- 1). Set a spending limit for your holiday and stick with it. Lower costs by purchasing fewer gifts this year, planning less travel if you usually celebrate away from home and choosing one adult to buy for if you have a large family. Get creative with your decorations and gifts. You don't have to spend a fortune to enjoy your holiday.
- 2). Do gift research. Shop online to compare prices at competing stores. Take advantage of free shipping and Internet bargains, plan to visit stores on sale days, use coupons and shop with a list that meets your budget.
- 3). Stay debt free--leave your cards at home and only bring cash if you can. Paying interest on your purchases only increases their costs and your stress. If you have to use credit, use the card with the lowest interest rate but make sure you aren't spending more than you can pay back.
- 4). Watch the extra expenses with lighting costs, holiday food, additional travel and other things. Limit the decorations and the number of string lights you put up this year, or put them on timers so you don't rack up a huge electric bill. Make your holiday party potluck to split the meal costs.
- 5). Don't make the holiday about money--focus on family, togetherness and celebration. Teach your children about the history of your holiday and make them a part of the process when it comes to decorating, cooking and wrapping. Listen to holiday music, light a wood-burning fire, watch traditional movies and donate canned goods to those less fortunate. The holiday season is about memories, not material goods.
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