Budgeting can keep spending on track

If you’re on a budget — and who isn’t? — it’s hard not to overspend during the holidays.

Gifts can cost more than you expect, even when they’re on sale. Someone you know casually gives you a gift and you feel compelled to give one back. You attend several parties and need more host gifts than you expected.

Or you just plain spend too much because you get caught up in the gift-giving spirit.

Here are three tips that will help prevent budget deficits:

» Keep track of how much you spend.

“If you keep track of receipts, you won’t end up with pocketbook hangover,” said Jack Gillis, spokesman for the Consumer Federation of America, a Washington, D.C.-based organization that investigates consumer issues, behavior and attitudes. Knowing what you’ve spent will deter you from spending too much.

Because people tend to buy gifts over several weeks, it’s easy to lose track of the total, he said.

Gillis suggests putting all your holiday receipts in one envelope. Keep a running total of what you’ve spent and write it on the outside. » Pay cash. It’s easy to whip out a debit or credit card for purchases. Instead, Gillis suggests designating a certain amount of cash for holiday spending. Put all the cash in an envelope so that it has a special place.

Paying cash does have a drawback, Gillis said. Some retailers are reluctant to refund money if a purchase is returned, he said. They find it easier to credit a debit or credit card, he said.

» Make a budget and stick to it.

Determine how much you have to spend. Make a list of everyone you want to give gifts to. Then divvy up the budgeted amount among everyone on the list. Be sure to factor in sales tax and shipping costs, if applicable.

Keep the list with you. Refer to it when you shop. If you happen to spend a little more or less, readjust what remains for future purchases.