Shoppers can expect more deals for Christmas shopping this year. That’s good news right? That is because people who have been overspending for years or are feeling the crunch may be feeling the crunch all over. Holiday shopping is not the only concern for retailers. One area that concerns retailers is the lower end luxury items.

If the slowdown continues, luxury retailers could be hard hit. To appeal to a broader demographic, companies from Tiffany to Valentino have courted mass affluent shoppers with new lines at lower prices. The mass affluent account for 23 percent of households, compared to less than 2 percent for those with incomes upwards of $250,000, according to the U.S. Census Bureau.

These households, with incomes of $75,000 to $150,000, make up 23 percent of the population, and it’s “the marginally wealthy who are feeling a bit less well off,” said Milton Pedraza, chief executive of the Luxury Institute, a research group that studies behavioral habits of the rich.

Rather than just buying a purse or bag for $400 people may start thinking about whether or not they really need the item. The chief executive of the Luxury Institute may not really realize it but a single household with an income of $75,000 has much more disposable income than a 5 person household making the same amount.

Luxury items are just that special items that are not for everyone to have. Some high end items have increased in price over the years, not necessarily improving the quality but still having a name brand that is very enticing to some shoppers.

As people who are in the lower realms of “affluence” have to use more of their money to pay for staples such as food, energy and taxes then that leaves less money for frivolous items.

I have no qualms about buying a treat or two but not at the expense of vital necessities. I have seen high end purses that could use a little polishing cream for a fraction of the original price. I have also seen less popular colors of the current it bag on sale later on.

My advice would be to buy quality but less. Even the super rich will go broke if they don’t practice good spending habits. Don’t get sucked in by material things that you may not be satisfied with in a month or so. If there is something that you are really interested in that is pricey, go to a consignment shop which will have a higher price but better quality than a traditional thrift shop. Check thrift stores, you may get lucky. You can rent luxury items or rent to buy. Look in magazines for ways to get the fashion look for less.

If you really want the item, think about it first for a day or so* and then if you still want the item and it will not put you into too much financial strain – buy it. [*Unless you are on vacation and will not easily come back to this store... in that case buy it as your one really nice souvenir to yourself.]

Luxury shopping or any shopping for that matter should not be guided by impulse – use your head and relationship with money to guide you.

Take the expense out of expensive items. Expensive items don’t have to be so expensive. If there is something that you want that is “expensive” there are some things you can do to save some money. Expensive is a relative term depending on your mind set.

I would rather buy a quality item that I don’t have to replace often that also goes with gifts. I would rather give a gift that will not fall apart or be broken in a short time. What can you do? Look at the resources that you already have…

If you have a credit card that help you earn bonus points or cash back see if you can redeem some of those points for a gift card. They are your points don’t let them go to waste.

Online coupon sites are wonderful. Before I click that final submit button when shopping online I always look for a coupon. More often than not, I find a coupon that will reduce my bill by the cost of shipping or more.

Do you complete online surveys or read emails for points? Just like credit card points those add up as well. I have points that I am saving, but did use some for a Marriott gift certificate before which allowed me to pay for one night’s hotel stay when I wanted to take a trip. If you are in a program that doesn’t offer gift cards or cash and only offer premiums or subscriptions then see what you can redeem those points for.

Pay attention to those in store preferred shopper card rewards. You may not want to carry an extra case of cards like I do, but it is worth it when you can earn free certificates for dollars off future purchases or additional points that can accrue and you will get benefits. Customer cards can yield great benefits. I used a $4 certificate this past weekend and only had to pay two dollars and some change for some stationery items.

Has your philanthropy given you a prize? If you make a donation to wildlife organizations or any cause you are often given a premium. If you decide to take the premium then you can pass that along to someone. Some of the items are very nice and can be used by someone. I joined a museum and received a free subscription for a magazine that I already have a lifetime subscription to (it was a limited time offer and would pay for itself within 5 years). So rather than just throwing it away I am going to pass that subscription on to someone else.

Christmas is coming and you need to be a little more savvy about spending this Christmas. I am probably going to do the combination of online and in-person shopping and also give out a few gift cards as well. If you have a gift that is more expensive than you want to spend, give a gift card to the person for the amount you wanted to spend. This way you will not go over budget. Or go in with another friend or relative for a large ticket item. It is about the gift and do not let yourself be pressured into spending more than you comfortably can.

The market is scary now but…

Think long term.

Savings and investments are for the long run not short term. If you were just investing for the short term that is when you have your money in cash or cash products. The 20^th anniversary of Black Monday was a sign that there were lots of people who should have stayed put in the market. This is why you diversify in your investments.

