In your Christmas planning, you need to set boundaries. Remember, you can’t buy everything for everyone. Yes, Christmas is a time to show certain people your concerns, feelings and gratifications about them. It’s fairly easy to use price tags to express sentiment, but it’s important to set a realistic budget ahead of time.
Know exactly how much you can spend in total on gifts, events, and other holiday expenses before you start swiping a credit card and STICK TO IT!

Make a list of all the things you will need in advance:

Try to assign limits based on your previously created budget. Stick to your list and avoid impulse purchases

Think about buying certain gifts in volume. From a retail perspective that could mean utilizing offers such as “2 for 1” promotions. Consider teaming up with friends to increase buying power when buying bulk items. Buying in volume can reduce prices considerably, and you don’t need to be stocking a warehouse to get a deal.

There are several “Green Ideas” that make sense for the environment but also make a lot of sense for your bank account.

Doing all of your Christmas shopping on Christmas Eve won’t work out too well. There is no point in waiting until the last minute to get your gifts it will never work. You can definitely survive the holiday shopping season financially with effective planning. The smartest Christmas shoppers will be buying Next year’s gifts in January.

Shop prices before committing to a purchase. Don’t buy from the first store, take your time and really look around. Utilizing the internet and other various comparison shopping engines via your phone or other mobile devices will help you to find the best deals. Keep an eye on brochures and discount coupons. This will help you save on everything you need for a great Christmas.

Separate your budgeted Christmas fund and avoid over extending yourself financially. Over spending via your credit cards will mean interest payments on top of the holiday spend. Be smart, stick to your budget, and manage your allocated funds carefully.

If you intend to celebrate Christmas away, then you need to think about travel expenses. If the trip is unavoidable, you can save on expenses by choosing the least expensive mode of transportation, early bookings, etc. Travelling in any holiday peak period, particularly, Christmas, is generally stressful, crowded and expensive too. It is better if you plan the Christmas visit for a week or two after or before the holiday. Last minute deals may also pop up if you have the brass to hold out.

Don’t go through all of the trouble of creating a budget, making a list, researching prices, and shopping around, only to lose track of your progress. Be diligent about tracking your progress by recording all of your shopping and holiday related costs. Being informed about your financial situation is the key to being financially healthy. With small amounts being spent here and there, your overall budget can really run away from you if you are not aware of the bigger picture at all times. Keeping a record in your smart phone or in a small book and keeping it with you will help ensure that you stay on track.

By following all of the tips listed here you should be able to survive the holiday financially. If your budget has already run away from you, consider the advice for next year. It’s important to not give up, improve your financial health and of course enjoy the holidays.
Wishing everyone a happy holiday!

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Article Provided by Scott Hersh, business blogger for BCA Blog, the official blog of BusinessCashAdvance.com, leaders in merchant financing.

Whether you plan to tuck money away in savings accounts, IRAs or even fixed rate bonds you may be having second thoughts and for good reason. The way people are spending is completely changing because of this situation. You aren’t alone in wondering what this downgraded credit rating given to the United States means to you.

What does a downgraded credit rating means? Lending money is a risk. There are some consumers that pay back everything that they borrow with interest. There are some that end up defaulting on the loan. In this case, the lender ends up losing money and isn’t always able to the recoup the funds. It helps to know in advance whether a person or business is a risk worth taking.

When the United States’ credit rating was downgraded, it made many lenders a little wary. People already feeling the insecurity of a struggling economy have become even more worried. No one knows what the future holds, but most people believe that there is more bad news to come. Insecurity ran from the top of the financial world all the way to the bottom. Now it isn’t just the US that seems like more of a risk. It is also the United States consumer that has been downgraded as well.

Many families will find themselves paying more when their credit card bill comes in the mail. One of the major effects of credit rating downgrade is that interest rates are going to rise. If your credit isn’t great, you may have noticed that the interest rate for a home or a car is more. Now the US consumer, being considered a higher risk, is going to have to pay more interest on their credit cards.

