Holiday Shopping Budgeting Help

The holiday season is known as the most wonderful time

of the year. Ideally, your finances should stay in

wonderful shape throughout the season, but this is hardly

the norm.

Consumer counseling agencies report that, in January and February,

theres a 25 percent increase in the number of people who

need help with debt. This increase is largely fueled by

the holiday shopping season.

If you create a holiday budget ahead of time, you can stay out of financial hot water.

Here are six tips you can use to create a holiday budget

and stick with it.

Start Saving as Early as

Possible

Holiday shopping usually begins on Black Friday, but that doesnt mean you cant

start saving money well before then.

If you open a holiday savings account, you can deposit

money into it throughout the year and even earn interest

on the account.

Create a Spending

Plan

Create a list of all your holiday-related purchases, whether theyre gifts, food,

travel expenses ordecorations.

Decide how much youre going to spend on each item.

Once youve locked in a number for each item, youre

in a better position to avoid overspending.

Make a Shopping

List

Now that you have a budget, its time to make a list of

everyone youre going to buypresents for. Make a note of

how much you want to spend on each person.

Its possible that youll want to spend more money on

certain people than on others.

Prioritize your gift giving, and if you feel that your

finances are stretched thin, dont be afraid to tell some of

the people on your list that you wont be exchanging gifts

this year.

Come Up With a Creative,

Zero-Cost Gift

You can give a gift without needing to buy a gift. Make

something of your own, using whatever natural talents you

have. You can make a scrapbook, compose a short

story or knit a scarf. The possibilities are endless.

If you have an old holiday present that someone gave

you years ago, yet you never use it, consider re-gifting

that present to someone who might actually appreciate it.

Dont Wait Until the Last

Minute to Shop

You want plenty of time to compare prices and find

great deals. If you wait until the last minute, youre going

to be rushing through the store, exhausted and stressed

out.

Youll also be more tempted to spend money on gifts

without considering how much they cost.

Use Credit Cards

Sparingly

If you have to use credit cards, dont use more than

two. That will make it easier to keep track of your

spending.

The cards you use should have low-interest rates. Stay away from cards offered by

department stores.

If you have a credit card with no balance, use that one to

pay off your upcoming balance in full. Use the other card for purchases that you

intend to pay off over the coming months.

Spending money is arguably the most stressful part of the holiday season. If you begin the season with a financial

plan in place, it will help take some of the burdens off of

your shoulders.

Use these six tips to create a holiday budget that works

best for you.