Christmas in July

Nothing says holiday cheer like high interest credit card debt. Put the plastic away and pay cash! Christmas and the holidays happen the same time every year. They are not emergencies. Do NOT use your emergency fund, retirement savings, or debt for holiday expenses!

According to the American Research Group, Americans were likely to spend $929 on holiday gifts in 2016. That number is expected to go up this year. A survey conducted by the Sun Trust Bank Holiday Financial Confidence group says that 43% of Americans feel pressure to spend more on Christmas.

Don’t be overcome by marketing messages. Let's start planning now to get you on the right track before it's too late.

1. Budget. If you haven’t done your first budget or monthly cash flow plan, there's no better time than now. A budget will help you determine what you can afford to set aside each month and spend when the holidays arrive. If you stick to the cash flow plan, it will prevent you from going into debt.

2. Make a list and check it twice. Prioritize a list of everyone you want to give a gift to from most important to least. Determine how much you will spend on each person. When the money runs out, it runs out! Don’t forget about donations or buying gifts for those less fortunate.

3. Account for other expenses. There are other expenses during the holidays besides presents—travel, food, decorations, etc. Have a plan and budget in place so these expenses don't catch you off guard.

4. If you're failing to plan, you're planning to fail. Plan early so you can keep an eye on the items you want to buy and get them at the best prices. Better yet, if you've been budgeting all along, you can buy your presents now and bypass the holiday shopping craziness. You can do this by setting aside money every month.

$1,000 / 12 months = $84 a month. That's a lot more manageable, right?

When it's all said and done though, remember that the holidays aren’t all about the gifts. It's not worth going further into debt over. Start planning now and you'll be sipping eggnog by the fire while everyone else is running around at the last minute.