Is it that time of year already? The decorations are lining the city streets, the mailbox is overflowing with Christmas catalogs and the kids have already started writing out their wish lists. It is an easy time of year to get carried away and blow the budget you’ve worked so hard to maintain throughout the year.

Here are some simple tips to survive the Christmas madness:

• Determine what level of spending is affordable for the Christmas period.

• Set yourself a budget specifically tailored for Christmas spending. Everything from the leg of ham to any planned holidays should be included. You will see whether your budget is affordable, or needs to be adjusted
to meet your available cash flow.

• Endeavour not to stretch yourself too far. It can be difficult not to get caught up, but the last thing you need is to begin 2010 way behind the eight ball.

• Beware of the credit card! Your best friend, but your worst enemy. Credit cards make you feel like you haven’t spent it, but believe me you have. Be sure to filter everything you spend on your credit card into your budget so as to monitor the balance ensuring no nasty surprises when the bill arrives.

• Shop online – In this day and age it is rare not to find the equivalent item online significantly cheaper than in the stores (my apologies if you are a retailer), particularly when shopping for items located in the US. This is due to the strong Australia dollar against the greenback. Begin with a google search and go from there.

• Be prepared and start looking now. Shopping online can be cheaper and convenient, but often takes longer for delivery. If online is not an option, it still pays to begin early to find the absolute best price for a particular item.

• Start preparing for Christmas 2010. It sounds crazy, but if you take what you spend this year and budget for it throughout next year, when next Christmas comes along you can sleep easy knowing you’ve got it covered.
Merry Christmas and a happy and safe New Year…