In the short term you will lose some money but it will be painful. A smart move and frugal people are smart means that you will not make any rash moves. The market has taken some smaller hits over the past year or so and has recovered. Use this time to take advantage of buying more for your investment dollar. What you have may drop but over time, you will probably gain more.

Use this advice from Marketwatch

The Black Monday anniversary coincides with the front edge of the baby boom generation qualifying for Social Security benefits. No one got to this point and said “Shoot, I could have retired today had it not been for Black Monday back in ‘87.” Few days on the market will be as memorable as Oct. 19, 1987, but even the days that inspire the most nervousness will not be remembered when it comes to counting up your nest egg after the appropriate passage of time.

In essence, there is no need to make any rash decisions or worry about an investment now when you aren’t going to need them for 10, or 20 years. If you made a wise decision when you started to invest, then you will reap the benefits in the future.

It will be painful to see your portfolio lose money but a year from now you probably won’t notice the losses. Over time with sound investments and a diversified portfolio, you will probably make gains.

You probably have done it before but haven’t mentioned it. I will admit it. I reuse resealable plastic bags. Not all of them mind you because I do not want to wash them. In some instances it is just easy to reuse a plastic bag.

For example some of the beads I use to make jewelry are sent in resealable plastic bags. There is nothing wrong with them so I may store other materials inside. They are good for multiple uses until they rip or tear.

Travel… I never liked carrying my toiletries onboard the plane so it doesn’t bother me to check my luggage. But things tend to leak and/or spill from the jostling around. I put small items that would leak in one of those snack size bags and use a store bag to put the whole toiletry kit inside so incase there are items that explode. I have had this happen before because of baggage handling/air pressure.

Lunch… sometimes I will reuse the bag if I am taking a similar type of item the next day or so that isn’t wet. If I put chips in a bag and will have the same type or similar type of chips the next day or so for lunch I will reuse the bag again. Even if I am going on a trip and want to take a snack, I might carry a smaller plastic bag and put a snack inside. A few plain M&Ms are a good pick me up during an afternoon of sightseeing and you save money by using some out of a large bag and having the amount you need rather than buying several individual bags.

I haven’t gotten to the point of washing resealable bags for future use because by the time I have to use soap, water and effort to clean the bag – to me it is not worth it. A solid container on the other hand like a glass jar or sturdy plastic container is worth the effort – not a plastic bag.

Reusing containers or giving them a new purpose is a great way to save money and the environment. The less plastic you use, the less oil you consume.

Repurposing items is another way to go. If you use a thrift store item in a constructive way for a use than it was created for you are repurposing an item.

I am content reusing some resealable bags. Store bags make great garbage bags for small items. Even the plastic grocery store bags can be reused for another trip to the store. Some stores have heavier plastic which take longer to degrade in the environment but can be used again and again. Save money by taking your own bag to the store. If more people saved money by taking their own bags then fewer people would use a lot less oil.

In the US alone we use approximately 12 million barrels of oil to produce plastic bags. Yes they are convenient, but for a plastic product that will be thrown away we should find a better way to use oil.

If you are in need of a reusable bag alternative for lunch – use a sturdy plastic container that is meant to be used hundreds of times. Even when a plastic container gets a small crack in it, it can be used for another purpose.

Haven’t starting thinking about stocking stuffers? You should because these little items often add up and can break the budget.

Christmas is coming and you may have gifts in mind for the people on your list but another way to get some things to fill those stockings is to send for sample items that will make it easier and cheaper to fill those stockings.

Besides with samples, you may even get a coupon for the item. I recently received a pouch of coffee for free with a 75 cent off next purchase coupon. The sample was enough for a 10 cup pot of coffee and there was a choice of samples. Look for coupons in the paper on items that you know the person likes or will use.

Certain companies will send you a free shirt or other premium if you send in UPC codes. That may be a pain but you will save money and the gift will take up space in the stocking. This doesn’t mean that all of the stocking stuffers have to be freebies, but if you plan to spend $25 to stuff a stocking you could spend less by surfing around and getting some freebies online. Start sending away for those things now because some items say that you will receive them in 6-8 weeks. It only took 2-3 weeks for me to receive some of the samples I sent for, but if the items are not perishable, then you can just save them. If there is a hobbyist on your list, buy some things early that are on sale.

Like I said before… make a Christmas spending plan and stick to it. Spend less than you budget. It requires some work but it is possible to do.

In the Christmas spending plan make sure that you include wrapping paper, cards and new decorations as well. [That is if you didn’t buy these last year on sale after Christmas.] These hidden extras often make people go over budget. If you do buy wrapping paper and ribbons before Christmas; shop around. Craft stores often have better sales on these items than the card shops or drug stores.