making jewelry. When you work a job you love, it won’t feel like work.

Save More, Spend Less: A 3-Step Plan

I recently received an email from a thoughtful reader struggling to kick his credit card habit and save money. I thought it would be helpful to share his plight, which I think many can relate to, and my advice.
Dear Farnoosh,
I have a bit of a problem with credit cards. My partner uses a credit card to purchase everything and pays it in full each month. I do that, too, however I scrimp everything I have at the end of the month to make the full payment. Basically $0 goes into savings, as a result. Using credit cards is also primarily how we spend when we travel as we earn miles on every purchase and then redeem them for travel flights … I want to feel like I’m contributing to our trips … What can I do to change my mindset to stay out of debt and stay on track?

-Christopher

Here is my three-step plan for Christopher, as he tries to cope with his credit card dependency issues and find room to save.

Step 1: Pay Yourself First - and Automatically

Make sure your employer is automatically depositing your paycheck into your savings or checking account. Then schedule a regular transfer of either an account percentage or a fixed amount (say, $200) to a separate online account each time.  This way you save automatically, before you get caught up with everything during the month. It’s painless.
I like online accounts for two reasons. One, they typically offer a higher savings rate than traditional banks. And second, because they’re virtual, it’s a little harder to access your funds. It’s like having a built-in savings motivator.  Some examples: SmartyPig.com, INGDirect and HSBCDirect. You can also comparison shop for the best savings rates at BankRate.com.

Step 2: Challenge Yourself to an All-Cash Existence

Give your credit cards a breather. For the next couple of weeks, when you go out shopping or out to dinner, leave your credit card at home. Go to the ATM on Sunday night and take out just enough for the week, then spend that amount and only that amount. Do this for 14 days. You’ll be challenged, but you’ll find you will make better spending choices when you give yourself limitations.
To make it more fun, challenge your partner to join you for a week of living on cash. You can both take out an equal amount of money - say, $100 - and the person who ends up with more money at the end of the week gets a prize (you two pick the prize).
Remember: Cash not only limits how much we spend, it helps us save an average 20% compared with when we use credit cards, according to year-long trials conducted by the National Foundation for Credit Counseling. And McDonald’s has found that the average transaction rose from $4.50 to $7.00 when customers used plastic instead of cash.

Step 3: Have a Talk With Your Honey

Talk to  your partner about your savings dilemma.  When you’re in a relationship, especially one where you are sharing some expenses, communication is critical. Ask for his advice. Ask for his support. It’s in both of your best interests if you are able build up your savings. He may have no idea that you are losing sleep over this. And who knows? He may have similar concerns.

Wedding Planning: 3 Financial Deal Breakers

For years I’ve been preaching to brides and grooms-to-be on the importance of staying within a reasonable wedding budget. Now, newly engaged, I feel some pressure to stick to my own advice and prove that it can be done.
As I type, my fiance and I are headed to the City of Brotherly Love, Philadelphia, to check out five potential event spaces in which to hold both our ceremony and reception. I’ve done some homework in advance of our trip and have a checklist of questions to ask each event manager, so that we can compare apples to apples. I’ve already made some interesting discoveries, which may become financial deal breakers … unless, of course, there’s room for negotiation.
Here are three specific questions  you definitely want to ask as you research reception spaces.

1. Can We Choose Our Own Caterer?

Out of the 10 or so event spaces we’ve looked into - from museums to hotels and restaurants - all have told us that they work with an exclusive catering service. (The restaurants, I get - but the museums?) This isn’t the end of the world, since many of the caterers had exceptional reviews, but it also means you can’t comparison shop - or taste - for the best service, since not all of the caterers offer tastings before you sign your contract.  Also, if you have special dietary needs, not being able to pick your own caterer may pose a problem. For example, a Jewish friend of mine who’s getting married next winter, fell in love with one event space - but because the caterers didn’t have a kosher menu, she and her fiance had to continue searching.

