Curb the Urge to Splurge at the Mall

Here's a little secret. It's a guaranteed way to save some serious cash this holiday season.

Pay with cash.

OK, so maybe that little tidbit isn't as earth-shattering as, say, the formula for Coca-Cola or the (hopefully) someday-to-be-revealed reason why the passengers of Oceanic Flight 11 got stuck on that island. Still, the No. 1 way to curb the urge to splurge and stick to your budget is simple: Leave the credit cards at home. With your spending limit set by what's in your wallet, you'll be more thoughtful about each purchase and less likely to succumb to impulse buys.

What's wrong with credit?
Yes, credit cards are more convenient -- they offer purchase protection, rewards, an easy way to track your spending (albeit after the damage is done), and they take up less wallet room. But if you tend to overspend, going on a cash diet during the holidays can be a boon to your bottom line.

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?)

Consider how much you'll save if you manage to cut your holiday spending by just a little. For the average consumer -- who, according to the National Retail Federation, will spend $800 on holiday cheer -- cutting the tab by 20% puts $160 back in your pocket.

No cash-back or mileage program can top that kind of savings.

Shopping is Dayana Yochim's cardio. She is the advisor for GreenLight.Fool.com, a personal finance/beginning investing service that's the ideal accessory for every financial situation.