More of the family’s budget will go to paying the minimum balance on the credit cards. Some who were working towards paying them off and adding to the principal may need to stop in order to just make the monthly minimums. For a family living paycheck to paycheck, this can be huge. It might mean cutting other parts of the budget in order to try to meet these payments and not lose out on their own credit rating.

One of the first things that families and individuals tend to cut in a family budget is savings. Who has the money to purchase fixed rate bonds when you can’t even make the payments for things like your credit card, your electricity or your car?

People tend to look at all the things that they spend in a month and start cutting things considered to be luxuries. In this case, savings accounts don’t put food on the table and don’t require a deposit, so they are one of the first things to go.

Unfortunately, unsure times are one of the best times to save. If you don’t know what is around the corner, you want to have enough cash set aside in case things get worse, or you notice that there is less money coming in or more money going out. If you just keep money at home or stop saving all together, you miss out on the opportunity for your money to work for you.

Savings accounts, IRAs and fixed rate bonds let your money work for you. When you place money in these accounts, you earn interest without really needing to do anything. When times are unsure, this is one way that you can give your money a limited amount of security and expect that it will be able to do good things for your overall financial situation.

While times may come which force you to cut back on your savings and investing, don’t give it up all together. Even if you can only deposit in small amounts, keep making those deposits.

There is a way to keep moving in the right direction in spite of the credit rating drop in the United States. Take the time to tighten the belt and make cuts in your spending where you can. Figure out where your money goes every month.

If there are places that you can make cuts or reduce the amount of money that leaves your home, you will be in better shape. Instead of giving up on savings accounts and fixed rate bonds, consider skipping eating out or some forms of entertainment that could be costly.

Your minimum payment and interest rates on credit cards are going to go up. Because of this, use it as a motivation to get the balances paid off as quickly as possible. If you don’t already have a plan, come up with a way to get the balance paid down so that you no longer own money to the credit card companies. Then you can work to learn how to manage your credit responsibly.

Things will turn around eventually. Over time, credit ratings will realign and economies will once again feel an upturn. When that comes, you will have learned so many valuable lessons that will help you to be a better consumer and a person who continues to strive despite a down turn in the economy.

As you look around, you probably can see that there is a lot of worry and uncertainty in the future. Now, more than ever, it is more important for you to take a look at the way that you spend and save. Look at your investments and make sure that you have made the best decisions possible for your money. Things may get a little worse before they get better, but things almost always rebound. There is just no guarantee of when, or how, it will happen.

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Article provided by moneysupermarket.com, the UK’s number one comparison website where you can compare a range of savings products from stocks and shares to fixed rate bonds.

So how do you go about identifying the best savings interest rates? Probably the first place to start looking is at your local brick-and-mortar banks. If a bank advertises a high yield savings account, this means that in the bank’s view it is a competitive account. The bank will claim it has a high APY (annual percentage yield), but you will need to compare it to rates offered by other banks in order to find the best savings rate.

If you do find a local bank offering a genuinely attractive interest rate, you may find that you are not eligible to apply for one of these accounts. Most banks are selective about the customers to whom they offer a high yield savings account. You may need to be an existing customer of that bank, or meet their criteria about the type of accounts you hold and the way you conduct your accounts. If they do offer you an account, they may require you to make a sizeable initial deposit, or they may set a minimum period during which you have to maintain a high balance without making a withdrawal.

If you cannot find a local bank that will offer you a favorable savings interest rate, the next place to look for a high yield savings account is online banks – that is, banks which only operate online. Most online banks are easier to sign up to than traditional banks, and offer better savings account interest on average. You need to use a reliable comparison service to find the best savings rate offered by an online bank. However, there are other criteria you need to consider besides the annual percentage yield. It is important to study the small print carefully before making a commitment.

One of the issues you need to check is that of fees. Find out whether the bank charges a monthly maintenance fee, or charges fees for using its ATM machine. Some banks will increase their fees if your account balance falls below a certain minimum, and these fees may total more than the interest you earn. You should try to choose a bank that offers a low opening balance and does not set a high minimum balance requirement, and if you can find one that also offers a cash incentive for opening an account, so much the better. Finally, look for a bank that compounds interest daily, rather than quarterly or annually, which would adversely affect you if you wished to withdraw funds.