2. Does the Catering Include a Wedding Cake?

We found many catering services include the cost of a wedding cake - that you must choose from their bakery, at $10 to $12 per slice. What if you have a relative or friend who wants to make you a cake for your reception? Or what if you want to select your own bakery? We’re not even sure we want a wedding cake, anyway - I would be happy with cupcakes. Why must we pay for something that, to us, is discretionary? Can it be deducted from the cost? We shall see.

3. What Are the Ceremony Fees?

Space fees tend to run the gamut, anywhere from $1,500 to $5,000 and up. But don’t stop your research there. Ask what other fees apply. I discovered one place charges a ceremony space fee plus $25 per chair and an additional fee for using their sound system or speakers to play your ceremony music. That just seemed a wee bit predatory to me. Like, what is my alternative here? A standing-room-only ceremony with music playing from my iPod speaker?

Meanwhile: This story is to be continued. I look forward to posting more of my wedding planning discoveries in this blog. Please share your wedding financial successes (or disasters). We could all benefit!

Group Gifts: 4 Easy Ways to Collect Money

The items on Americans’ wish lists this holiday season are pricey - from iPads to flat-screen TVs to laptop computers. So it’s only natural that many will be teaming up to give these items as a group gift. A Samsung survey found that nearly 80% of respondents had chipped in for a group gift last year, either for a birthday or around the holidays.
If you’re the leader of the pack and in charge of collecting dues, life’s gotten a lot simpler recently. Here are some great Web solutions that can help you easily collect money from a group, all without the hassle of knocking on doors, harassing emails, or checks in the mail.

Pay It Square

Pay It Square uses PayPal’s payment system. Organizers create a Web page to explain what they are collecting money for, list the friends they want to collect money from, and set a contribution amount per person. The group can pay using their credit cards, PayPal accounts or bank account transfers, although the organizer will need to have a PayPal account. Contributors pay a transaction fee of 99 cents or .25% of the payment amount (whichever is greater) if they use an online bank account or PayPal; if they use credit cards they’ll pay a fee of 2.9% plus 30 cents.

ChipIn

Another PayPal-powered site is ChipIn. Group gift organizers can either embed a ChipIn widget on their own Web sites or create a personalized ChipIn page at yourname.chipin.com. The site says it doesn’t charge any fees to organizers and contributors that send payments directly to the organizer’s PayPal account. However, PayPal Premier or Business accounts may be subject to fees from PayPal.

FrumUs

This site is best to use before you make a group purchase. At FrumUs you can create a personal group gift page with the financial goal and a description of the gift. The site sends collection notices out to all group members, and once you’ve hit your goal, you can shop for the gift directly via the site’s retail portal, which includes big retailers like Amazon and Walmart. To use the site’s services, you need to have a PayPal Premium account. Fees are 2.9% plus 30 cents per transaction.

WePay

Does your group have a more complicated, ongoing need to share bills? A group can manage a collective account more transparently at WePay. The administrator gets full access to the account, but all members can monitor account activity, balance, transaction history and sent bills. The site charges a 50-cent fee for each deposit made to the group account from a member’s bank account; the fee is 3.5% (though still with a minimum of 50 cents) when the deposit is made from a credit card account. A competitive advantage: WePay’s accounts are insured up to $250,000.

Layaway Making a Comeback for the Holidays

Back in the ’80s my mom used to put some of our holiday gifts on layaway. Keeping the items at the store until she’d paid them off in full meant avoiding the use of a credit card (and the accompanying debt and interest) and securing a great place to hide presents from the kids. While fewer stores offer layaway these days, the practice has made a small comeback in recent years given the down economy.
Among the chain stores that are offering layaway plans this season are Toys R Us, TJ Maxx and Marshall’s. And Sears and Kmart are extending their layaway program this year by four weeks, and including home appliances in the program for the first time. They’ve actually declared this week to be National Layaway Week to encourage shoppers to get a head start on holiday shopping.

Upscale Stores Offer ‘Stealth Layaway’?

