Holiday budgeting: Some ways to keep your holiday spending under control

The holidays are approaching, which means it's time to plan parties, shop for gifts and deck the halls.

It's a fun time of year, but it's also expensive! Financial advisers say it's essential to set a holiday budget and stick to it, before you find yourself with an empty wallet and buyer's remorse.

Cheryl Mothes, a financial adviser with Edward Jones in Jackson, says it's the gifts that trip most people up when it comes to their finances.

"Some get caught up in the 'joy of giving' to the point that they suffer the financial consequences of going beyond their means to fund the gifts," she says. "I've worked with clients who are in groups, whether it's family, friends or work-related groups, who have traditionally purchased gifts for everyone, and it puts a huge strain on them financially. Truth be told, many of the individuals in those groups probably wish someone would speak up and change the tradition to something more affordable."

Jayne Schrader, a financial associate with Thrivent Financial for Lutherans in Jackson, recommends writing down what you plan to spend on all gifts, food, events, decor, clothing and other holiday expenses.

"That way you're not caught unaware and the expenses become more real to you," she says.

Most of us don't realize how much we spend during the holidays -- it's easy to go overboard on emotional purchases and then blow your budget, says Schrader. Instead, keep track of your spending in a notebook or on your smartphone so you know how much money is left in your budget. You can readjust your spending as necessary, but do not stray far from your budget or spend more than you are able. Also, be sure to save all your receipts in case you find the same item for a lower price at another store or later in the season.

"If you plan far enough in advance, you can save on all your purchases by watching for specials, sales and coupons," she adds.

Schrader also recommends keeping an open mind on holiday gifts and decorations.

"Keep an eye out for possible gifts to give when you see a good deal," she says. Dollar stores have tons of neat toys and doodads for kids; also look for gifts at antique stores or websites like eBay or Groupon. If you're crafty, scour Pinterest for cute gifts, recipes and decorations you can make yourself. Remember that you don't have to spend a lot -- homemade gifts mean a lot to people, says Schrader. In fact, one of her favorite gifts is to make photo albums for her family members.

"If you feel spending has gotten out of control, have a frank discussion with your family to reduce expectations," says Mothes. "It can also be a gradual thing -- reduce your spending by 25 percent every year for three years, for example."

Like Schrader, Mothes is a fan of low-cost alternative gifts and homemade items at Christmastime: "Many recipients appreciate not receiving more 'things' that they may not need," she says.

And remember, it's never too early to start planning for next year's holiday season. Joining a "Christmas club" at a bank will help you set aside money each month, or you can set up your own savings or checking account just for the holidays -- just promise yourself not to touch it until the end of the year.

"Setting up an 'escrow' type of an account allows you to have funds automatically withdrawn from your checking or savings accounts, or payroll," notes Mothes. "If you start it in January, and spend only the amount that is in the account in December, you will effectively stay within your budget."