ModernGraham.com - A resource for Intelligent Investors

            I realize that the holiday season is still not for over a month and a half but that is why I think now is the time to start planning our purchases. The closer we get to it, the harder it becomes because we are more pressed for time and money. Therefore, by starting now we can avoid pressure that causes poor choices and over spending. The first thing to consider is exactly who you would like to give a gift to. I start by writing out all of the names by section such as by family, friends, or co-workers. Then I pick an amount that I want to spend on each person. After I have picked an amount to spend on everyone I add all of them up and see if the total fits within my budget. This is another reason why I think that starting early is beneficial. I started writing my list at the end of October if the amount that I wanted to spend on everyone was too high it would have given me almost two months to adjust other aspects of my budget and save more for my gifts. If I had waited until after Thanksgiving I would have lost about an entire month of saving which could cost me money in the long run not because I would be having to spend more money but because I would have to pull money from my savings and go into the new year on a deficit. After I have decided on a final amount for each person I start a list of what I think I would like to get them. I always make the list longer than I think it should be giving 3-4 choices per person. This way I do not feel “locked into” buying them one gift. If the gift I originally thought about getting them turns out to be more than I budgeted for, I move on to the next item on my list. When I go shopping I take my list with me and stick to it. If I see something that I think the person might like better and it is the same price I buy that instead of the item I was originally going to buy them. But if it is more expensive I wait until I can look again at my budget and make sure that it fits before I purchase it. Overall, pick a budget and stick to it. I know it can be difficult but if you start early you can avoid stress and buying things you don’t need. Oh, and always follow my number one rule, just because it is on sale doesn’t mean that you need it.