Save Money over the Holidays

As we prepare for Christmas with its parties, baking, and of course-gifts to unwrap, I'd like to discuss with you some ways we can be live within our means and still have a Merry Christmas.  I love Christmas but it can be hard on your spending plan unless you prepare for it.  Those of you who have prepared for it, give yourself a pat on the back!!  For those who haven't we have some tips that might help.

Holding fast to the idea of a cash only policy which I wrote about a few weeks ago, I'd like to discuss with you a possible hurdle that you may experience at Christmastime.  You may be tempted to use credit because you don't have enough money to purchase all the gifts you wish.  I've heard of families that put all their Christmas purchases on a credit card and spend the next year paying them off...with interest.  The challenge with this is the excitement of the gifts received goes away long before the feeling of paying things off.

Don't be like the young man in the hurdle video and follow these simple tips:

• Analyze your budget and set a target price on each of your family members.  Keep track of your spending on each person so you're not tempted to go over your target price.
• You may have to cut down on the amount you spend on Christmas gifts, but if you explain to your family and stick to your plan it will be easier for them to understand.
• Instead of buying for each person in your extended family draw names and buy one gift for the person whose name you've drawn.
• I know it's early in the morning but Black Friday has proven for us to be a good day to get good deals, and also get started on your Christmas shopping.

Here are some more tips from one of my favorite personal finance websites, to keeping your costs down and avoiding overspending at Christmastime.  With that I'd like to wish you a Merry Christmas and a peaceful Happy New year because you stayed within your spending plan.

Next week we'll talk about how to entertain over the holidays and not go broke.  Please send in your frugal Christmas or Holiday ideas so that all of our readers may benefit.