It’s that much awaited season of the year again. Perhaps there’s no other time in a year when people give a lot so much. In fact, every year billions of dollars are spent on Christmas and other holiday gifts in the US alone. Add to that figure the millions of others who also share the passion of gift giving each Christmas around the world.

However, money spent on these gifts are actually borrowed on credit. That is why after the holiday seasons, many people face post-holiday stress due to the huge amount of debt, making the joy that the season brought short-lived and seem negligible.

This year, it doesn’t have to be that way. We can do away with our old, unpleasant habit of buying on impulse, using money that we actually don’t have. There are ways to spend our money this holiday season to help us enjoy the spirit of merry-making and gift-giving without having to regret indulging in them later on. After all, ‘tis the season to be jolly and it is one of those times of the year when we can truly bring joy to our loved ones and friends.

Sticking to your budget

Make this year’s holiday season the start of a new and smarter spending habit for you. Start by creating a list of what you need to buy – the gifts that you absolutely need to get – and stick to the list. If you plan on spending only $400 on gifts and another $100 for other holiday items, don’t go beyond those limits.

The hunt for Christmas bargains

To maximize your budget, always look for a great bargain. The gifts or the items that you have on your list might be up on sale somewhere. Take the time to find them. There are tons of resources that you can use to find where the great bargains are. Start by checking online stores such as Microsoft Bing and other online merchants. Also keep in mind to check your list twice, just like good old Santa. Doing so would let you determine who to prioritize. As a rule of thumb, children come first. So remember to put the children’s names on top of your list

After determining your projected expenses, including party costs and gifts, go back to your budget to see what you need to keep on the list and what needs to be weeded out. It’s best to leave your list for a while after initially creating it. In fact, leave it for a couple of days. When you come back to it, there’s a great chance that you will find entries that are not really necessary, further cutting down on your projected costs.

Shop with cash

To keep your post-holiday heartaches at a minimum, shop for gifts and holiday items using cash. When you’ve finalized your budget, see how much cash you’ve got and see if your cash fund is able to cover your budget.
If you need to use your credit card to purchase gifts and other items, be sure to have a solid repayment plan so you can start the New Year by fully paying your holiday bills and be as debt-free as possible in 2010.