Why you should have a spending limit for Christmas

This article can also be found here.

As we grow older and more mature, most of us take the most joy during the Christmas season in giving great gifts. It is a great feeling to be able to give a gift that is needed and appreciated, and will be loved by the recipient. There is no better feeling around this time of year than in seeing that big smile on someone's face after they open a great gift.

On one hand, this is a good thing and a good attitude to have. We grow up looking forward to receiving gifts, and we grow out of that unselfishness and see the joy in giving to others. Sometimes, however, this can be a bad thing. This can be harmful if we go too far in getting people great gifts, because it can cause us to spend more money than we can really afford. If you are going deep into debt and having trouble paying your bills because of your Christmas shopping, you are taking things a bit too far.

That's why it is important to have a budget around the Christmas season, so that you can have a spending limit for the gifts that you buy. That way, you can keep better track of how much you're spending, and how much you're able to reasonably afford to spend. It's great to get excellent gifts for people you care about, but it's even better to get them when you know you can afford them. Plus, this way you don't have to worry about how much you're spending... if you have a spending limit set up, you will know that you are OK as long as you spend less than that amount.

I am sure that the people who are receiving the gifts are happy with this too. After all, would you want to get a great gift, only to later find out that the person is in a bad shape financially because of it? I would think that most people would be happy to receive a lesser gift if they knew it wouldn't hamper you financially. That way both the giver and receiver of the gift can be happy.

Christmas is a great time of year, but it can also be dangerous financially if you are not careful or if you do not properly plan for it. Because everyone wants to find that perfect, special gift, they have the tendency to spend more than they can afford on it. They break the bank, and wind up hurting for it after the Christmas season is over once they get their bills and bank statement. So be responsible and set a spending limit in your Christmas spending. You will thank yourself for it later.