Guess what? Christmas is in December this year. It comes at the same time every year…. If you’re one of those planner types who saved a little out of every paycheck since January, you’re in great shape. Congratulations! For the rest of us there’s still a little time. Sit down and figure out how much you can squeeze out of your regular budget to save between now and Christmas. There’s no magic formula for deciding how much to save; it just depends on your income and how much you typically spend.

Make a list of everyone you are buying a gift for and put a dollar amount by every name. Total it at the bottom. This is your Christmas budget. Pay cash – put the total from your budget in an envelope and when the cash is gone, stop spending. This will help keep you on budget because if you overspend on Aunt Sue, Uncle Harry won’t get a gift. Remember there are added expenses during the holidays. If you’re taking your famous green bean casserole to 15 Christmas potlucks, you’ll have a larger grocery bill – add to the budget. If for the past 10 years you have fallen off the ladder hanging lights on your house, budget for the emergency room visit. Sit down and think for a minute about the expenses you normally have during the season and plan for every one of them.

If you looked at your monthly budget and there is nothing left over for Christmas gifts, you are not a bad person. This is a season to get together with family and celebrate the birth of the Savior. Don’t spend money you don’t have and go further in debt. Stick to your budget and keep working on your money makeover. Down the road, when you have control of your money, you’ll be able to buy the gifts you want to give. Close your eyes and imagine what it would be like to enjoy the Christmas season without worrying about the January bills. What would it be like if Christmas didn’t follow you into the New Year? Pay cash and stick to your budget, and you can avoid the January bills blues.

Dave Ramsey is host of the nationally syndicated radio talk show, The Dave Ramsey Show, and best-selling author of Financial Peace, More Than Enough and The Total Money Makeover. You can visit him at daveramsey.com. Article Used by Permission.