Making it Through the Holidays Debt Free

It can be an arduous task getting through the holiday season financially unscathed. It's easy to get caught up in the holiday atmosphere of goodwill and cheer and let yourself get carried away on gift giving. Coming up with a plan and sticking to it though can help you restrain yourself when it comes to overspending and getting into holiday debt issues.

While I already consider myself a power shopper when it comes to seeking out the best bang for my buck, I still like to have an outline each holiday season as to how I'm going to make the best use of my money. Here is my plan to make it through the holiday season debt free.

Step 1: Family Discussion

Over the years my siblings and I have typically all exchanged holiday gifts. The whole gift giving thing between us ended up being kind of silly though since we pretty much just ended up exchanging gift cards to favorite restaurants. Therefore, we all got together this year and decided it was best we forget about trading gift cards and just focus our attention upon our children and parents. This ends up cutting four people out of my Christmas shopping effort and does the same for them. It will also end up saving me money since I probably wouldn't frequent those restaurants as often without gift cards and now I don't have to spend the equivalent of the amounts that I typically receive from my brothers-in-law on gift cards for them.

Step 2: Make Lists

Santa has a gift list and so do I. Once I have narrowed down for whom I need to purchase holiday gifts, coming up with a list helps me put some organization to my holiday shopping needs. A list helps me stay focused when I head out to the store and reduces the chance of impulse buys. My holiday gift list also helps to keep me from forgetting great gift ideas I've come up with during lag times between shopping outings and lets me comparison shop for items I'm interested in purchasing.

Step 3: Pay Cash

I like to pay cash for just about anything and everything I can (not just during the holidays but all the time). This allows me to reduce impulse buys by actually having to shell out my hard earned money, wishing it bon voyage as it leaves the safety of daddy's wallet and ventures out into the unknown.

Many people have forgotten that sense of loss as they fork over cash for purchases. I often liken credit cards to chips in a casino. If people had to see themselves laying down hundred dollar bills instead of plastic chips on the gaming table, they might be less inclined to spend as much. In my opinion, the same goes for credit cards.

Step 4: Utilize Discounts

I love to get the most out of my money. Therefore, I make sure that when the holiday season roles around, I start comparison shopping and watching for sales and discounts early in the season. I watch the circulars in the newspaper as well as check for online sales.

I also like to check Amazon.com before I make a purchase from a store since I often find that they offer quality products at typically lower prices and save me the trouble of heading out into the holiday rush to brave the traffic and crowds at the stores. And if I have to purchase gift cards, I try to wait until I find one of those buy one get one free deals (i.e. purchase a $50 gift card, get a $10 gift card free).

Disclaimer: The author is not a licensed financial professional. The information provided in this article is for informational purposes only and does not constitute legal or financial advice. For financial advice, readers should consult a licensed financial advisor. Any action taken by the reader due to the information provided in this article is solely at the reader's discretion.