Plan Ahead for The Holidays

I know that you still have up your Christmas lights and are still eating left over ham, but now is the perfect time to plan ahead for the 2011 holiday season.   The holidays aren't an unexpected expense - you know they are coming.  They arrive at the same time every single year.  So, start planning NOW to have a less stressful (financially at least) 2011 holiday!   Here are three ways to plan ahead:

A penny saved is a penny earned.   We use cash to pay for nearly everything.  This means I am always getting change back on my purchases.  I actually never spend my change -- I keep it!  I have saved $150 - $200 every year just by doing this.  You will be surprised at how much money you can accrue in just 11 short months!

Review your 2010 spending.  The best way to know what you will spend for 2011 is to just take a look at what you spend for 2010.  I normally increase our total by about 5-10% (to account for inflation or deals that I got I won't get again next year).  Then, divide that total by the number of pay periods you have annually:  26 if paid every 2 weeks, 24 if paid bi-monthly or 12 if paid monthly.  The dollar amount you see should look pretty reasonable.  Just transfer that amount into your savings account every pay period and before you know it, you will have saved up and will be able to pay for all of your gifts with cash.

Watch for deals all year long.  While you won't know for certain what item your or your family members will want in December, you do know of things you will need such as wrapping paper, gift tags, etc.  You might also be able to put together gift baskets.  Or perhaps you are crafty and can create home made gifts.  Keep your eyes open all year long for the clearance deals you might see in your stores.  You never know what treasure you will find -- and find a great deal on it to boot!

By thinking ahead right now, you can save yourself a lot of stress come November, December and even January - when the credit card bills come a knockin'!