Opening a high yield savings account with an online bank is very quick and simple, and it is much easier to get hold of your money if you need it in a hurry than it would be with, for example, a CD (certificate of deposit), or with stocks and shares. However, if you do not expect to withdraw your funds early, you can find excellent savings interest rates by investing in a high yield Certificate of Deposit, at least for a portion of your savings. Yield rates are usually higher than those for a savings account.

Without savings, you will find life difficult, especially in retirement. Saving may mean doing without some treats, such as vacations or expensive home appliances, so in order to make it worthwhile you will want to find the best savings rate possible. By using a high yield savings account, you can make the most of whatever funds you can put aside.

It is common for people to support this concept, that there is nothing wrong with spending on stuff that they don’t even use because they are simply doing what they want and that they’ve worked hard to deserve it. But when their financial struggles begin to put a strain on their lives, they always question their initial actions. In an attempt to justify their spending, they sell themselves to their pleasures; convince themselves that it was well deserved. This belief gets them into debt, and they become slaves of their own desires.

While it’s important that you can be the person you want to be and be able to do the things that you enjoy in life, you need to take the time to figure out what genuinely makes you happy; the things that you truly enjoy doing. Is it the material things that you purchase that make you happy? Or is it the sense of accomplishment that comes with every buy?

It’s alright to do what you want to do and spend on things that you need and want, but if it goes to the point of plunging into debt because of spending on things you don’t even use, it’s another story. You need to challenge yourself and try things that can still allow you to do the things you want to do without going broke. Here are a few tips:

Pay your dues before you shop

The moment you receive your funds, divide it immediately to pay all your financial obligations first. Whatever is left of the money will go to your shopping budget. This will avoid circumstances wherein most of your money is already spent, and you still have bills to pay. Stretching a budget for shopping is easier than producing the money that you lack for your financial dues.

Know what you want and what you already have

Take some time to create a list of the things you seriously want and the reason for it; it’s an integral part of breaking the habit of compulsive shopping. Go over the list and look at the things which you may already have, or something similar to it. If you already have six watches, do you actually need one more? If you already have a working mobile phone, do you really need to buy a new one? Will it make your life much easier? cooler? better? By the time you are done checking your list, you may be discouraged to go shopping for more things you do not need.

Delay your desires

If you want to buy something, ask the store personnel, if you can have the item reserved for a day. It will give you enough time to think the purchase through, because sometimes when you see something that is presented so well, you think that you want it when you actually don’t. By holding out on the item or just leaving it until the following day, you might decide it isn’t something you really want after all. If you think that you can always return it, the fact is, most people who spend sporadically almost always fail to return anything they purchase.

Avoid shopping when emotionally disturbed

People buy on their emotions; it is a common knowledge to all marketers and they use it to their advantage in every way they can. When you are sad or bored, you tend to compensate the feeling of joy or excitement by buying something. It resonates the feeling of bringing something new into your life in hopes of bringing along some changes for the better. It makes you feel like you have power and control over your life, when in reality, you are coping. Instead, divert your attention into something more positive and self-indulgent such as taking meditating, reading a good book, watching a feel-good-movie, or talking to a friend. Learn and try new things that can be beneficial to you.

Choose who you shop with

If you go with someone who has a problem with spending, you are more likely to develop the same careless spending habits. Shopping with someone who is frugal will encourage you to follow the same.

Filter your shopping coupons

When you are clipping shopping coupons, make sure to only keep those which have items that you regularly use. Having too many coupons will only tempt you into buying more things you don’t actually need because of a certain degree of pressure to use all coupons. It’s a false sense of frugality because it makes you feel like you are saving, when in truth, you are indirectly forced to buy things that you don’t need or want.

Use cash whenever you can

Bring cash as much as possible rather than your credit card when you shop so you are limited by the amount of what you are carrying. If you have a need for credit cards, make sure that you have the lowest maximum limit.

Stop browsing and start buying!

It is important to always have a list of the things that you need to buy. Once inside the stores, avoid browsing around or window shopping for things that you think you might need. Stay focused on your list because they are the only things you need. Don’t get side-tracked into the beauty supplies section if you only have a list of food items. Keep your eye on the target, that is, the items you actually came for, and leave.

