by Ann Marie Dwyer

Created on: September 24, 2007   Last Updated: December 21, 2010

Planning ahead is the key to avoiding financial holiday stress and the New Year's credit card hangover. If travel is in your holiday plan, conquer the shopping early. With three months left over, you will be able to leisurely plan a trip without going into debt or stressing the details.

Be done shopping by August. Perfectly doable with this strategy.

Do the math. Plan to spend 1% of your annual income on holiday spending. This money will not be spent totally on gifts. Decorations, cards, food, fuel expenses traveling to parties and incidentals will fall into this 1% as well.

On December 26, do not stand in line to return anything. If it does not fit, will it fit someone on your list? If it doesn't match, will it fit in one of your recipient's homes? If you don't like it, will someone on your list? "What list?" you ask.

Each year, impulse buying for last minute additions to recipient lists account for nearly 15% of all holiday spending. Eliminate this spending, by knowing ahead of time for whom you will purchase. Parents, children, grandchildren, partners and best friends make the list every year. If possible, pare the list to the bare minimum. Your boss' secretary's husband does not need a gift.

Group your recipients into these categories: Gift, food, craft and card. Cards, wrapping and craft supplies should be purchased at after holiday sales. Crafts should be completed by June, wrapped and put away. By wrapping the present and applying a tag with a name, you have officially crossed the name off of the list. Beside the name, you should place a the total cost of the gift, wrapping included.

Sign holiday cards while watching a Little League game or cheer leading practice. Sign only as many cards as you have names on your list for which you do not have an email address. Remaining cards should be boxed for another year. On average, cards need only be purchased three out of every four years.

November 28-30, make a personalized holiday newsletter on your computer to impart the year's accomplishments/joys and to send best wishes for the New Year. This should be added to the cards the first week of December and mailed. Save postage by sending your newsletter via email to as many recipients as possible. Make note on your list as to the postage paid on your list, along with the cost of the cards and stationery stock/ink to print your newsletters. Cross off those names.

Divide your gift recipients into seven groups. Shop for one group per month in sales, consignment

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