It is so easy to overspend during the holiday seasons; but, you can avoid this by planning a holiday budget. The first step is to determine how much money you can afford to spend. If your limit is $500, then plan on only spending this amount.

After you determine your spending amount, make a list of every person you want to purchase gifts for. For me, most of my budget is spent on gifts for my two daughters. Besides them, I have a couple other family members to buy for. For the most part, my family has eliminated buying gifts for each other. We have all decided that we do not need any gifts, and none of us really feel like spending money on each other.

Take your list of people, and begin distributing the amount of money you have chosen. Be sure to include everyone, or you will easily go over budget. Don’t forget the mailman, your child’s teacher and little Johnny’s guitar instructor. After you fill this out, determine how close you are to the budgeted amount. If you have not reached the amount, then your list is perfect.

I say this because I know how I am. I do this every year, and every year I exceed the amount I plan to spend. This year – I tell myself – will be different. I have vowed to make a budget and stick with it.

If your budget is really tight, shop around and find the best deals available, or make gifts for people. Many people appreciate the value of a hand-made gift, more than you will ever know.

Don’t let yourself get upset after Christmas, because you have spent too much. Decide now; make a budget; and stick to it!