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Ally is part of the team that manages Home Loan Finder, a free home equity loan and home loan interest rates service in Australia. Before joining HLF, she was a Media Planner with McCann Worldgroup Philippines, Inc., with award-winning executions, including the Levi’s 501 “Live Unbuttoned” global campaign.

1. Going out to the mall because you’re bored- It may not be the mall, it can even be your favorite online stores, but many Americans, in an effort to look for a distraction, get around to just spending and spending. The mall seems to be a worthy distraction because its near, and its filled with many things that can tickle your fancy. The result is you come home with things you don’t need, and a hefty credit card bill to match. Break this habit by discovering other habits. When you feel bored, look for other things at home to distract you. Why not read a book, go out for a walk, or even catch up with a friend whom you haven’t talked to in a while? Your wallet will certainly thank you for it, and you’ll feel more fulfilled than just meaninglessly spending!

2. Grocery shopping without a list- This second offense is the one many mothers are guilty off. Going to do the groceries can already seem like a chore, so moms like to just go and be done with it. What’s worse is when kids come into the mix, they can just grab this and that and drop it into your shopping cart. This kind of shopping can add up expenses real fast, and you can end up with a humungous bill. Avoid this by always coming prepared. Shop with a list, and make this list with your kids, that way they can request for things they would like to pick up. When you stick to your budget, you won’t end up overspending, but you’ll still get the things that you need!

3. Getting credit card after credit card- These days, credit card offers can come in left and right, and it can become so easy to grab them, ending up with a seemingly big budget to go shopping with. However, be warned, credit card debt is no joke, and can take years to get out of! The ideal number of credit cards to keep, and even at that, one can overspend. To curb out of control credit card spending, keep your credit cards away and only whip them out in the event of an emergency!

It may be hard to break these evil habits at first, maybe because they are just our go to actions, and whenever we aren’t quite sure what to do, we turn to them. However, people in debt need to realize this. We got into this mess in the first place because of mindless spending. We are in our present trouble because we perform these bad habits without thought, rhyme our reason. They’ve become such natural reactions for many of us that we don’t even know that they’re wrong, and are causing us to get into more debt.

So whatever it takes, please stop. Take up other habits and hobbies. Distract yourself, but not with more spending please, you know that won’t do you any good now. Instead, be honest in admitting your debt. Also, take stock of what you already have that money can’t buy. You have friends, family and loved ones and those you can’t get with cash or a credit card. Cherish them instead of material things, and spend time with them. Replacing material things with the things that really matter in life is an excellent way to gain perspective and focus less on acquisition. We know you have it in you to get out of debt! Get started today! Good luck!

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Sam Briones writes for SafeAuto, covering an array of topics from finding cheap auto insurance to safety tips.

1. Dues and fees – Various types of fees are due throughout the year and they are often overlooked. This includes annual credit card fees, gym memberships, professional associations, magazine subscriptions, newspapers, and even homeowner’s association dues. Since this are usually only due once or twice a year, it is easy to forget when they will hit.

2. Taxes on unexpected or extra income – The interest earned in a savings account or a CD is taxable. This and other types of taxable income are often forgotten until taxes are due at the beginning of the year. Winnings from gambling, rewards from points programs or credit cards and income from freelancing are all taxable. Making quarterly payments can help to avoid penalties and help with planning.

3. School expenses – Children who are in school have many expenses that are often missed. There are fundraisers, field trips, uniforms, extra supplies, pictures, yearbooks and parties. Everyday spending for things like meals or snacks can add up as well.

4. Summer activities – Don’t forget about the times that children are not in school. Day trips, camp and other family activities can put a drain on the bank account.

5. Gifts – Birthdays, anniversaries, showers, weddings, and babies all happen throughout the year. It is best to make a list of these events so an adequate amount of money can be put aside for gifts, cards, postage and celebrations.

6. Junk food – Dining out and stopping for fast food often happens spontaneously. Monitoring habits can help to plan for an average amount of spending that can then be budgeted.

