Thursday thoughts: Creating a gift reserve

One of the best tools you can use to cut your Gift Giving Budget is to create a Gift Reserve. Imagine shopping from your own stash, as opposed to running to the store. Can it save you money? In 2010, our family spent 40-50% less than the previous year on gifts, simply by using a Gift Reserve. Let me show you how.

A Gift Reserve is a "reserve" of items you've bought at rock bottom prices (ie dirt cheap!). Typically, if you buy a gift at the moment of need, you'll spend more than if you planned ahead. ("Failing to prepare is preparing to fail." - Benjamin Franklin) The goal is to cut your Gift Giving Budget. If you buy items at rock bottom prices, you can stock up for a gift giving opportunity.

Anywhere you have space. Consider using a spare drawer, a box in the attic/closet or under the bed. (Just make sure little fingers can't find it.) Also keep it organized. If necessary, keep a list of all the items in your Gift Reserve.

* Be an opportunist when it comes to great deals.

Would your friend be happier to know you put yourself in a financial disadvantage because you felt compelled to buy something expensive off their registry, rather than buying them a high quality gift at a fraction of the cost? If you're on a tight budget and you give a generous thoughtful gift, it shouldn't matter.

Here's your challenge for the week: Make a list of all gift giving opportunities for the year. The list will change as you go, but it at least gives you a place to start. Then watch for Hot Deals to add to your Gift Reserve. By the way, check out Your Retail Helper's Retail Round Up every Thursday afternoon, which is a huge list of printable mall and store coupons you'll need for your weekend shopping!