It’s not just the big-box family retailers offering layaway. A friend of mine recently put an $800 winter coat on layaway at a small upscale boutique in Manhattan. There was no sign or announcement that the shop had a layaway plan, but my friend - desperate to finance this expensive piece of clothing without falling into debt - asked the salesperson if this was something they’d entertain. The store obliged and my friend put down $100 as a security deposit. She figures she’ll have all the money in a month, when it’ll really be time for a winter coat.
Diamond retailers, jewelry stores and art dealers are also reportedly striking layaway deals with customers. And according to CreditCards.com, pawnshops are getting in on the action by offering layaway to cash-strapped consumers.

Layaway Tips: Be Smart

The FTC recommends you always get the layaway agreement in writing. Understand the refund policy, how much time you have to pay for the merchandise and payment due dates. Especially if you’re working with a small independent retailer, do a background check on the business to make sure they’re in good standing with consumers. You can see if consumers have filed any complaints against the retailer at your local consumer protection agency and Better Business Bureau.

Christmas List: 6 Shopping Tips for a Happy Holiday

Are you a binge-and-regret Christmas shopper? If so, these days before Black Friday — the day consumers typically work off turkey hang-overs by spending themselves into debt-hangovers — are the perfect time for a little advance planning that may allow you to buy great holiday gifts without hating your life (and debt) in January.
What do you need to do? 6 things

1. Play Santa: Santa makes a list and checks it twice, while most shoppers just go to the mall and say “Ooooh, Suzie would love that!” Shopping without a Christmas list causes you to forget some people and over-buy for others. Write down all the people that you normally give holiday gifts to and what you think they’d like. And think broadly about gifts — particularly if you’re on a budget.
Would your friends with small children prefer that you promise to babysit, rather than buy them something–particularly for those tough-to-get-a-sitter-nights like New Year’s Eve? Would your parents prefer an evening out on the town vs. the gadgets and bath salts that you normally buy? If you spend more time, you’ll spend less cash. Thoughtful gifts can be inexpensive.
And, of course, bring the shopping list with you when you go to the mall, so you can tick off presents as you go.

2. Troll for Coupons: The advent of discount buying sites like Groupon and LivingSocial give you the ability to buy dinners; spa treatments; hotel stays and hundreds of other gifts for pennies on the dollar. You get credit for the whole $50 gift certificate even when it only cost you $25. If you’re buying for out-of-town friends, sign up to see the “daily deals” in their locations, as well as yours.

3. Price-Check: Before you head to the mall, check prices for the items on your list. This is particularly important if you’re shopping for big-ticket items that are likely to go on sale. The reason: Retailers sometimes overprice items, so they can make mark-downs look compelling. You get fooled thinking you’re getting a bargain on a $1,000 television that’s marked down to $500, for example, when another store might have that same t.v. for $500 at regular price and mark it down to $350. If you haven’t price-compared in advance, you might think those are two different t.v. sets, when it’s the same product but a different retail strategy.

4. Make a budget: Having a gift list and doing some advance price-checking will make it easy to figure out how much you’re going to spend. Once you’ve added up the rough cost of what’s on your list, consider whether this total is an amount you could pay off by February or March. If not, consider reviewing the list again to see if there are ways to nip back the budget.

5. Confess. If you can’t afford to keep up with the normal state of gift giving, don’t be afraid to confess your financial constraints to your family and friends. In tight years like these, they might welcome spending limits. And if you have friends who care more about the gift than the giver, ask yourself whether they friends worth going into hock for.

6. Shop together: Joseph Grenny, co-author of “Influencer: The Power to Change Anything” has done some interesting research on the things that might cause us to adhere to — or bust — a budget. The biggest factor? Friends.
The people we hang out with fall into two categories — friends and accomplices, he adds. Friends support you, either actively or passively (by setting a good example and not tempting you to cheat) when you’re trying to make a healthy change, like staying on a diet or budget. Accomplices don’t have that kind of restraint, and really don’t want you to either. It makes them look bad.
If you have friends, willing to help you stay on a budget, shop together. Leave your accomplices at home.