7. Office accessories – Postage stamps, printer ink, paper, stationary, and software can be costly and don’t usually have their own place in the budget. Purchasing apps or accessories for devices can get expensive and should be accounted for to keep spending in line.

8. Landscaping – With home ownership comes added responsibilities. Landscaping expenses such as maintenance of mowers or a lawn service, flowers, fertiliser, grass seed and additional water usage can be a hefty amount of money. In the winter, snow melt and shovelling should also be accounted for.

9. Household supplies – Cleaning supplies and things like paper towels and toilet paper are often lumped into the grocery budget. However, these are not food items and should be thought about separately to best control how much is spent on these supplies.

10. Car maintenance – Having a car means more than a car payment, gas and insurance. Regular oil changes, registration, inspections, tolls and car washes are all part of car ownership.

11. Pet expenses – Being a responsible pet parent also has its costs. Trips to the vet, food, flea, tick and heartworm medicine, vaccinations and grooming are all regular needs of pets.

12. Personal care – Trips to the salon, tips and spa treatments are hard enough to find time for; finding money for them should not be an issue too.

13. Non prescription medicines – Many people use eye drops, vitamins, cold medicines, and antacids regularly but don’t account for them as regular expenses. Personal care items such as toothpaste, floss, shampoo and first aid should be included in the category as well.

14. Annual exams and other doctor visits – Trips to the doctor and dentist happen at least once a year and sometimes have prescriptions associated with each visit. Other exams such as vision, gynaecological, and specialists should be budgeted as well.

15. Emergencies – Problems with health, pets, homes or cars can arise at any time. Being financially prepared can help ease the stress of an emergency. Generally, it is best to have 5% of your salary put aside in case of an emergency. This will avoid causing debt by using a credit card or a loan to pay for an emergency situation.

Keeping track of spending and creating an accurate budget can help keep finances and savings on track. These fifteen items are often overlooked, but including them in a budget can help avoid financial issues and a shortage of cash.

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This post was contributed by Matt, a freelance researcher who works for an online credit card comparison service based near Sydney that aims to help Australians compare cashback credit cards that actually pay you money back as you spend.

1. Record keeping is mandatory. When you’re using a debit card you have to note each transaction so you’re not in danger of over drafting from your account. You need to know what your balance is at all times. If you over draw from your account you’re going to accumulate banking fees which can sometimes be as much as $100 for each transaction you conduct after you’ve gone in the negative. You also run the risk of severe embarrassment if you’re rejected from a store with a long line of customers behind you.
2. Convenience is not always guaranteed. If you happen to be at a place that doesn’t take a debit card, then you’re up the creek. Your kid wants to grab a treat from the ice cream man? You can’t give them your debit card. It only seems like every store or restaurant takes a debit card. You’re bound to come across a place that won’t take your card at least once or twice a month.
3. Hidden fees are everywhere. If you’re not using an ATM affiliated with your bank then you’re going to have to pay a fee. On top of that, many banks then charge a foreign ATM fee. These fees can get as high as ten dollars a pop. Always read the fine print before you take cash out with your ATM debit card.
4. Internet scams are commonplace. If you use your debit card to purchase goods online then you have to be careful. Your information can get lost in cyberspace and fall into the wrong hands.
5. Is your card lost or stolen? This is the worst feeling in the world. You want to believe that nobody would ever do anything wrong with your information, but your card can fall into the wrong person’s hands. If you make a delivery order with someone over the telephone, they now have your card number, expiration date and security code.

If you’re going to use a debit card, be sure you’re using the right one. I recommend the PerkStreet Financial MasterCard Debit Card. It provides up to 2% cash back on debit card purchases with no caps (one of the best debit card rewards programs in America), free online banking and bill pay, no annual fee and no monthly fees when you use your account.

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Heather Johnson is a regular commentator on the subject of credit card types. She welcomes your feedback and potential job inquiries at heatherjohnson2323 at gmail dot com

It’s a simple rule, and most would consider it common sense. But, the U.S. has a negative savings rate, meaning this common sense rule may not be so common place. I recently saw a statistic that claimed that about 43% of American families spend more than they earn each year.

