Mellody's Holiday Shopping Secrets

Nov. 19, 2007 — -- Retailers are positioning themselves to get a piece of the anticipated $475 billion consumers are expected to spend this holiday season. And while it's a huge season for stores because this is when they make most of their profit for the year, it doesn't mean savvy shoppers can't save on purchases.

Check out the tips below on how to save money while shopping this holiday season from "Good Morning American" financial editor Mellody Hobson.

Most people think a coupon is just for the supermarket. But, you can go online and get coupons for department stores and boutiques to save you tons of money.

The back of the store is where you will always find the sales. They're out of the way and hard to find, but it's where the best deals are.

They can be so helpful. Not only will they give you great information, but they will also let you know when that sale is coming.

Supply and demand dictate price. So the more items that there are, the better chance that they are going to go on sale.

There's a simple formula to use to set a holiday spending budget. Limit your spending to what you net — meaning take home after taxes — in three working days. Let me give you an example. If you take home $52,000 — that's how much you make after taxes — that means you take home $1,000 each week. Three days of take-home pay would equal $600 and would be your budget.

Pay as much as you can in cash. Credit cards will make it easier to fall off the budget wagon. Plus, if you use a credit card, you'll have to pay interest on what you spend.

It's all about when retailers receive their stock. For clothes, retailers get their new inventory every four to six weeks, and they'll mark down the older merchandise to move on Thursday, so that they can restock the shelves for weekend shoppers. So Thursday is the best day to buy clothes.