“I love the holidays! What make them extra special are the gifts I receive. Speaking about gifts, as much as I love receiving them, when it comes to returning the favor it burns a deadly hole in my pocket”

- Anonymous

It’s getting near the time of year again where thousands upon thousands of consumers will be flocking to retail stores for holiday gift items or to find those once a year sales we just can’t seem to resist.

If you’re not careful, this spending can lead to some major financial issues for the New Year.

So, here are a few tips to help you spend within your means and avoid the post holiday spending blues:

1. Budget your holiday spending.

Decide how much you can afford and then stay within that budget. It will be easier if you make a price list for all gifts and other holiday items you plan to buy, such as food, decorations and postage. Be realistic when making this decision. If you do not have $1,000 extra cash then you will need to decide on a lesser amount.

2. Make a list and check it twice.

Come up with a gift idea and spending range for each person on your holiday shopping list. Don’t forget to include holiday decorations and entertainment costs to this spending plan for the holidays.

3. Curb your spending.

This season opt for some low-cost but attractive gifts. Just because you’ve always been known as a fabulous gift-giver, it doesn’t mean you go overboard with your spending.

4. Be the early bird.

Start shopping before the holiday season begins. Not only will you reap cool bargains, but it will also provide you with ample time to comparison-shop. Discount coupons, shopping offers are what you should be on the look out for.

5. Don’t be your own Santa.

This is a very common holiday budget buster. When you are shopping for gifts, it is easy to be swayed by something that would be perfect for yourself. Don’t buy it! Instead, put it on your wish list or wait until after the holidays to buy it on sale.

6. Avoid frenzy spending.

Crowded stores and Christmas bargains can lead to “frenzy spending,” an adrenaline-fueled state of financial black-out where you buy things you don’t really want or need. Avoid overspending by checking prices online first, sticking to your shopping list, and avoiding the most crowded retail days.

7. Plan a route.

Knowing where you are going and how you are going to navigate your day ahead of time can help you avoid long traffic lines, or long lines at stores. Starting earlier in the day usually helps avoid the last minute rushes.

8. Relax and pace yourself.

Take a deep breath, relax and pace yourself. Overly rushing can lead to poor purchasing choices that can cost you in the long run.

9. Chuck credit facilities.

With the holiday season approaching, many companies provide deferred billing options, allowing you to shop now and pay the bill three to six months in the future. What you might not realize is, if you can’t afford items now you won’t be able to afford them when the bill arrives, either. Pay now, instead.

10. Pay with Cash.

Many people find it extremely useful to be able to “see” the money as they are spending it. Paying with cash causes them to consider purchases much more carefully than if they were paying with credit cards. Simply take your budgeted amount with you when you go shopping. When it is gone, the shopping should be done. This is a great method psychologically speaking.

11. Don’t go deeper into debt.

If you are already struggling with debt issues , do not use the holidays as an opportunity to make things worse. This isn’t a good time to go off your “debt diet.” Instead, find ways to make or buy inexpensive gifts. Look for good sales and get creative. You’ll be glad you did in January.

12. Pay off debts as quickly as possible.

If you must make holiday purchases using credit, early next year pay off this debt as soon as possible. Remember that credit card debt is relatively expensive. You may not realize your card’s grace period – the time between your purchase and when interest is charged – doesn’t apply if you’re carrying over a balance. And if you only make the 1.5 percent required monthly payment, you probably will never pay off the debt.

13. Watch out for identity theft Grinches.

Identity thieves love the holidays! Many busy consumers stop paying attention to their credit and personal information, leaving a big window for theft. You can guard against holiday identity theft by shredding receipts, and catalogs, reviewing your statements closely, and checking your credit reports.

14. Put your talents to some use.

If you’re the artsy or crafty type, use your creative skills in making a gift for your loved ones. Not only will it be appreciated much mores, but will also substantially reduce your holiday-related spending costs.

15. Focus on the frugal.

Some of the best holiday fun is virtually free! Invite friends over for hot cider, make popcorn garlands, watch “It’s a Wonderful Life” on TV. Remember: no matter what holiday you celebrate, retail is not the reason for the season!

16. Group gifting session.

Get your friends to participate in a secret buddy gift exchanging session. All you got to do to choose a secret pal, is write their names on slips of paper, put them in a bowl, and then pick one name each. With a limit on the gift prices, now you end up wishing all your friends fair and square. Buying just one instead of several is a huge way to keep your costs down.

17. Give a great party.

One way to give everyone you love a great memory is to give a great party! Spend the money you normally would on gifts by throwing a holiday bash instead! This could take place before Christmas or for the New Year. Make sure to have great food, interesting drinks and festive decorations. Then surprise everyone by making a toast somewhere in the middle of the bash, telling all of your guests how much you care about them. In fact, why not use this opportunity to single out your friends and share with everyone why they are close to your heart. Memories last a lifetime!

18. Gift Certificates.

Gift Certificates are a great way to manage your finances while allowing your loved ones to pick out their own version of the perfect present. You can personalize a gift certificate by picking stores that cater to your loved ones’ interests. There’s a store for everything, and almost all of them offer gift certificates. So set a limit and buy a gift certificate – even if it is only for a few dollars, it will make it easier for your friends to buy something they will love!

19. Plan for next year.

While Christmas Club accounts do not pay much interest, they provide a practical way to save small amounts over time. Ask your credit union or bank to automatically transfer funds from your checking to your Christmas Club account every month. The discipline of saving reinforces your good budget intentions.

20. Give your best.

Don’t be stressed by your lack of finances. Always bear in mind that even the best present you purchase won’t compete with your presence. Make time to hang out with family and friends. Then wrap up the memories, and share them from year to year.

The bottom line is to develop and stick with a holiday spending plan, so that you can enjoy the holiday season without suffering a financial hangover.

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