The day after Thanksgiving is the traditional start to the holiday shopping season and that usually prompts a number of stores to open at the crack of dawn. Crowds of shoppers gather in the dark as they wait for the doors to open and their chance at deeply discounted DVD players and such. This year, retailers are going even further. According to a story in the 11/5 issue of the Chicago Tribune, dozens of malls are planning to open right after midnight.
Matt's View
Assuming you haven't finished all of your holiday shopping by now, here's an idea for an unusual gift that both you and the recipient are likely to enjoy for years to come, and it doesn't require shopping under the influence of tryptophan: an agreement to stop exchanging gifts with each other, or at least to put some limits on the gift giving. Before you rename this eNewsletter Scrooge About Money, hear me out. Gift giving is a very common budget buster, with the short-term joy generated by most gifts quickly replaced by the long-term pain of having to pay the bills. And if you think about it, how many gifts do you actually remember? How about presenting this idea to one person on your shopping list this year? If you just can't break the habit of spending money on each other, consider pooling what you would have spent and giving the money to a good cause. The joy from that is likely to last a lot longer than the joy of receiving another sweater.
The end of year holiday season has become much more than "the most wonderful time of year." It's become one of the most debt-inducing times of year, with many people going a little too crazy at the mall. However, if you have too much debt, this can also be a great time of year to pay it down by generating some extra income. As a recent ABC News story pointed out, lots of retailers hire extra staff for the holidays. ABC also offered up some more creative ways to earn some extra income. For example, if you have specialized knowledge, look into becoming a Guide on About.com. In exchange for posting an article every two weeks and keeping a blog fresh, the site claims you can earn anywhere from $500 per month to over $100,000 per year. Or, consider working from home as a part-time customer service rep, making $8 to $15 per hour. Companies that hire such reps include: Alpine Access, LiveOps, West, and Willow.
Matt's View
One danger to watch out for if you pick up a seasonal retail job is the all-too-tempting employee discount. It won't make any sense to take on some added work if you end up spending all of your earnings while "saving" on all the great deals you'll have access to.
The old adage, "if it seems too good to be true it probably is" remains as valid as ever. However, it's becoming more difficult to determine when a deal is not really a deal. According to a recent story on MSNBC, for example, instead of increasing their prices, many packaged goods companies have kept their prices the same while decreasing their package sizes or how much is in the same sized package. The story cited one toilet paper manufacturer that still boasts about the number of sheets on every roll but is less vocal about the fact that it has shortened the length of each sheet.
Matt's View
One of the best ways to make sure you're getting the best deals on everything from cereal to shampoo is to keep a price book. List the items you buy most often and the best deal per ounce or per count that you've found. Then take the book with you as you shop so you can see whether today's special is a good deal or not. However, as in the toilet paper example, even a price book may not be enough. That's why the MSNBC article also recommended "consumer advocate" Edgar Dworsky's Mouseprint.org web site which helps shoppers decipher the finest of the fine print.
It's no secret that many of us are not saving enough for our later years. One step that's proven effective at motivating people to get in the savings game is to crunch a few numbers. A story in the Chicago Sun-Times on 11/6/06 recommended some web sites where we can do just that. First, go to columnist Terry Savage's site and click on the blue box that says "Financial Engines." That'll give you access to a one-year free trial of a service that provides personalized advice about how much to save and how to diversify your investments. Or, for a simpler approach, Fidelity just started offering a free myPlan Snapshot.
Matt's View
According to the Employee Benefit Research Institute, less than half of all workers have done a retirement needs calculation. Run some numbers and you'll join the minority who've taken a proactive step toward planning for their future. It'll either give you some added peace of mind that you're on the right track, or it may just motivate you to start stocking that 401(k) plan.
