by Mario Carini

Created on: November 21, 2009

While the economy is showing signs of improvement many merchants are worried that this holiday season will see less spending than in the past. The stimulus package has provided jobs and kept many employed, but the future still looks doubtful and has many people holding the purse strings tight until employment numbers improve and full recovery is in full swing.

If you're not planning on spending too much for Christmas this year, you don't have to throw out all hope of satisfying the wants and needs of all the family members on your gift list. You can still have an enjoyable holiday season and not feel guilty that you couldn't spend quite as much as you usually do.

Frugal holiday spending starts with understanding your current financial situation and how much you can afford to spend. Take a close look at your finances and the projection for the future. If you anticipate a layoff, you'll need to plan for its eventuality.

Frugal holiday spending starts by letting your family know about your buying habits before Christmas. If the family finances aren't rosy, most members are willing to pitch in to help and your friends and relatives are likely to be forgiving.

When times are great, few people think of a budget. But in a recession a budget is vital. It controls the urge to overspend. You know exactly how much money you allow yourself to spend and that enforces the discipline to stay within the limits. The last thing you want are those nasty surprises come January.

Once you know how much you've earmarked for spending, your next step is to draw up that gift list. Put down the names of those people who mean the most to you and what they want. Since your budget is limited, leave out those friends and coworkers. You should already have made it clear that this Christmas, you need to be frugal. Once you've created your gift list, you'll need to do some trimming. Family members always want more than one gift, so pick the one you think they'd like the most. The best gifts are not necessarily the most expensive.

Start your shopping early. The holidays are a hectic time for many people, but if you know what you need, you can get them without the hassle of waiting in long line ups. Some items can be cheaper to buy months before the holidays when the price rises. But don't limit your shopping to major stores in shopping malls. Take a look at yard sales, flea markets and discount stores. They can provide you with low cost gifts that can be as appealing as something new..

Make your own gifts. Many people have talents and skills that can be used to make wonderful and lasting gifts. Knit a sweater for the kids or create your own gift basket of jams, coffee, scented candles and flowers. Instead of buying Christmas cards, create your own with unique designs on your computer and print them out. Be creative with stenciling and calligraphy.

Eliminate the gift wrap. Most of it will eventually go into the trash anyway, so buy the cheapest or simply wrap your gifts in tasteful decorated paper or gift boxes you make yourself. Tree ornaments, wreaths, and various products can put a dent into the budget, so forget them. Swap things with your neighbors and friends if you want to give your home a special holiday look. Switch to cheaper LED lights to save on power. Buy an artificial tree over an original pine so you can use it year to year.

If there's one advantage to economic difficulties, it's that it forces you to be creative. Thinking up new ways to decorate your home and please all the family members can put the joy you once had about the holidays and make Christmas memorable as it should be.

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