The stock market may be down, your checking account balance may be down, but the discounts at the mall are up -- way up. We are in the thick of the holiday season, and that means advertisements encouraging consumers to spend, spend and spend some more are everywhere.
There is no escaping it: This year, more than ever, we are being bombarded with retailers trying to lure us in with rebates, free shipping and 20 percent off.
So how do you deal?
Eat. Whether it's breakfast, dinner or even a snack, don't go shopping when you're hungry. "I know it sounds ridiculous, but we do know that when you are hungry, you end up buying 40 percent more. And not just food; you actually buy more flat screens, or more furniture, or more software, too," says Martin Lindstrom, author of the new book "Buy-ology: Truth and Lies About Why We Buy." That's because we're actually hardwired to crave, buy and hoard things when we're hungry.
Leave your kids at home. If you've ever been to the grocery store or a mall with a child, you know the reasoning behind this. Not only will your kids want anything and everything they see, but they'll also try to convince you that Dad really needs that new laptop or that the family room needs a stereo.
Make a list. This is extremely important. Before I head to the stores, I
spend about 20 minutes writing down everyone's names and what I plan to get them. Then I get on the computer and use a comparison-shopping site to find out where those items are being offered at the best prices.
Don't be fooled by deals. I know it's exciting to get an item on sale. But if you're buying for the discounts and not because it's something you need or want, you're going about things the wrong way. Look at it this way: Saving 30 percent is great, but if you didn't buy at all, you'd be saving 100 percent, which is even better. So before you make any sale purchases, ask yourself if you'd still be swiping your debit card if the item were full price.
Get creative. If there's an upside to this economy, which has now officially been classified as a recession, it's that it is affecting everyone. There's a good chance everyone in your office, on your block, in your circle of friends and especially in your family is cutting back, and that means you can feel more comfortable about suggesting ways to cut back on the gift-giving. One way -- particularly if you have a large family or group of friends -- is to draw names out of a hat so you only have to buy one gift instead of 10. Another great idea, suggested to me by Mary Carlomagno, author of "Secrets of Simplicity," is to focus on experiences rather than material gifts. "One thing my friends and I started is instead of buying each other something, we'll plan a night out or get together at someone's house."
Don't cut out, cut back. Think of this like a diet: If you cut the gifting and spending completely, you're more likely to binge on the cookies -- or in this case, the sales -- a week or two down the road. "I think more people now are forgoing the gift-giving entirely, and I don't think that's necessarily a good idea either. Like anything else, it has to be practiced in moderation," Carlomagno says.
Jean Chatzky is an editor-at-large at Money magazine and serves as AOL's official Money Coach. She is the personal finance editor for NBC's "Today" show. Her Web site is http://www.jeanchatzky.com.
Advertisement