by: Catie Fitzgerald

For many people, the holidays present a monumental challenge for sound financial decisions. We want to give our friends and family generous gifts so they know our love for them. This admirable desire leads to our overspending, forcing us to face the new-year burdened by additional financial stress. Financially Savvy has a few suggestions to help you start the New Year without the holiday debt.

Recapture the True Spirit of the Holiday Take a journey back to your childhood and your memories of the holiday season. What made it so special? Not the gifts; the magic of anticipation made this time of year so happy and exciting. What can you do rather than buy to help your loved ones recapture their childhood experiences of this season? For some, the smell of sugar cookies will invoke the fondest memories. For others, their favorite holiday song can bring a smile to their face. Rather than spend a fortune on a gift, call your best friend's mom to find out what cookies to bake or songs to include on the CD or cassette you create for your buddy.

Set a Dollar Limit Anyone can spend $150 on a gift that thrills a loved one. Try spending $25 to get the same effect. You have to get really creative and focus on what makes the recipient tick. For many years my father claimed he enjoyed most the gifts that I made or that didn't cost much but showed I really understood what makes him happy. Parents are supposed to say these things so I never put much credence in his words. I always swore that when I have money of my own, I'd spoil my family. Then I gave one of my friends an inexpensive money clip I found that would allow him to get through airport security without emptying his pockets. He gushed gratitude. I spent all of $10! Set a reasonable dollar amount per person ($25 has served me well but only you know what you can afford) and get creative.

Make a List and Check it Twice Most of us include on our gift giving list people who would feel embarrassed by our generosity because they didn't include us on their list. Review your list with an eye towards identifying those individuals that would appreciate a card. Then write a really special message beyond the "Happy Holidays". Think about the person, what they mean to you, and all that they contribute to your happiness. Looking for ideas on what to say? - check out "The Art of the Letter" by Alexandra Stoddard. People who fall into this category of sentiment include your boss, fellow colleagues, neighbors (acquaintances, not friends you spend much of your time with on a regular basis).

Shop Early and Often You can't implement this tip for this holiday season but keep it in mind for next year. In January, I usually pick a theme that drives my gift giving for the winter season. Inspiration comes from a variety of sources. Some themes I've done in the past include clean spirit/clean mind, and travel. Equipped with the theme and a list of gift recipients, I keep an eye out for sale items throughout the year that would appeal to my loved ones. By July/August, I usually have the bulk of my shopping completed and just have little finishing touches to add.

For instance, Last year I chose the theme correspondence and communication. Over the year, I purchased note cards, special pens, and such to create correspondence kits for my sisters and girlfriends. I put all the goodies (including postage stamps) in plastic envelopes from the local office supply store so they have one place to go when they need to write a "thank you" or other letter. I clipped from a magazine some guidelines and suggestions about writing "thank you" notes. In all, I've spent $25-$30 per person and have very individualized gifts that reflect the recipient's personality and/or interests.

Use a Check Register for Your Credit Card Once you set your per-person dollar limit, you can calculate your total holiday shopping budget. Put that amount in a blank check register as your starting balance. Then, every time you make a purchase enter the details in your register just like you would a check. When you subtract your purchase from the available "balance", you reduce the amount available for future gift purchases. Seeing how much you have available to spend will do wonders for preventing you from going crazy and overspending. When the "available balance" hits zero, you have to stop shopping! Pay off the full balance when you receive your next credit card bill.

Most importantly, remember that most of the people on your list (even the children) just want to spend quality time with you. Somehow, this season became very commercial and focused on the value instead of the sentiment. Together we can change this perception. Let's bring quality, not quantity; back into the lives of those we cherish the most.

Catie Fitzgerald is a 10+ years veteran of the money management profession and the founder of Financially Savvy. Financially Savvy provides investors with the education and resources necessary to gain confidence in making their own financial decisions. We offer a variety of educational venues including classroom sessions, one-on-one coaching, and online resources.