Cheapest Days to Shop Online

We already know some of the best shopping deals are found online - but did you know some days are better than others to find the steepest discounts? ShopItToMe.com, which scours sales at more than 100 online retailers, ran a survey for me showing what days of the week certain categories of items carry the biggest discounts. Their data was compiled between June 2009 and June 2010 and analyzed over 1 million sale items on the web. From sunglasses to bathing suits to handbags and menswear, they got me the inside scoop. (The company is also helping to sponsor my book launch in September).
My advice is to read this through, click print and keep the list stored by your computer as a helpful reminder next time you want to shop on the Web.
Mondays: Best for buying men’s and women’s dress pants. The average sale is about 48 percent off.
Mondays: Also great for purchasing sunglasses. The average discount is 55 percent.
Tuesdays: Best for buying men’s apparel. The average discount is 42 percent.
Wednesdays: Find lowest prices on shoes. The average discount is 38 percent.
Wednesdays: Also find best deals on kids’ clothing. The average discount is around 40 percent.
Thursdays: Best for buying women’s handbags. The average discount is 36 percent.
Fridays: Biggest sales on accessories like jewelry, belts and scarves. The average discount is 42 percent.
Saturdays: Best sales on intimates (37 percent off) and jackets/outerwear (51 percent off).
Sundays: Buy your swimsuits for an average 52 percent off!
     Some other online shopping tips …

Search for More Discounts

Dozens of sites like RetailMeNot and Bargainist collect promotional codes for discounts on Web purchases. To find them on your own, try Googling the name of the shopping site with the words “coupon code”  or “promotion code.”

Avoid Shipping and Return Costs

Many retailers offer free shipping promotions from time to time or have thresholds at which they’ll ship for free.  But, some of my favorite online shops such as Endless, RevolveClothing, Shopbop, and Piperlime, always offer free shipping.

Search Twitter

Many retailers are announcing special deals to their Twitter and Facebook followers. Be sure to follow the retailers you frequent to find out as soon as a deal is announced.

Holiday Non-Shopping: 7 Items Worth Waiting For

Plan to treat yourself this holiday season? Fifty-seven percent of shoppers will be making non-gift purchases for themselves this year, up 8 percent from 2009, according to the National Retail Federation. The average personal expenditure: $107.50.
Want my advice? Wait until after the holidays to gift yourself. With so many of us returning gifts after the holidays and retailers looking to unload excess inventory from 2010, the best deals are often found after Christmas and into the New Year. Here are the top 7 items - some to be expected, some not - that you may want to put on your post-holiday shopping list.

1. Champagne and Fine Wine
Bottles of bubbly and fine wine usually go on sale around the holidays and the prices get slashed even further the weeks that follow. This year, expect even steeper price cuts, says Lisa Lee  Freeman, editor-in-chief of ShopSmart Mag. “The recession has been hard on the high-end wine maker. French wines that were going for $50 you can get for $20.”

2. Baking Ingredients
During the holidays, supermarkets and discount stores load up on baking supplies to meet shoppers’ demands. Afterward - when you just can’t face another gingerbread man - these stores slash their prices out of necessity. “It’s a great time to stock up on chocolates, spices, flour, sugar, the basics,” says Freeman. The chocolate may be colored green and red, but it tastes the same!

3. Electronics
The Annual International Consumer Electronics Show runs the first week of January. That’s when companies roll out all their new models of computers, cameras, cell phones, printers … you name it. While early adapters salivate over the newest and latest tech gadgets, January is a great time for everyone else to buy the most recent models - which will, no doubt, be discounted heavily to make room for the new.  ”If you don’t take advantage of the Christmas deals, don’t worry. After Christmas, everything’ll be on sale!” says Freeman. Last year Walmart offered shoppers a $50 gift card when they bought Microsoft Xbox 360 through January 1.

4. Winter Clothes & AccessoriesThere will be no shortage of discounts at department stores and clothing retailers - especially on hats, scarves, boots, winter coats and wool socks.  Invest wisely by opting for non-trendy staples that will last you another winter or three.

