Go for the Green
Leave your checkbook and credit cards at home so you won't be tempted to impulse buy. Research has proven that people who shop with a credit card are willing to spend as much as 30% more for an item than if they pay cash for that same item. Paying cash will also help you to avoid interest charges.
Set Up a Special Savings Account
Consider a "Christmas Club" plan if your bank offers one. These are basically savings accounts to help people prepare for Christmas spending. They are no different from normal savings accounts except they are designed for users to accumulate savings over a year and to draw it out before, during, or after Christmas. It's of course too late for this year, but keep it in mind for next.
Make a List and Check it Twice
More than just a Christmas list, this should include everyone who will receive a gift. Set a limit for each person on your list and add up the costs to make sure it doesn't exceed your overall spending limit. Try to allow a cushion for unexpected items or price fluctuations. Also include money you'll spend on Christmas cards, postage, holiday parties, decorations, holiday entertainment, etc.
Celebrate Christmas All Year
Avoid last minute holiday shopping by purchasing gifts all year round. Buy gifts when they are on sale or when you spot the "perfect" gift. Take advantage of flea market and thrift store finds and don't forget "Christmas in July" and end of winter clearance sales. If you've already decided on specific gifts for each person on your list you can also take your time and look for sales in the Sunday paper. By December, you won't feel stressed out and you will have the time to concentrate on more important things.
Get in Touch with Your Creative Side
Consider making gifts this year. The most thoughtful gifts are creative, personal, and usually inexpensive. The secret to thoughtful gifts is to be observant all year long to determine something unique for the people on your list. Examples are:
* Food gifts with recipes included (i.e. homemade jellies or specialty breads, a plate of cookies, candies, or a combination of foods that has been divided up).
* Computer gifts (i.e. return address labels with graphics customized to reflect the person's interests, calendars with personalized pictures for each month, personalized greeting cards, or coloring books for children).
* Personalized recipe books
* Mix tapes or CDs
* Christmas ornaments
Emphasize the Real Meaning of Christmas
Reduce the number of gifts you are giving and invite your relatives to do the same. Focus on the reasons that you are giving instead of the amount you are giving. Perhaps you can draw names within your family to reduce the number of gifts to buy. Not everyone will want to cut back on the usual gift giving extravaganza, but it's worth a try.
So there you have it. Avoid being a victim of "holiday hangover" and enjoy the season. Happy spending! *