So, towards the beginning of the year I had actually made a smart decision. The decision was to wise up and follow through on something. This particular idea was one that I usually think about after I’ve completed my Christmas shopping and analyze just how much more debt I have piled on. Begin saving for Christmas by setting up small automatic deposits to a separate account and then when it comes time to buy gifts there is money waiting.

So, again, I actually did it and so now the goal is to stick to the budget. Now, interestingly enough today I read an article on CNN/Money that was about just that…

It was titled, “Top Tips: Debt-proofing Your Holiday” and it lists 4 tips. Now it’s a Gerri Willis article, so it’s already pretty short, however I’ll quickly sum it up (and toss in some of my own thoughts) anyways.

Tip #1: Get Organized

• Two-thirds of Americans didn’t bother with a holiday budget last year
• Almost three in five don’t plan one this year (both from Consumer Reports)

Some financial planners recommend you don’t spend more than 1.5% of your annual income on gifts.

Again, proud to say that I’m already doing this and only by coincidence am I almost close to that 1.5% mark. I saved about $600 for gifts by putting aside a little each paycheck. 1.5% of my net annual income is slightly over $700. Personally, I would like to sock away about $1000 just in case anything and anything left over would be rolled into an additional credit card payment.

Tip #2: Think outside the box

You don’t always need to spend a ton of dough on presents. Think about curbing all those last minute gift impulses by giving a donation to charity in the name of your friend or relative.

Don’t get me wrong – I’m all for charity – but there is something that just doesn’t sit right with me when I think of sitting down to exchange gifts with someone and giving them a card saying money has been given to a charity of my own choosing in lieu of a gift. That option just isn’t for me – sorry if I seem shallow or insensitive. I gave to my church and to St. Jude’s Hospital regularly in past years (reduced/ended contributions to focus on debt), I just wouldn’t do it as a gift.

I’ve also tried spending to set spending limitations with people – didn’t go over well, so that ended that. It’s not that they didn’t understand that I didn’t have money to ‘go crazy’, it’s that they didn’t want to be limited in what they could do/give me. Again – it’s more ‘keeping up with the Jones” , but it’s embarrassing to be given such gracious and sometimes expensive gifts when you don’t have something in kind to offer.

Tip #3: Compare Prices

You can save time and money by shopping online. Plus, you won’t be tempted by all those “Impulse” purchases at the store.

To do some comparison shopping, go to shopping.com and bizrate.com. These sites let you compare products and deals. Plus, if you do decide to shop online, you can often get free shipping.

I’m doing most of my Christmas shopping online – it’s easier to keep track of my spending and compare prices. However, I definitely don’t think it saves you from impulse buying. The impulses are still there and in some cases stronger.

Tip #4: Get the best reward card

If you don’t carry a credit-card balance from month-to-month and you have a good credit score, getting a rewards card that pays YOU back is a nice way to get something back from your holiday shopping.

…yeah, no comment. ; )