Tips to avoid over spending during the holidays

FRIDAY, DEC. 14: December is surely a debit and credit card marathon spending month. Great for the retailers but if you overspend during the holidays you just may end up with post-holiday debt blues in January.

If you are struggling to afford holiday expenses this year I have put together a few tips to consider before your spending spirals out of control.

Budget

A good way to stick to a holiday budget is to have a concise list of everything you need. Start with the names of the people you intend to buy gifts for food items, party essentials etcetera. Estimate the amount of money you will have to spend on all of these items and add it all up. For Christmas gifts, list the names of those you intend to buy a gift and next to each name put the dollar amount that you can afford to spend.

Add it all up; can you afford all of this without going into debt? You may have to avoid a few parties, cut back on your grocery bill, do your own hair and nails for the holiday parties and cut out some gifts.

Pay Cash

When you calculate the cost of everything on your list if you can’t afford to spend that much cash, trim the list.

Do not dip into your savings or emergency funds and don’t use your credit cards.

If you can’t afford it, you can’t afford it – there is no shame in that.

Do you really want to buy this year’s Christmas presents with next year’s money and paying credit card bills in March for items you bought in December? You will be very relieved in January when it is all over and you are debt free.

Shop Around

Many of the local retailers have websites and you can save a lot of time and money by surfing the web. Even if you don’t actually buy the gift on line you can comparison-shop while checking out the best deals.

Do your research – follow your list, call around for the best pricing and quality. Do not put off your shopping until the last minute, this usually results in impulse buying and spending more money than you originally intended.

Be Creative

If you can bake, sew or make something, consider using your talents to make a gift that will be appreciated. I love receiving homemade cakes, cookies, rolls and bread at Christmas and I like to give my friends homemade cranberry sauce which is easy to make. People will remember you for the thought and care you put into a gift that you made yourself.

Avoid Gift Certificates

Unless someone you are buying a gift for has requested a specific gift certificate or you are 100 per cent sure that the recipient will use it, avoid buying a gift card or gift certificate. A lot of people put them away upon receipt, never get around to using it and there goes your hard earned money, down the drain.

Honey Adams is the education officer for Consumer Affairs.