5. Refurbished GoodsExpect stores’ “refurbished” bins - where returned appliances and gadgets get a 10 to 20% discount - to be well-stocked after the holidays, as people return unwanted gifts. One note of caution: Only buy refurbished items from reputable dealers that offer a manufacturer’s warranty. Sony, Dell, Amazon, Apple and Kitchen Aid are all in the refurbishing business.

6. Holiday Cards, Wrapping Paper, OrnamentsThis one’s obvious. Expect discounts of 50 to 90%. A tip on the wrapping paper - go for a solid color, instead of a sheet with Christmas trees or dreidels. Gold, green, blue or red wrapping paper, while seasonal, can also be used throughout the year.
7. CalendarsCan you wait a few extra days to get organized? It’s almost a given that Borders and Barnes & Noble will have their 12-month calendars on sale the first weeks of January.  I’ve spotted their buy-one-get-one-free or “All Calendars $1? deals throughout the years, appearing right around New Year’s Day.

7 DIY Holiday Gift Ideas

Do-it-yourself gifts are a terrific way to budget around the holidays. But to do it right, you’ll need effort, thought and novelty; the days of overwhelming your gift recipients by throwing an old picture into a frame and slapping a red bow on it are long gone.

Here are seven out-of-the-box DIY ideas to get your creative juices flowing.

Regift in a Positive Way

Can’t find anything at the mall for your sister? Wrap something of yours that she’s always admired, something that you and she both honor. Examples could include an heirloom vase, a certain doll from her childhood that she thought she’d lost (you may need to go through your mom’s attic to find it), a piece of art from your art collection, your childhood Polaroid camera you never let her play with, etc.

The Gift of Time

Your best friend, aka superwoman, has no time for herself. Between working full-time, driving her kids to afternoon sports and taking care of her parents on the weekends, she could really use a day to herself. Offer to take over parental duties starting one afternoon through the evening so that she can pamper herself and go to dinner with her husband … or even just use that time to catch up on sleep! It’s a generous gift that costs nothing but your time and patience.

Unique Calendars

I got inspired by this Christmas Advent Calendar I found on Etsy.com. All I need is a mini muffin pan and some stickers or I can buy the artist’s DIY kit for $6. Canon also has these free downloadable triangular desk calendars on its website - a great gift for co-workers.

Vacation Getaways
If your second home at, say, the Jersey Shore is vacant, you may wish to treat one of your very trustworthy family members or close friends to a weekend getaway there. Wrap up a local souvenir, for example, a box of saltwater taffy, and in the card mention that the real gift awaits them this summer - at your beachfront address.

Secret Recipes Book or Cards
Your daughter-in-law is pleading to know the secret ingredients in your pumpkin spice cake, your spaghetti and meatballs, or your hot chocolate. Her marriage to your son depends on it! Reveal what you’re willing to reveal in a handmade recipe book just for her. Martha Stewart has a free recipe card template you can download from her site.

Cook Up a Food Gift
The trick with food is to make it surprising and fun. Part of the magic is in the packaging: Use a colorful tin from the dollar store, instead of a paper plate with Saran Wrap. With more commitment, you could add a hand-written note that reads, “Welcome to My Cookie of the Month Club. To start you off, here is a batch of homemade dark-chocolate oatmeal cookies. More to come in 30 days!” It requires a little more effort on your part, but your college-age niece will appreciate it throughout the year - far more so than a Gap gift card.

Other ideas: Surprising your coworkers with a tray of chocolate-covered strawberries; give your cousins a few jars of your exquisite homemade jelly. (You can find inexpensive jars from Ikea here.) Delish.com also has some great homemade holiday gift ideas. One of my favorites is the gift of tea - put peonies and green tea in cellophane envelopes, and present them along with ceramic teacups.

Swap Skills
Your nephew needs help with Spanish. His dad (your brother-in-law) doesn’t want to spend the $50 an hour it costs to hire him a tutor. You happen to have a second degree in Spanish. Offering five free tutoring lessons (an hour each) in exchange for your bro-in-law’s legal expertise (as you’re starting a business) comes out to a win-win. Just make sure that you still get your nephew the Xbox game he really wants.