Every time I turn on the news it seems like I am hearing something about being in debt, getting in debt, or getting out of debt.  So this Christmas Lets figure out some ways to keep and stay out of debt during this Christmas season.

Hide the credit cards - If you don’t use your credit cards you are already way ahead of the game. You don’t have to worry about interest, and all those payment that come with credit cards.  If you don’t have the money now what makes you think you will have it on the first of the month, when the bill comes due.

Make a list – I am the biggest list Planning Diva you will ever meet.  I make list for my Sit down and make a list of all the people you would like to give gifts. Once the list is made, stick to it. Decide how much to spend on each person and write it beside each name. Then when you go shopping there will be a price range for each gift. It will help avoid overspending. Even a dollar over expected spending can add up if there is a large shopping list.

Draw names – Many families help cut back on holiday spending by drawing names. Each person in the family only shops for one other person whose name they have drawn. Instead of buying several gifts, even if they are inexpensive, each person can get one nicer gift. This makes shopping easier too. Instead of trying to fill a huge list, just take your time and focus on getting that “perfect” gift for just one person.

Shop ahead – Get organized and have good hiding places. By doing this you can purchase Christmas gifts all year round, taking advantage of after Christmas sales, out of season and clearance sales. Go ahead and wrap and label the gifts. This helps keep people from seeing what was purchased and you won’t forget which gift was for whom.

Lay-away – Some stores offer a lay-away program, so you can pay a little at a time each month. By doing this, you can budget things out over a period of time. By combining this with the list and budget plan, you can cut out the interest incurred using credit cards and still make a monthly payment.

Gift cards – While gift cards are convenient for gift giving, many people feel they are impersonal. Gift cards can also help you shop on a budget, if shopping ahead of time. Purchase the gift cards in the amount you can afford each week or month. Tuck them away in an envelope in a safe place until you have the amount needed to purchase the gifts. You can keep an eye out for sales on certain items this way, as well. Be sure to check to see if the cards have an expiration date. Some expire after a certain time once activated and others have no expiration date at all. Some are even “rechargeable” and more money can be added as needed.

No matter what plan you choose, the best thing is to get organized and plan ahead. Spur of the moment shopping is the worst for anyone’s budget. It’s too easy to just grab something on impulse and blow the best of intentions.

Here is what Julie who is holding the give away over at Free Birthday Treats Blog has to say about the amazing product she is giving away.

I’m loving this product! Invented by fellow mom entrepreneur, Wendy Krepak, the Card Cubby organizes gift cards, coupons, reward cards, game cards (like Dave & Busters), business cards, frequent flyer or shopper cards and the list goes on. I never realized how many cards I carried around until I pulled them all out of my purse to put them in my Card Cubby. It’s no wonder I can never find anything in there! So this is what I was using before - just for my coupons:

The Card Cubby can even be used as a wallet. Just insert your photo id into the clear pocket and stash the cash and credit cards inside. There is even room for a cell phone, iPod or small digital camera. It’s compact size makes it so easy to carry around by itself or tuck it away inside your purse like I do. It measures 5? wide by 3? tall and holds approximately 80 cards.

Yes, my old coupon organizer was quite an eye sore and I was forever getting frustrated with it because the flap would continually flip back over making it tough to hunt through my coupons inside and the snap to close it broke off long ago. With the Card Cubby the flap is much longer and stays flipped open and the magnetic snap closure easily secures the contents inside.

Can you Believe it she is giving this Cubby Card away to two luck winners….. Want to enter the contest and read more.  Then check out Julies site Free Birthday Treats Blo.

1. Set your priorities.

Priorities are different from goals. They are aspects in your family’s life that you, as a family, want to set focus on, say health or children’s future. While goals are specific targets that support priorities.

In setting priorities, do not set too many as it defeats the purpose. Ideally, there should only be one, but because life is not ideal, 2 to 3 are reasonable.

As the priorities are set and agreed upon, write them down. Post the paper where everybody can see them to remind them of what your family is focused on for the next few years.

2. List down your goals.

Once the family has set and agreed on priorities, the next step is to set the goals. Goals are specific and measurable conditions that, when achieved, will support the priorities.

In setting goals, establish a target that is both challenging yet achievable. A 10-15% of the family’s income is a good savings target for a child’s future education: stretching yet reachable.

Try to limit your family into setting 1-2 goals per priority, to maintain focus.

3. Work towards your goals.

After setting your priorities and goals, start living by them. All of the family’s activities will be geared towards working at your goals. Track progress, particularly on financial goals, by using an income and expense-tracking tool. The simplest way is to get a notebook and list down all expenses and incomes and set a budget for future spending. There are those that invest in computer software or a family accountant. Whatever it is, the important thing is to have a system of monitoring the family’s performance towards achieving their goals.

4. Evaluate your family life.

At a certain point in time, when you feel like it’s time to evaluate your life, check how your family is doing against the goals. Goals that have been achieved can be checked off the list, and new ones can be formulated.

At times, in major changes, say a career move, or when a family member goes away, it may be time to re-evaluate priorities. When such a time comes, then the cycle begins, just like what it’s for: life!

To get your copy of How to Set Up a Family Budget and Sticking to It. Click Here.