By                    Gabrielle Olya

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Set Aside Spending Money First

“While your needed expenses take precedence, set aside some money for your holiday shopping list so you’ll be prepared ahead of time,” Yang said. “The easiest way to do this is by setting up automatic withdrawals every time you get paid, so you’re already accounting for it in your budget.”

When it comes time to holiday shop, set a spending limit based on how much money you have set aside, and stick to this amount to prevent racking up debt.

Track Your Spending

“If you are trying to stick to a budget, it’s important to track your spending,” Yang said. “During the holidays, there are a lot of expenses, and they add up quickly. Find a tool that helps you set your budget and stick to it. By keeping track of your spending, you’ll be more in touch with how you’re doing.”

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Pay in Cash

One way to ensure you don’t spend more than you have is to pay with cash or debit.

“I used to put everything on a credit card even if I didn’t have enough money to pay for it,” Yang said. “I’d rack up credit card bills and the interest would hurt.”

Cash In on Rewards Points

While paying in cash will help you stay on budget, there are certain times when it pays to use your credit card. Now is the time to cash in on credit card rewards you earned throughout the year.

“When I was in my 20s, I didn’t take advantage of this enough,” said Yang, who is a spokesperson for Amex Rewards Checking. “This is an easy way to pay off your gift expenses. According to Amex Trendex, 60% of respondents plan to use their reward points for statement credits to offset holiday expenses, which you can do with products like Amex Rewards Checking.”

Make a Recovery Plan

Even if you set a budget and plan ahead, it’s still possible that you will overspend this season.

“If you overspend during the holidays, I recommend creating a plan at the top of the year with attainable steps,” Yang said. “A new year is the perfect time to re-evaluate your finances. Make sure you’re maximizing your accounts and not paying unnecessary fees.”

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