3 tips to create and stick to your financial goals this season

(BPT) - Holiday sales are expected to reach more than $600 billion this year, an increase from 2013 according to the National Retail Federation. For the average household, that equates to spending $804 on gifts - up 5 percent from last year. And rest assured retailers will be pulling out all the stops to get you to spend more than you initially planned. That is why it’s easy to get carried away with the spirit of the season and overspend. But before you let Scrooge-like tendencies get the best of you, here are three tips to stress-free holiday spending.

Set spending limits

Set a holiday spending limit of no more than 1.5 percent of your annual income. This budget should include gifts and all the seasonal extras, including turkey dinners, decorations, postage and party apparel. Calculate how much you can afford to spend in each category, including spending caps for each person on your shopping list. Determining these limits before you leave the house or surf the cyber sales will help you stay on track financially as the season heats up. Regions Bank has an easy-to-use budget calculator at www.regions.com/personal_banking.rf.

If dipping into emergency funds or going into credit card debt is a concern, consider opening a separate account dedicated to your holiday needs. You can transfer money from your primary checking account on a weekly, bi-weekly or monthly basis. The separation of these funds from other savings will help keep you within budget.

Create a shopping strategy

You’ve determined your budget, but before you spend a cent, take inventory of what you have on hand, including holiday decor, stockpiled gift bags and wrapping paper, as well as any presents you may have purchased throughout the year. When you’re ready to shop, don’t forget your list and spending limits.

While at the mall, try to avoid impulse purchases and remember to comparison shop. Deals can be found everywhere, so keep an eye out for sales and coupons, and take advantage of free shipping and searchable discount promo codes for online purchases. You can find coupons and promo codes online using sites like coupons.com.

Sign up for financial alerts from your bank to keep closer tabs on spending. These alerts can be delivered directly to your cellphone or email once you’ve reached a certain spending threshold. For instance, Regions Bank’s mobile banking offers an array of on-the-go account management features.

Cash in on last-minute deals

Watch for great deals as the holidays near. The season’s hottest toys typically drop in price during the first two weeks of December, according to Dealnews.com. Of course this is only so long as stores still have some in stock.

And don’t forget about the benefits of donating to charity. As the new year approaches, gather unused clothing and household goods, along with surplus holiday items, and give them to a worthy cause. Come tax time, you can take a deduction for items donated by the end of the year. The IRS requires you to calculate the fair market value of donated items and obtain receipts. Use Goodwill’s value guide as a baseline. When this money comes back to you in the form of a tax return, consider putting it aside for holiday spending in 2015.