Make a Budget – Once you set a budget, stick to it. Figure out how much you can spend realistically this year on Christmas. Once you figure that out, decide how to split it between each recipient.
Pay Cash – Whatever you do, if at all possible, do not use credit cards. Paying with cash will make you think before you buy and you will have to figure out if its worth spending the money on the item you are buying.
Make your own Gifts – It doesn’t have to be tough to make your own gifts. There are many easy projects out there, even ones for the kids to make. And what grandparent wouldn’t love a homemade gift from their grand-kids? And save even more money by using things you already have at home, scrap material, old clothes, glass jars all are great things to stash away for Christmas gifts.
Track your Spending – Make sure you keep track of what you spend. It might be worth it to get a little notebook to keep receipts or just to write down what you bought so you know when you have hit your limit. You can also refer to it when you are getting ready to spend money.
Buy used if you can – Buying used doesn’t mean you aren’t giving the best. Some used, like for instance on Amazon, are as good as new. Check out the deals on Craigslist too. But always check and make sure it works before you buy anything. Ask if you can plug the item in if electrical and check out everything before you buy.
Wrap with magazines or newspaper – This is not the biggest money saver but it does save enough to make it worth the effort. Try making your own bows, its easy and all you need is magazines and staples. Make your own wrapping paper from shopping bags or newspaper.