by Erik Van Tongerloo

Created on: October 08, 2009   Last Updated: November 28, 2009

Christmas is a wonderful time and the seduction of impulsive spending can be really high. Most everyone wants to cherish their close family members and friends with wonderful gifts. The holiday season is a time of many celebrations and it is often difficult to cut expenses during this time of year.

Here are some tips which may help you to avoid spending too much on Christmas gifts:

*Make a Christmas budget

It is best you start creating a Christmas budget in the beginning of the year. There are more expenses with Christmas than buying gifts for your dearest ones. You need money for decorations, Christmas meals, Christmas cards and probably also wrapping paper. It is a good idea to take your expenses of previous Christmas holiday season as the basis to start your Christmas budget.

It is maybe best to buy only Christmas gifts for your closest family members (for example, parents, children, and spouse), your best friends and some other significant ones. Write down the amount for everyone you want to surprise with a Christmas gift and compare your planned expenses don't exceed your budget. If necessary, you can always figure out where you can cut down expenses until you stay within your budget.

*Start saving for your Christmas gifts in the beginning of the year

You can best open an online savings account for your Christmas gifts. It is wise to set every month a certain amount aside for your Christmas expenses and save every month 1/12 of your planned expenses. During this time you will accumulate some interest which may help you to have a little bit more than planned.

*Don't wait until the last months to start shopping

Buying Christmas gifts is not something you will do in a hurry. If you wait until the last months you can miss some opportunities to buy gifts on cheaper prices. It is best you start early and maybe best after the holidays when many retailers offer discounts of 50% or more. You also best spread your expenses throughout the year. It is important you compare prices of different stores and online shopping may help you to get higher discounts. Retailers often increase prices when the holiday season is approaching.

*Don't buy always new

New toys, books, CDs, DVDs, and also following the new fashion of clothes are more expensive than you buy these gifts months later. For example, a new DVD will cost you more than $20.00 and if you wait a few months you can likely buy the same one with a discount of almost 50%. It is the same with toys; you don't need to

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