The stock market has rebounded nicely from the lows a year ago that had people talking the “D” word - Depression.  While I haven’t recouped everything we lost, I can’t complain.  However, experts are predicting that returns this year won’t be near where they’d hoped, and market watchers are wondering where the next best place to invest is.

My family is still putting money in the market, but this holiday season, I’m betting my money on gift cards!  That’s right.  Gift cards.  Not the most sexy financial instrument out there, but here’s why gift cards excite me.

I treat couponing, deal hunting, and shopping just like I do buying stocks.  I do research to find the good deal, I try to buy low on everything I purchase, I pay cash, and I expect maximum returns.  The holiday season is the best time to buy stock in gift cards.  Nearly every major retailer has bonus deals. If you look at buying into those deals as you would look at making an investment, the percentage value of the bonus deals is like earning money in the market.

Let me explain.

I recently went to Claim Jumper restaurant.  They have a holiday gift card deal where if you spend $100.00 in giftcards, you’re given $20.00 in bonus gift cards.  Plus, they threw in a free mug of candy, but we won’t count that.  We were going to eat at Claim Jumper anyway.  So, I bought the $100.00 in gift cards while we were waiting to be seated.  Then we spent $60 of the gift card on dinner.  But, I pocketed a 20% gain.  Not bad for a night out with the kids.  For no real effort, I made $20 doing something I was going to do anyway.

At Safeway, they are promoting $20.00 off on your next grocery trip when you buy $200.00 in gift cards.  Safeway is a veritable gift card mecca.  They have cards for nearly every major store and restaurant you can imagine.  The offer is good for two days starting Black Friday.  So, if I were to go to Safeway first before Black Friday shopping started, bought $200.00 in gift cards for stores I want to shop on Black Friday anyway, then I’d make 10% for the minuscule effort of running in to get gift cards, and running back out to freeze my butt off in line at Target.

It’s not just grocery and restaurants that offer deals like this at the holidays. Major retailers do too.  And, with tax season right around the corner, all those “cash your tax returns for bonus gift card deals” can help save you even more.  In fact, gift card deals that start in October and end in the early spring can really add up.  Last year, I pocketed close to $1000.00 in “free” money just by converting my cash to gift cards.

Now, a few things to think about.  Gift cards are great, but if the store you’re buying them has any chance of folding, then being stuck with gift card balances you can’t use will eat into your profits.  Be sure to stick to big name retailers and restaurant chains when you’re investing in gift cards.

Second, the bonus gift cards usually have restrictions like dates and redemption limits.  So, be sure to use the bonus cards up first if they have specific-use guidelines.  Then, use the actual gift cards if you haven’t already used them at the time you purchased them. Bonus gift cards can also sometime have restrictions about using them with other offers, so watch to be sure you can use them with coupons and other deals.

Lastly, giftcards as an investment isn’t just limited to buying a full-value gift card and getting a bonus card.  Buying giftcards at a discounted rate for the full value is also an investment.  Costco sells $100.00 worth of McCormick and Schmick’s (M&S) gift cards for $79.99.  So in effect, just walking into Costco and buying up $100.00 of gift cards for $79.99 gives me a 20% return on investment the moment I swipe my debit card.  And unlike bonus cards, the discounted gift cards like the ones at Costco come with no restrictions. I can use my M&S rewards card, coupons, and other offers to make this deal even sweeter.

Another investment strategy with gift cards is getting them to buy actual items you would have bought already.  At Blockbuster video, they were giving a $5.00 gift card to buy an Entertainment Book.  Buying the book, then using the Blockbuster coupons in the book in conjunction with the $5.00 gift card to pay for that visit’s movie rentals could effectively save you up to half the purchase price of the book.

When you think about utilizing gift cards in this manner, it’s easy to see how the returns you get from being a smart gift card buyer can add up faster than dividends from money invested in the stock market.

And, in most states, there are gift card laws that protect consumers.  Many states have done away with fees for non-use, expiration dates, and other legalities that made gift cards not near as user friendly.

So, this year, I am once again investing my cash in gift cards.  Year after year, I make more as a percentage on investing in gift cards than I do giving my money to the guys on Wall Street.  And that’s money you can bank on!

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Tags: entertainment books, gift cards, Investing, stock market
Posted in Articles, Finance, Finance & Budget, Frugal Living, Holiday's & Gifts | No Comments »

What is Black Friday?

For complete listings of the deals from a large number of stores, many with ad scans, please visit our Holiday Deals forum! This includes everything from Halloween to the After-Christmas sales, as well as archived information from previous years.

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Tags: Black Friday, Cyber Monday, Shopping
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Frugal shoppers know that the best time to get a deal on holiday items is to purchase them after the holidays are over and save them for next year. You can pocket some major savings by thinking ahead and saving 50-70% or more on holiday items now rather than paying full price for them right before the holidays.

The biggest after holiday savings is seen after the Christmas holiday. Retailers usually put all holiday merchandise at 50% off the day after Christmas and you will usually see 75% a week or two later. Some retailers will do further markdowns just to move the merchandise off the shelves to make room for Valentine’s items.

Look for deals on items like wrapping paper, gift bags, tissue paper, gift tags, holiday lights, festive decorations, potted poinsettias and other potted holiday plants. Holiday gift sets and baskets can be a great bargain. This year, I picked up Yankee Candle gift baskets online at 50% off retail. They make great gifts later in the year for teachers, friends, and family members. Other holiday goodies worth watching for include holiday cards, napkins, paper plates, Ziploc baggies with holiday designs, candy, and candles.

Most people don’t know they can negotiate with the store manager for further markdowns. At one of my local grocery stores they put all of the holiday clearance in shopping carts and park them near the front store entrance. I’m not shy about asking the store manager what kind of deal he can make me if I purchase the entire basket full of merchandise.  I’ve walked out with hundreds of dollars worth of products for a mere $20 for the entire cart.

Christmas is not the only holiday that offers great post-holiday savings. Each major holiday is a great time to stock up on items to use the following year. Valentine’s Day, Saint Patrick’s Day, Easter, Fourth of July, Halloween and Thanksgiving all provide a great opportunity to save money.

Storing your post holiday bargains is an important thing to remember because poor storage can result in melted candy or forgotten gift items. Here’s some helpful tips for storage:

* Freeze all candy that could possibly melt like chocolate. All other food candy such as jelly beans or valentine heart candies should be put into zipper bags with as much air removed as possible. Most candy has a very long shelf life and should be just fine the next year.

* Holiday wraps and decorations should be stored with your other holiday items in a cool dry place such as a garage or basement.

* How you store gift items will depend on when you plan on giving them. Gifts you plan on giving the following year should be stored with your holiday decorations so that you will remember them the following year. Label your storage containers with the holiday name and contents on the outside so you know what is inside.

* For gifts that you planning on giving year round (think gift baskets of coffee, tea and spa type items) set yourself up with a gift closet, cupboard or chest so that you have your gifts at hand for any occasion that arises.

Putting aside a small amount of money to stockpile holiday gifts and items after the holiday is a smart way to save lots of money and be prepared ahead of time saving you less stress next year.

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Tags: 4th of July, Christmas, Easter, Frugal Living, Halloween, Holiday, Post Holiday, Shopping, Shopping Tips, St. Patrick's Day, Storage, Thanksgiving
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