Early Preparation Yields Big Savings

Budget now for holiday gift giving?

In September?  Yes!

It may seem that this article is a little early however, planning now and budgeting for the holiday gift giving season is a smart thing to do and will pay huge dividends when it comes to shelling out those dollars for gifts, cards, decorations and wrapping paper in November and December. Planning now also gives you more time to shop for bargains and you can take advantage of an old idea that is newly popular; lay-away programs available at more and more retail and on-line establishments.

Shopping for gifts doesn't have to lead to financial stress. Learn how to budget your holiday gift spending and make this the year that you finally come in on (or under) budget. Follow our tips below and remember:

• Don't be afraid to make changes to your budget – a good budget is always evolving.
• Hang on to a copy of your gift budget after the holidays are over; it will be helpful in planning next year's budget.
• Use the Holiday Spending Worksheet below to establish an overall holiday budget.

Tip #1 Create a Budget. Creating a budget is one of the easiest ways to curb overspending and make sure there is sufficient money to pay for purchases. It is important to create a realistic gift list and a desired amount to spend for each person.

Tip #2 Avoid Impulse Purchases. After the creation of a budget, stick to it. Do not allow impulse buys to ruin the budget. Make sure to set aside extra money for entertaining, travel, decorations and food. These items can really blow a budget despite wise gift shopping.

Tip #3 Consider Last Year's Expenses. It is a good idea to review last year's expenses in order to help budget more efficiently; consider what actually was spent versus what was allocated.

Tip #4 Shop Early and Compare Prices. In order to keep a budget on track and avoid overspending, do holiday shopping early. Look for sales and make sure to compare prices between different retailers.

Tip #5 Avoid Borrowing Funds. Do not fall into the trap of charging when there is not enough money. If it is impossible to avoid using credit, try this easy tip: record credit card expenses in a checkbook register and enter the amount of every purchase, just as if writing a check. Keeping a tally of a mount­ing balance should deter overspending.

Tip #6 Steer Clear of High-Interest Credit Cards. Make sure to choose a credit card with a low-interest rate and pay off the balance as soon as possible. If the full payment is too much, make partial payments, above the minimum balance, until the debt is gone. The best way to avoid credit card debt is to spend wisely and pay with cash or a debit card.

Tip #7 Take a Part-Time Job for the Holidays. Taking a part-time job during the holidays is a great way to ease your financial burden. It will generate extra money for gifts and many part-time jobs, especially in retail, can be found during this important shopping period.

Tip #8 Know When Your Time is More Important than Money. For example, have someone else wrap the gifts for you. Often non-profit organizations offer gift-wrapping booths in the mall. Take advantage of these types of opportunities and you may just have more time to spend with family and friends.

Tip #9 Be Creative with Gift Giving. When money is tight, consider alternative gift giving ideas. Search the internet for “making gifts for the holidays” for hundreds of ideas for family, friends, teachers and co-workers.

Tip #10 Plan for Next Year. Starting a holiday or Christmas club account is an easy way to prevent being left with insufficient funds or debt after the holiday season. Throughout the year, have money deducted from your paycheck and put into an interest bearing account that will mature in October. If your bank does not offer this type of account, set up an extra savings account for budgeting money.