It’s helpful to understand why people over spend, and be aware of any that might apply to you.

10.Keeping up with the Jones’ – Psychology plays a big role in our spending habits. We want to feel as successful or more successful than those around us. We spend a lot of money to keep up that image. The reality is, the neighbors probably can’t afford that new boat either.

9. Avoiding the truth – It’s easy to overspend when you don’t keep tabs on how much you have. People will go for years unaware of their true financial situation because they’re afraid to look at what kind of mess they are in. It’s easier (temporarily) to just avoid it. They’ll pay their minimums and add new credit cards as necessary ignoring the growing debt total.

8. Counting the chickens before they hatch – In National Lampoon’s Christmas Vacation, Clark Griswold made a large down-payment on his swimming pool expecting that his upcoming Christmas bonus would cover it. Instead, he was enrolled in a Jelly of the Month club. We are often similarly optimistic about incoming money. It’s spent before it’s received, and it’s often not as much as was expected nor received when expected.

7. Plastic doesn’t feel like real money – It’s common to spend more when using credit cards than cash. The experience of hading over a card that you get back is just not the same as handing over some cold hard cash and seeing it disappear.

6. Immediate gratification – It’s all around us. We’re bombarded with the immediate gratification mentality. “Instant pain relief”, “fast food”, “on demand video”, and the big financial one, “buy now, pay later”. We’re too used to getting what we want now even if we don’t know how we’ll pay later.

5. Lifestyle maintenance – Most people increase their expenses as quickly as they increase their income. The same cannot be said for decreases in income. Once we become accustomed to a certain lifestyle, it’s pretty difficult to cut back, even if our financial situation changes for the worse.

4. Poor as a child – Whether they’re trying to make up for their deprivation as a child, a fear of money being taken away that isn’t spent immediately, or a lack of financial understanding, being poor as a child is an often used excuse of overspending adults.

3. Sense of power – Spending money actually makes some people feel powerful. The more they spend, the more powerful they feel, and the only way to get that rush is to spend more money.

2. Prove self worth – Buying that fancy new car proves you are somebody, right? For some people spending makes them feel like they are worth something to the world.

1. Can’t say no – Some people feel like a failure when they can’t meet the wants of others. Whether it’s new toys for the kids, new outfit for the spouse, or a night out with the friends, some people just can’t say no, even when they can’t afford to say yes.

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The pursuit of material success often is the root cause of burnout at midlife. In fact, a recent study at the University of California at Berkeley found that people primarily motivated by the love of their work grow dissatisfied as they begin to make more money.

The first step to breaking free from the materialism trap is to understand the difference between “need” and “want.”

Our needs are relatively few, even from birth. We don’t need a lot of stuff, toys, gadgets, etc. We need shelter from the elements, clothing, food, love and understanding. We need friends and family around us.

We do not need 500 cable TV channels, brand new luxury cars, 5,000-square-foot homes in exclusive neighborhoods, lavish ski vacations, and smart phones that do everything but think for us.

There is nothing wrong with wanting these things. But understand that these things do not make us happy, in and of themselves. And, they are often links in the chains that bind us to jobs we despise.

Studies have shown that the more advertising a person is exposed to, the more they buy and consume. What does this mean to you? The more television you watch, the more magazines you subscribe to or read, the more money you want to spend on things you don’t really need. Marketers are taught that success comes from selling to wants not needs.

One way to notice your wants versus needs is to go through your household, garage and attic and locate all those objects that you really needed to have, and which you bought, but lost interest in a few days later and they have been collecting dust since then.

I don’t suggest being too hard on yourself, because if you forbid yourself of every pleasure, your brain may rebel and send you into a buying binge. Instead, start with a simple observation. Every time you are about to buy something, ask yourself whether you really need it and observe the response. One day this observation will result in your changing your mind and not buying the thing that you don’t need. Then it’ll happen again, and after some time you will be very comfortable at saying ‘No’, because you will feel good about making a better choice.

The amazing thing is that once you learn to live on less, it becomes a habit. The peace of mind that comes from relying less on materialism to define success usually leads to a greater and deeper happiness.