Liz Koh: Don't let Christmas break the bank

Shop smarter this Christmas.

Start by making a Christmas budget, with a list of names of people to buy for and how much you want to spend." It is so easy for spending to get out of control at Christmas time. If you want to avoid having to take most of next year to pay your Christmas debt, here are the best tips for Christmas shopping.

Start by making a Christmas budget, with a list of names of people to buy for and how much you want to spend. To keep track of how much you spend on each person, use cash and divide it into envelopes with the name of the person on the front.

Use reward points you have accumulated through the year to buy gifts.

Shop online so you can take your time and hunt out the best deals. Sign up to email newsletters and Facebook pages of your favourite retailers because often they have special discounts for people on their lists.

Avoid panic buying by doing your shopping well before Christmas. Go to the shops when it's quiet, such as first thing in the morning or late at night so you can be the first to get bargains and take your time to decide what to buy.

Get more bang for your buck by giving small stocking filler presents and money or vouchers to use at the Christmas and New Year sales.

Buy family or group gifts such as hampers, vouchers for activities, and games that can be shared or for big groups, have a secret Santa party.

Look after yourself as the first priority. Make sure you pay all your bills and take care of your own needs before you give to others. However, don't be tempted to buy unnecessary things for yourself when buying gifts.

Taking advantage of January sales to buy essentials and stocking fillers for next year at bargain prices.

Have a happy debt-free Christmas!

Liz Koh is an authorised financial adviser.

The advice given here is general and does not constitute specific advice to any person. A disclosure statement can be obtained free by calling 0800 273 847. For free e-books see moneymax.co.nz and moneymaxcoach.com