With today being Christmas Eve, a lot of people are headed out to do their last minute Christmas shopping. This is all well and good (mostly for the retailers), but there are a few things to remember so you don’t “break the bank” as they say.

1. Don’t buy something just because it’s there. Far too many people scramble at the last minute to buy a gift for someone that they end up buying something they don’t really care to give and the person won’t care to get. If you don’t have a well thought out gift, or the store is out of stock of the item, don’t feel bad giving a gift card instead that the person can use to purchase the item later. And with a gift card you can at least limit what you’re going to spend.

2. Don’t buy another gift for someone you’ve already bought for. When you’re out shopping, stick to your remaining list and forgo the five dollar knick knack that’s “just perfect” for Susie. All these little things will add up and the recipient probably won’t care about the extra little gifts. You also don’t need to buy extra things just so people have more things to open.

3. Just stop shopping and go home. Besides this just saving money, don’t forget what the holiday season is all about, spending time with friends and family. If you’re too caught up in the shopping frenzy, you’ll miss the time that you could have spent at home. Any more shopping that you could do will probably have a marginal impact anyway. So just go home and have a Merry Christmas.

I heard an ad on the radio the other day wanting to help us (the consumer that is) out this holiday season. It said that we should leave our credit cards home and not run them up this year. Instead they were advertising their mortgage company and offering their refinance options to give you the cash you “need” this time of year.

I’m not exactly sure why someone would find this logical and think it’s a viable “solution” to their holiday cash flow problems, but I have to assume that some people are actually taken in by this or else companies would stop making advertisements like this. Whether you’re borrowing money from your credit card or borrowing money through a mortgage, it’s still borrowed money that puts you further in debt than you were before.

If you want to change your future financial outlook, you’re going to have to stop making the same mistakes. Stop buying things that you can’t truly afford. You need to stop trying to hold up your house of cards and maintain an image that everything’s OK. Who cares what others will think of you? There’s no need to impress others this holiday season with the extent of your credit limits.

Maybe it’s time to get back to what the holiday season is all about. Try refocusing on the people (family and friends) that make this time of year special instead of the gifts. And who knows, maybe you’ll end up enjoying the season more without a mountain of debt hanging over your shoulders.

If you’ve been a long time reader of Fiscal Musings, you know that I’m not big on eating out. There are a couple of reasons for this, but you can read the Restaurant Lifestyle for more information. Unfortunately, even if we would rather save the money, we have friends and family who don’t share the same opinion. Sometimes the only way to maintain a friendship is to go out.

So how do you find a compromise in these situations? I’m going to give a few ways to keep your restaurant tab down while still having a good time with family and friends.

1. If you’re married, or are in a relationship, try splitting a meal. Restaurants are usually very generous with their portion size, and most of us could stand to eat a little less. So cut your bill in half and share a meal.

2. Take a pass on the alcohol. These drinks can easily be the largest part of a bill. If you’re going out with friends who want to drink, order a soft drink instead. You’ll typically get free refills and you can still enjoy the conversation. I have also been given these drinks at no charge when everyone else is ordering alcohol, and nothing beats free.

3. If you don’t want to split a meal, or are single, don’t think that you have to eat everything on your plate. Feel free to take home leftovers. Even though you won’t save anything on your bill, it’ll save you the money you would have spent on another meal.

4. Finally, don’t just let your friends dictate where you’re going to go to eat. Take an active role and lobby for a place that you know won’t break the bank. People sometimes take forever to decide where to go, and that’s the perfect situation for you to suggest some place that you’re comfortable with.

Ultimately, it’s your money, and you can decide how to best spend it. Don’t just give in to the peer pressure when it concerns your personal finances. Too often we just go with the flow and figure we’ll take care of the finances later.

For as many different types of people, there are equally as many different ways to manage personal finances. They may be varied, but people somehow seem to make it work. And they should since they’re the only one that worries about their finances. Things don’t always go as smoothly however when a couple comes together and combines their finances.

Oftentimes one is a spender and the other is a saver. I don’t believe I need to explain how this could be a problem. One person may also love credit cards while the other abhors them. One may love to budget and keep track of everything while the other prefers a more carefree style. As you can see there are many issues that can arise between a couple when it comes to their money.

I’m not going to dive into all the specific issues that can arise due to the sheer number of them, but many of them can be solved through open and honest communication. Too often I hear about someone that only recently found out that their significant other has hidden debts. One may spend first and ask questions later. When situations like these come up, too many people just get frustrated and keep to themselves. Unfortunately, this can be one of the worst ways to deal with things.

