Making Your Christmas Budget

Tis the season to get ready to shell out big bucks.

The average person will spend about 800 dollars on the holidays.

So what can we do now to prepare?

Here is a plan.

First, decide on a budget depending on what you want to spend your money on. "Do you want to give gifts? Do you want to entertain a lot? What kids of things do you want to do over the holidays?" asks Kathryn Edmonds of the Bond Market Foundation.

Now the even harder part, where will you find the money?

What have you saved but also where can you find cash between now and the holiday.

Can you give up that daily coffee and snacks to save a few bucks or maybe pick up a second job?

The focus on how you will pay. "Before you think about credit cards, think about cash or debit cards or writing checks so the money is coming out of what you're making now," says Kathryn.

And if you have to use credit cards, use the ones with the lowest interest rates.

Or if you pay on time, call your cc company and ask if they will lower your interest rate.

And, be careful before you sign up for another credit card. Kathryn adds, “The offer may sound great because it gives you another way to pay the bill for the holiday, but what it may do is have a very high interest rate. It may require you to have a minimum purchase. It may require you to buy other goods or services."

And number four, prevent overspending.

Think about who you were with when you overspent last year.

If the kids break you down because they really want something, think about getting a babysitter.

It could be well worth it.

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