Spend Selfishly This Holiday Season

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Who cares about what the average shopper is going to spend during the holidays? Pay no heed to the percentage of consumers saying they're going to cut back — or perhaps pile on — compared with last year.

'Tis the season ... to be selfish. As you shake the dust off your fake fir tree and overcaffeinate for your ninth trip to the mall, the person in the forefront of your mind should be you and your financial well-being. What good is it to buy gifts you can't afford if you're going to be miserable and depressed the rest of the year trying to pay off your holiday debt?

This year, your No. 1 goal should be to celebrate the holidays in a manner that aligns with your actual budget, not the one that marketers and merchandisers try to set for you. After all, the most important thing you can offer your loved ones is the TLC of your and their financial futures. Here are some tips to help you practice fiscal prudence this holiday season.

Make a list. Really. It might sound like something that only those hyperorganized people do. (They don't. They had this year's gifts wrapped and ready last Dec. 26.) But committing your holiday-gift hit list to paper will help you organize your strategy, give you time to shop around, and make you think twice about spending $286 on impulse items. A few tips on making a list that works wonders:

Be vigilant about culling names. If you feel really guilty about leaving someone off, remember: a thoughtful and personalized card is better than a hastily selected gift.
Identify people who would appreciate a homemade gift, or perhaps a gift of your time.
Ask other adult family members whether they'd consider picking names from a hat, so that there's less pressure on everyone to buy an entire round of gifts.

Exert your energy searching for big-ticket savings. No need to drive around all day to find the best price on wrapping paper and snow-globe stocking stuffers — unless you're really sick of rewashing the dishes just to avoid the in-laws. Concentrate your cost-cutting first on high-dollar purchases. Then tackle the smaller stuff as time, energy, and sanity allow.

Work your connections. Travel clubs, professional groups, the military, and credit unions often arrange discounts on goods and services for members. Do your retail recon now, before everyone else gets desperate and snaps up all the good stuff.

Shop with blinders on. Avoid last-minute upgrades by picking the must-have features and target price range for more complex goods such as electronics and small appliances. Weigh the merits of each product independently. Compare like with like — and erase from your mind the alternatives that don't fit your criteria.

Go on an all-cash diet. Yes, credit cards are convenient. They offer purchase protection, rewards, and an easy way to track your spending (albeit after the damage is done), and they take up less wallet room. But they're also too convenient. Studies show that people spend more — and more impulsively — when no actual cash changes hands. Plastic makes us devalue what we spend, because we don't experience the immediate loss of buying power that we do when we pay with cash. Why do you think they use poker chips and not actual currency in Vegas?

If you tend to overspend, leaving your credit cards at home during the holidays can be a serious boon to your bottom line. Not to mention that when the money runs out, you're done shopping! And then it's time to learn how to make homemade jam.

Pacing and moderation — good for exercise, shopping, and holiday spreads, according to Fool.com columnist Dayana Yochim.