Be penny-wise in the New Year

Tired of starting the New Year with a pile of debt?

Shop smart, and you can enjoy the holidays without putting yourself in the poorhouse.

Here are a few tips to help you make the most of your time and money:

1. Decide how much you can spend
   One big mistake? People overlook the little extras when they draft a budget. Include everything from postage for Christmas cards to holiday party favours and home decorations to the cost of boarding a pet if you’re travelling.

   2. Make a list and check it twice
   Armed with your budget, make a list of all the people you want to buy for. Then go over the list and decide how much you can spend on each. Don’t have enough money to cover your holiday budget? Go through it again and cut names or amounts.

   3. Pay cash.
   “If you know that you’ve had trouble in (years) past, do a cash-only Christmas,” says Clark Howard, co-author of the book “Get Clark Smart: The Ultimate Guide for the Savvy Consumer” and host of a nationally syndicated consumer call-in show. His holiday advice: Set a limit, take that money out of your credit union or bank, “and when that (money’s) gone, it’s over.”

   4. Think of credit cards as short-term loans.
   
   Ideally, you’ll want to pay everything off immediately. Have a choice of cards? Always use the card that offers the lowest interest rate. A good idea is to track your credit card spending just as you would if you were writing a check. Remember: It’s really easy in the flurry of the holiday spending to run around and not keep track.

   5. Put yourself on your shopping list.
   It sounds selfish, but it’s really smart. “There are things you would not have bought for yourself that you end up, on impulse, buying (for someone else),” says Howard. The best antidote is to give yourself a little splurge, too.

   6. Allow enough time for all your holiday preparations.
   Who hasn’t run out for a gift at the last minute and ended up paying top dollar? But whether you’re shopping, baking or wrapping presents to send cross-country, budgeting your time can end up saving you tons of money.