WHERE DID ALL THE SMART SHOPPERS GO

Where did all the smart shoppers go this holiday season? You might be inclined to answer on line to that question, but you would be wrong. Due to unfavorable forecasts for this past holiday season your local retailers were offering deep discounts on in store purchases that may not have been passed on to the on-line consumer, so the smart shoppers were the ones braving the mall and other local retailers and saving money. Since the economic slump in sales is hitting hard on local retailers, the economy will take another hit as some local stores will have to close their doors. The holiday season couldn’t possibly make or break a retailer you say, it certainly can! Many local retailers make up to 67% of their annual sales during the holidays. While the figures are hard to track because of the varying types of retailers, the proof is in the closings at your local malls, boutiques, and specialty shops, many are going out of business.

That means higher unemployment, more downsizing and less revenue circulating in your local economy. That means you might begin to worry about “your job” if you aren’t already. Why are you telling me this now you’re probably wondering, because there are lessons to be learned from this and it’s not too late to save money and save jobs. We need to take action before it’s too late. We’ve got to make sure we’re on the right path, not one that will lead us to an end result where our only option is debt settlement.

I am not telling you don’t shop on-line, there are instances when it is even necessary, but many consumers today shop on- line as a convenience. We should try to spread the money around in these trying times, into your local economy. You may think buying locally won’t keep a local “chain” retailer open if the chain itself is failing, but you would be wrong it actually does. When making corporate decisions on which stores to close the number crunchers are looking at retailers with the lowest sales, making decisions on which stores will be closing based on the numbers. Analysts will tell you there are many factors that make those determinations, but most will admit that gross sales at that particular location is a major deciding factor. In this economy the trickle down effect of sagging retail sales directly effects your pocketbook in many ways. With less money flowing through your local economy bad can go to worse quickly and none of us can afford that. Save money while you save your own local economy!

Keep in mind that every business is like a large oak tree with many roots spread out in your community and we are the roots. Like any tree we have to feed and water it on a regular basis or it will die, our local economy is much the same. We can learn from this past holiday season and apply that knowledge to our everyday shopping habits. Buy what you must on line but, keep feeding the trees in your own back yard by shopping at your local retailer and save our trees.

Budgeting - 5 Tips to Avoid Debt

No Debt - No Problem 

1. Make a budget, this is the most important thing you can do. Having a budget will help keep track of your spending which in turn will help you stay debt free. When making a budget, it should include how much money you have coming in, and how much you have to spend each month on bills and essentials. Whatever is left on your budget sheet when you take the outgoings from the incomings is your budget for the month. Every time you spend something, no matter how small put it on your budget sheet and work out how much you have left. Small items add up quickly, just a few extra bars of chocolate or some non essential items in town can end up making you spend money you don’t need to be spending, and that you often forget you have spent.
2. When buying an item in town, don’t buy it straight away, go around to different shops, have a look at other items, look for the cheapest you can find or try and find a similar item within the price range of your budget. Going around to different shops will help the impulse go, if at the end of shopping around you still feel you need the item then make sure you can afford it. If you can’t afford it and you don’t need the item, then be strong and do not buy it.
3. Make a shopping list. It may seem like something only old people do, but making a shopping list really works. It not only helps you stick to your budget, it makes sure you only buy the items you intended to buy when you set out. Stores are designed to make us buy things we don’t want or need, and often when shopping we end up coming back without what we set out for. Make a list, stick to it. It will help.
4. Set a budget for each shopping trip. If you are going into town to shop, take out $100 from the bank or whatever you can afford and set this as your budget for the day. Only spend the money in your wallet or purse. Having cash will make you stick to your budget. Don’t buy anything on card even if it’s a debit card. Only spend what you have. Even a few small extra payments on cards, it will mount up. If you absolutely must have something that is out of your budget range for the day, check tip 2.
5. To save some extra cash, take around 10% of what you earn every week or month, and put it somewhere safe like a separate bank account. The money will soon grow and can be put towards something your saving for. 10% isn’t so much money that you will notice it being gone from your main spending budget.

Hopefully using these tips will help you get a better grip on your finance and help you budget for the future and avoid debt.