How to Reduce Your Holiday Spending

Step-by-Step Guide

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   Step 1: Make a holiday budget.

   Write a list that includes everybody you plan to buy for, then decide how much you can reasonably spend on each person.
   
   Include the cost of small gifts such as stocking stuffers or gifts for your hairdresser or your child's teacher, as small gifts can nickel and dime your budget through the roof.
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   Step 2: Pare down your list if things are escalating out of control.

   Send a card or make a batch of cookies instead, or talk to your family members and suggest a "kids only" holiday.
   
   Have a gift exchange with a reasonable limit, as buying one gift is cheaper and easier than buying several.
   
   Chances are, your family members are in the same boat and will appreciate the opportunity to cut back. , Provide a main dish and ask your guests to bring the extras.
   
   Consider throwing a holiday white elephant party, which are loads of fun but don't have to cost a single penny. , Waiting until the last minute is stressful and doesn't allow time for shopping the sales or comparison shopping.
   
   Harried shoppers tend to buy nearly anything just to get the job done. , Sometimes, a good deal may not be as good as it seems after shipping is factored in.
   
   Watch for businesses who offer free shipping during the holidays. ,, Gift cards for books, sporting goods, a movie or a favorite restaurant are nearly always appreciated, and you save gas, time and shipping costs, which mount up quickly. , While a 10 or 20 percent discount on today's purchase might sound good, store cards charge high interest that will be very painful if you can't pay the balance immediately.
   
   If you get carried away and can't pay the balance on the high-interest store credit card, transfer the balance to one of your credit cards. , Stock up on cards and decorations for next year.
   
   Don't forget to include after holiday expenses in your holiday budget.
   
   You may even score some inexpensive gifts for next year, or for gift giving throughout the year. , Present your loved ones with a coupon for a lawn mowing, dog walking, babysitting, a car wash or a back rub.
   
   Gifts of your time are especially appreciated by your elderly friends and family.
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   Step 3: Have a potluck get-together during the holidays in lieu of gifts.

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   Step 4: Start your holiday shopping early.

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   Step 5: Take advantage of price breaks by doing part of your holiday shopping on line

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   Step 6: but always take the cost of shipping into consideration.

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   Step 7: Use cash or a debit cards as much as possible

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   Step 8: and reduce your holiday spending by leaving your tempting credit cards at home.

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   Step 9: Consider gift cards

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    Step 10: especially for family and friends who don't live nearby.

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    Step 11: Be extra careful if you apply for store credit cards.

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    Step 12: Look for after-holiday sales.

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    Step 13: Gift creative

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    Step 14: thoughtful gifts of your time.

Detailed Guide

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