How to Not Go Broke Christmas Shopping

With Christmas fast approaching, I have great method of keeping your finances under control. First things first, here's a dirty little secret that's not talked about. A lot of people who don't spend a lot of time shopping during the year suddenly spend a lot of time leading up to Christmas shopping around in stores. And half of all spending that people do when they are out shopping for others ends up being items that they buy for themselves. They spend a dollar and 50 cents goes to them, 50 cents goes to someone on their list. Now that's not every person, but it's a typical pattern that holiday shoppers fall into because they're not out there all the time. So be honest with yourself. Come up with a list and I've got multiple steps for it.

Difficulty: Moderately Challenging

Instructions

1. How much money can you afford to spend for yourself and for others for Christmas or Hanukkah. How much? Has it been a tough year and there's nothing? Maybe $200? Has it been a good year and the budget is $500? $3000? $1500? Whatever it is, come up with a figure and mean it. That figure you need to stick to. Otherwise you have the January hangover effect. You know about that. You buy and buy and buy and you can't pay the bills. Come up with a realistic budget that will not mess up your finances.

2. Put everybody's name on your list who you plan to buy for, including yourself! Now this gets REALLY cold! By each persons name, put down how much money you want to spend on him or her. If you think you should spend five bucks on somebody write that. Twenty bucks on somebody, put that. Fifty bucks, put that. Whatever it is, put that next to the name. And then add up all your totals. Let's say you had that $500 budget and your names add up to $650 bucks...pushes come to shove. You gotta shove some people off the list or reduce the amount by each person's name (including your own). Get it to fit! Be real with yourself. This is how you make it real and stay in control.

3. When you finalize this list, you fold this piece of paper up. And guys, put it in your wallet. Ladies, put it in your purse. When you're out and about and you see something that's perfect for [fill in the blank] and you buy it, you pull out your list, if you've overspent, you CUT somewhere else...if you've underspent, you PUT money somewhere else. The whole idea is to have that budget and do not flex on it. Only flex on what you spend on each person.

4. If you know you are one of those people who cannot control your spending, if you've got plastic in your purse or credit cards in your wallet then before you go out shopping, purge the plastic from your possession and carry cash. Cash cash cash! When there's no more cash, there's no more purchases. Whatever it takes for you to control your spending, do it!

Tips & Warnings

• This isn't as much fun at the time as spending willy nilly without a plan or a budget, but it's just like people who go to Green Bay and tailgate at Lambeau Field and party too hard before a Monday Night Packer game. The next day they don't remember much about the night before but they feel lousy! I don't want that to be you come January. That you don't know how it happened, but you own Discover, Visa, and Mastercard so much money.
• Don't buy so much over Christmas that you can't handle the bills! Don't let that be you.