Avoiding the Holiday Spending Hangover...

Are the bills from last year's holidays still around to greet you as this year's festivities roll around? Or maybe you're just happy they were paid off over the summer. Do you remember promising yourself it wouldn't be that way this year?
Are the bills from last year's holidays still around to greet you as this year's festivities roll around? Or maybe you're just happy they were paid off over the summer. Do you remember promising yourself it wouldn't be that way this year?

Try making your New Year's resolutions in November and avoid the holiday spending blues in January. By having a firm spending plan for how -- and how much -- you'll spend for the season; your first greetings of 2003 are less likely to be from the credit card companies. And you might find the holidays are more relaxed, meaningful, and enjoyable as a result.

No single holiday spending plan is right for everyone. That decision is driven more by your values and customs, than your income. Start by thinking about what's important to you and your family at this time of year.

Looking back on holidays, time together is often the thing we cherish most. Yet we often let it trickle away rushing from store to store, trying to find the perfect gifts (which probably won't be remembered a year later), burdened by the knowledge that we'll be paying off this few short weeks for months to come.

So ask yourself how important the size of those gifts really is to you, your friends, and family. Your loved ones would never want to place you in financial jeopardy, but that's often what happens at this time of year. If you think you may be spending too much during the holidays, try this rule of thumb: If you spent more than one percent of your after-tax income on holiday gifts, you may be spending too much. For example, if your annual after-tax income is $36,000, your spending would be $360.

If that figure took you by surprise, here are a few resolutions to help you get your holiday spending in line:

Get real. The holidays are the season of unrealistic expectations. Don't expect them to do too much and mean too many things. And don't try to pack so much in that you're running from place to place, with no time to enjoy what is supposed to be a happy time. It's OK to turn down a few party invitations, delegate some tasks to other family members or spend a little less time shopping this year if it means you