Here are some tips to enjoy the holidays without breaking the bank

Ready or not, the holiday season is upon us and you know what that means. Christmas shopping! Black Friday! Unfortunately, with the joy of the holidays comes the stress of overspending. Every year, many consumers overspend during the holidays, starting off the New Year in debt. But not to worry! You can make this year debt free by creating a holiday budget and sticking to it.

The National Retail Federation is finding that most consumers will still be generous on their holiday spending this year, with retail sales expected to increase close to 4 percent for a total near $680 billion. That figure is up from $655 billion in 2016.

Whether you plan to spend more or less than the average, the key is to set a budget and stick to it. And while it is not the most festive way to spend an evening, it is important to sit down and crunch the numbers, because building a budget and sticking to it over the holidays will keep away a painful financial holiday hangover.

BBB recommends the following steps to help with holiday spending this year:

Step One: Consider your income. The first step is to measure how much money is coming in. Add up your monthly salary along with your spouse, dividends or interest payments and other sources of income.

Step Two: Add up regular monthly expenses. Adding up expenses is usually harder than determining your income because there are so many more factors to consider. Start with your rent or mortgage, utilities and credit card payments. Also factor in other expenses for gas and car maintenance, healthcare and groceries.

Step Three: Estimate extra holiday expenses. A lot of little purchases have a way of adding up over the holidays and it is important to consider all of the expenses for the season including:

▪  Gifts — Make an itemized list of everyone you want to buy presents for and estimate how much you are willing to spend for each. This includes presents for family, friends and coworkers. Also consider the cost for holiday cards and postage.

▪  Entertaining — Entertaining is big over the holidays. Think about who you will be having over and also budget for any food or beverages you might need to bring to someone else’s party. Also consider the costs for eating out and going to the movies, which are popular expenses over the holidays.

▪  Decorations — Take stock of what you already own and then consider any additional spending you might need to make for a tree, lights, ornaments, wrapping paper, etc.

▪  Travel — If you are heading out of town for the holidays, consider the cost of travel including any car maintenance or pet boarding if applicable.

▪  Charitable donations — The holidays are a time of giving, so budget in how much you plan on donating to a worthy cause. You can learn more about being a savvy donor from the BBB wise giving alliance at www.bbb.org/charity.

Step Four: Revisit, evaluate and revise your budget along the way.

Once you have added up your income and expenses, it is time to compare. If more is going out than coming in, it is time to go back over your budget and pare down expenses. Consider giving fewer gifts or less expensive ways of entertaining. Last year’s decorations also are probably just fine.

Once you have balanced your budget, revisit it frequently over the holidays to make sure you are sticking to it. You might find you over estimated in some categories and underestimated in others.

Whether you plan to shop at a store or online, it is good practice to have a game plan or, even better, a list of what you want to buy, so as to avoid impulse buys which can add up. Decide what items you will buy online and which items you will purchase at local retailers. Go to http://www.bbb.org to check out their BBB business reviews before you shop.

Many retailers are offering holiday deals, but it’s always a good idea to comparison shop. Online prices may be better, but don’t forget to factor in shipping costs. Also, keep layaway in mind as on option, as many stores are offering it. Be sure to read all the fine print though, and ask questions to be comfortable knowing what contract you are getting into.

Make your holidays merry and bright with a plan, a budget and the resolve to stick to it. Come January, you can start 2018 with a clean slate instead of a stack of bills. Also consider starting your Christmas shopping early so you can take advantage of all 358 shopping days in 2018.

This story was originally published November 20, 2017 at 1:19 PM with the headline "Here are some tips to enjoy the holidays without breaking the bank."