The holiday season is generally associated with the buying spree, fast sell-offs, year-end sales and big revenue for retailers. It is estimated that during the 2008 holiday season, each American shopper will spend about $832, compared with $817 last year. A slight increase of 1.9% shows that current economic situation leaves much to be desired. Retailers expect cutbacks by middle- and even upper-income customers. Anyway, holidays will go on and U.S. people will celebrate and will buy things. The question is, how to create a realistic holiday budget and stick to it? Read on for more information.

For most people, year-end holidays are the time of joy, happiness, gifts, lights, and decorations. Everyone is so charmed with this atmosphere that he or she is tempted to break all the rules at least for a season. Consumers are enticed to buy more and more items, and some of them may end up paying for their holiday purchases beyond months and even years. Is that really worth it?

Financial experts share the opinion that shoppers need to get organized if they don’t want to overspend on spontaneous purchases. If you don’t set a budget with a specific limit, your spending will grow and grow, so that next year you’ll be horrified to see your bills.

First, take you time to make a list of all the items you usually buy, including gifts, food, travel expenses, entertainment, and others. Secondly, you need to keep track of your purchases and make sure you stick to your budget. If you don’t track it, you have just wasted your time.

One of the secrets of a cost-effective holiday shopping is to start early. The best time period for holiday shopping is from October till early December. As a rule, last-minute shoppers overspend, as they buy the next item they see regardless of its cost. You need some time to compare prices and shop around for the best deal. Shop at weekends or online. It’s much more convenient and saves your priceless time on top of that.

Most consumers put their holiday purchases on credit cards. If you are one of them, you can take advantage of your plastics. For online or offline shopping, use no more than two cards. Select low interest rate plastics. It will be great if they provide an interest-free period – you can save a considerable sum of money on interest. Most credit deals come with some kind of rewards. Examine the details of your rewards programs, and choose those locations where you can get most rebates. Big spending – big saving! Why don’t you use this opportunity to get your money back?

If you plan to fly to see your friends or family, you can save a lot on the airfare if you have an airmiles credit card. Some deals that provide airmiles programs allow earning valuable miles by making purchases in popular categories, like groceries or gas. Review the terms of your contract and figure out how to make the most of your card, where you can get most benefits. The key is not to spend much, but to shop at those locations where you can receive most rebates on eligible purchases. Again, you should stick within your budget. Estimate how much you can spend on holiday gifts and celebrations and try to fight the urge to spend more than you can afford. Doing this will prevent you from new debts in the new year! Read more …

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