We need to set aside some time to openly talk about our financial situations, and we also need to talk about more than just the numbers. We need to be honest about our financial habits and spending patterns. Only when we understand where each other is coming from can we work together to solve any issues and potential problems. Maybe it’s finally time that you talk together.

I must say that I’m amazed at how many people sit on the sidelines when it comes to personal finance. I talk to so many people who tell me how and what to do as far as their finances are concerned, yet for some reason they don’t do it. There are so many articles out there in the mainstream financial media as well as on financial blogs such as this one that it’s easier than ever to find good advice and how to put things in order. Interestingly to note however, is how many people read all this and are still struggling financially.

If you’re struggling with debt, there is plenty of information out there showing you how to get rid of it. You can also find countless tips on frugality. None of this will help you though if you don’t put any of it into practice. Reading posts and continuing to eat out frequently won’t improve your situation. Talking about the next greatest investment with a co-worker and then only paying the minimums on your credit cards also won’t help.

Perhaps you’re looking to retire soon, or maybe a little early. I’m sure you’ve read posts about various retirement accounts including Roth IRAs, 401Ks and the like. I’ve talked with countless people who can tell me just about anything you want to know about these accounts, but they still only “have plans” to open them at some point in the future. A common phrase I hear is they’ll do it “as soon as (such and such)…”

My advice to you is to stop standing on the sidelines of your financial future. Sure you have a chance to lose if you get in the game, but you have no chance of winning if you never play. There are many aspects to the game of personal finance, and you can’t begin knowing everything about each of them. You can’t afford to wait until you have all the information or know exactly what to do. There are some things that you just need to learn by doing. It’s alright to make a mistake.

So continue to read financial articles (especially from this blog) and learn as much as you can, but more importantly, start putting some of the advice into practice. It’s a whole lot more fun (and profitable) to be in the game than it is to stand on the sidelines watching everyone else.

Do you struggle with credit card debt? Maybe a better question is… Are you still struggling with credit card debt? You know that you should get out of debt; you’ve read about it and been told about it countless times. You now need to figure out what it is that’s keeping you in debt or what it is that’s holding you back from getting out.

I’ve seen too many people that all but forget that they actually have a balance on their credit cards. When these people get their statements in the mail, they ignore the balance and only focus on making the payment that is required like it’s a gas or electric bill. This is not the correct way to handle credit cards. Don’t just make a payment. Realize that you have a balance, a debt owed, and make steps to eliminate it. You’ll never get out of debt if you don’t.

I’ve also seen people who just have to spend money. If they’re bored or don’t really have much to do, their natural inclination is to go out and buy something or entertain themselves in some way that usually costs money. This type of person is never satisfied with what they have, yet they figure that if they just get this next thing then that will be it. Unfortunately it doesn’t ever stop there. This issue is larger than just credit cards. You need to learn to be more content. You also need to be more conscious of what you’re spending your money on. Try a spending log in a small notebook or something similar if it would help.

Some people find themselves in so much debt from which it seems practically impossible to recover. They figure that it’s already a lost cause and they’ll never get out of debt. Because of this, they don’t worry about trying to pay it down; it’s just another drop in the bucket as far as they’re concerned. If you find yourself in this situation, realize that the situation isn’t hopeless. There are steps that you can take to eventually get yourself out of debt. You may not be able to do it all on your own, but you can get help. The best thing to do first is to stop using your cards and start making extra payments.

Whatever your situation is, find out what is holding you back and then take specific actions to remedy the situation. Credit card debt does not have to be a way of life.

I got an email today from someone over at Wesabe. It is apparently a social personal finance site aimed at helping members gain a better understanding of their spending. To do this they offer a free web based tool which I assume is similar to Microsoft Money or Quicken. If you’ve been thinking about trying out a money management software tool, you might want to check them out. First of all, it’s free (at least as far as I know), and it’s another option that just might work for you.

Personally, I’m not really into the whole money management software thing. I find it to be quite time consuming and any data that it may track usually just reaffirms what I already know (i.e. little things really do add up and eating out is really expensive). You may be different though and find such a thing really useful. Thus I wanted to let you know about it. There is no one correct approach to personal finance and you can probably also gain quite a bit from the community aspect.

If you do happen to check it out, please let us all know what you think about it. I’m sure others would also be interested.