Although your intentions are good, you are likely to overspend again this holiday season. You probably know you should set a holiday budget, and you may have written expected costs next to each item on your shopping list. However, even if you enter the holiday shopping season with a budget in mind, it can be very difficult to stick to it!

In most cases, people tend to rationalize overspending. You and I both know that money is no substitute for love, but may feel the need to spend equal amounts on each recipient to avoid the impression of favoritism. Or we feel pressured to spend a certain amount of money because we were especially generous last year. Before you start shopping, have a family meeting, so everyone will know what to expect.

Start fresh, and take your current financial situation into account.  Nothing you could buy feels as good as starting the New Year in the black.

Here are 5 tips for a Debt Free Holiday Season:

1. Budget Everything – Not Just Gifts

If you want more joy and less stress this holiday season, create a holiday budget that includes decorations, cards and stamps, food for parties, holiday clothing and dry cleaning costs, babysitting, teachers' gifts, and year-end tips for service people. Gifts are only one line item, and they may not be your biggest expense.

2. Spend Time, not Money

Parents tend to make costly decisions when they're rushed. Plan a family trip instead of buying gadgets. You'll treasure shared memories long after today's technology is obsolete.

3. Leave the Credit Cards at Home

Leave credit cards at home to avoid overspending. Studies show people spend about 15 percent more when they pay with credit cards. If you must use a card, carry only one.

An even better idea is to bring cash! Maximize savings by carrying large bills, not a pile of ones, fives and tens. You'll be less likely to break a $50 bill to buy a latte or a silly stocking stuffer.

4. Write Down Each Purchase

Often, we don’t realize how much we are spending as we shop through the mall.  Take the time to write down each purchase as you make it.  This will force you to think before buying that extra little item you see.

5. Don’t Buy Gifts for Yourself

Try to avoid the “One for thee, and one for me” mentality. According to the National Retail Federation, shoppers spent an average of $108 on themselves last year. When you see something you like, write it on a wish list. You'll be ready when your spouse and kids ask what you want, and they will be happy to buy something you'll really enjoy.

Focus on having fun and making memories, not on buying more stuff this season. When you do, you'll make your family rich in the ways that really count. The true holiday spirit is in your heart and your home, not at the mall.

Picture it.....

Black Friday 2011.....

Not only have you paid off your credit card(s), you got an increase in your credit limit?  Awesome!  Uh-oh, there goes the evil laugh.  Oh, no--there goes the hands slapping together and rolling around while you contemplate what kind of shopping you could really do.  Yeah, you can just picture it now--remember that flat screen t.v. your spouse has been salivating for?  What about those earrings your mom has been wanting?  And Aunt Sally wanted that  purse she saw at Nordstrom's?  O, your daughter wanted a gift card to Victoria's Secret--be sure to add enough money on it because what girl can buy just one item from there.  You grab your wallet and car keys. . .Wait!  Don't walk out that door with your credit cards, you will develop a permanent foul taste in your mouth as it becomes Debt Friday when next month's bill comes.  Here are some ways to enjoy this holiday tradition without breaking the bank.

Envelope Method

In order to keep on top of your debt--no matter how small or how big the breathing room is--you must leave your credit cards at home.  Banks know how temptation works, and that is why they increase your credit limit; they hope to keep you under their thumb for years.  To keep Black Friday from becoming Debt Friday, use the envelope method to figure out how much to set aside for each bill--including gas for your car(s) and food--and put that money in their respective envelopes.  The rest can be used for Black Friday.

Christmas List

Everyone writes down what they want on a Christmas list.  While many people are very conservative because of our economy, you don't have to be stingy.  Your daughter wants a Victoria's Secret gift card, your spouse wants that flat screen, your mom wants those earrings, your aunt wants that purse from Nordstrom's, and so on. . . .Make it happen in your family:

• Get family to pool money together--each person can contribute a little in the pot for that one really cool item each person wants.  
• Stick to your budget--if pooling your money is not an option, than consider your gift giving carefully.  You don't want to buy something that is just going to sit in the back of someone's closet.

Black Friday or Debt Friday?

You don't have to have a coronary next month if you keep your credit cards at home.  Keep your money close as you enjoy Black Friday.

photo by: gadgetdude