Yesterday’s shopping expedition went very well and I am almost finished. When I was walking around though I did notice that I was making better choices for gifts. Just because there was something marked 65% off, and in a hideous color (for the recipient) though it was a great deal it wasn’t a good value. I have not always been so mature. Buying something a neutral color for someone is great buying a “fashion” color that was only fashionable for 2 months is not a great deal.

Coupons and discounts can be tempting but unless the item has real value it is not a good deal. I know if someone gave me something that was “on sale” but in pink no matter how much it cost, this would not be a good deal for me. It would be a waste of the person’s money. I think of the same thing when I am shopping.

There are many deals to be had, and even if you are rushing, think about what you are buying and whenever possible get a gift receipt so the recipient can return the gift and really get good use out of your money.

The Consumer Price Index, a key inflation reading, fell 1.7% last month, according to the Labor Department. That was much weaker than October’s 1% drop and exceeded the 1.3% decline forecast by a consensus of economists surveyed by Briefing.com.

Prices are decreasing. Not just gasoline. The decrease in prices is good in some ways if it stimulates the economy But there are so many people who are holding on to their money that it is difficult for people to really make dramatic shift. Especially if you have no job, or are unsure whether or not you will have a job in the near future. Low prices are good but if you have no extra money to afford what is being sold then you don’t buy. Also, if you don’t want to incur debt then you definitely want to hold on to what you have.

For necessities, decreasing prices will definitely help with the bottom line. Saving money or paying down credit cards or other bills has become a more important priority.

Too much of a decrease in prices could decrease the manufacturer’s and store’s profits and could make it necessary for companies to lay off workers. Too many stores, too much consumption via credit and now things are normalizing in a difficult way.

Cash is great but if you already have a store card, using it may reap you more benefits and savings.  I went to Macy’s yesterday to buy some things that were already on sale and just by using my store card I was able to save an addition 15-20% off of regular, clearance and sale prices. Even if you were intending to pay cash, using a credit card and setting the money aside to pay the bill when it comes can reap great benefits.

Christmas is next week. If you haven’t decided what you want to give other people there is still time. Although it is rather difficult to try to make all the gifts you may need for this Christmas, be realistic about what you can and cannot make. 

More and more people I talk to this year are giving money to people on their lists. Many are afraid of giving store gift cards because so many stores are going out of business. Giving cash isn’t a taboo as much anymore and this gift giving season it can really help you keep things in line with your spending. If you say you want to spend $25 for a person is that with or without tax? If you give $25 to a person then that’s it, you have given your gift and don’t need to worry about additional taxes, shipping and handling which could add another 15-20% to your budget.

Giving cash is a great way to simplify your gift giving. I am giving cash to some people and have no qualms about doing so. I may make the gift a little more interesting by giving the person all singles in a basket or other interesting container that I already have but I am going to stay within my budget!

When spending for Christmas, make sure that you include the price of gift wrap, decorations and other small things that will definitely add up and break your budget.

If you have gift wrap from last year, use it. Before you buy any more, assess what you already have. Using gift bags instead this year? Take stock of how many you really need before making any new purchases.

Do you need to buy a box? Before the recession stores weren’t giving away boxes as much, so that means you may have to make a trip to the dollar or craft store to buy some boxes if you aren’t using other containers for your wrapping. If you are shopping at a store that does give away boxes ask for them. Especially if you have several gifts that are going to the same person in one box, you will definitely need a box at some time.

Don’t forget to compare prices. 

A basket or reusable bag may cost more but if your recipient can use it hundreds of times or use it as a household container this is a better deal than just buying a bag or using wrap that will be tossed out. Either way, you need to plan for this expense or you will have to wrap gifts in newspaper, or give them naked (sans wrapping).

It’s easy to get caught up the in the cute seasonal wrapping that is offered at the higher priced card/stationer shops. Go to the dollar store or craft store when it is on sale and buy wrapping paper. (Make sure that when gifts are being unwrapped, you put them in a bag for recycling.)