The holidays are a joyous time of year, but arguably one that has the greatest impact on your finances. Hosting parties, traveling to see loved ones and of course, buying gifts, can add up quickly! To avoid a huge holiday shopping hangover in January, it’s important to be mindful of what you purchase in December – and how you pay for it. Holly Perez of Mint.com shares 5 tips to keep your holiday spending under control this season…without coming off like a Grinch:

1. Set a budget. It’s easy to get swept away in the shopping frenzy and end up spending more than you can afford. Before you start, develop a realistic budget and designate a specific amount for each item or person on your list. Use a free, online personal finance management tool like Mint.com, which lets you view spending by category while on the go and see how holiday shopping affects your overall net income.

2. Research before you buy. Determine where the items you want to purchase will be the most affordable and what time the stores are planning to open. Then, map out a plan of attack accordingly. Being knowledgeable about what you’re shopping for will also help you avoid being lured into impulse purchases. Before you head to the cashier (or online checkout), make sure your purchase is within the budget you set.

3. Save on entertaining. Don’t let entertaining bust your budget. Before investing in new holiday decorations, take inventory of what you already own and make a detailed list of what you need. Save even more by heading outside to collect natural decor such as pinecones and holly. Get creative by filling a clear vase with cranberries, holly and fresh flowers or spray paint the pinecones to create a festive centerpiece. And when it comes to creating an elaborate and expensive holiday meal, why not host a potluck? This way, you’ll only be responsible for the cost and preparation of one aspect of the meal.

4. Do it yourself. DIY gifting can be a heartfelt way to show your appreciation of others. There are countless creative ideas from sites like Pinterest.com. Remember, it’s the thought that counts. And with a little time and elbow grease, you can create great DIY holiday gifts your friends and family will appreciate without breaking the bank. It’s easy to lose control of your finances during the holidays, so why not get in front of it this year? Here are a few more ideas from The Daily Worth on giving gifts that you’ll feel good giving.

By following these tips you’ll be surprised at how easy it is to fully enjoy the season’s festivities while tracking toward important financial goals such as reducing debt, increasing savings and avoiding that all too familiar holiday hangover.

Posted on 12/5/2013

Written by Holly Perez

Holly loves helping people better manage their money with her work with Quicken and Mint. You can also find her chasing after good bargains and her two boys.

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