Here are some tips on how to plan it.

Christmas is considered to be the most special time of the year with reverberation of the Christmas carols and tales of Santa Claus. We often feel like giving gifts to our dear ones to acknowledge their presence and it also helps to rekindle your relationships. But after the recent economic downturn many people suffered job loss and incurred insurmountable amount of debt. Many people enrolled in a debt consolidation programso they have planned for a frugal Christmas this year.

Therefore, people are more cautious and they are curtailing their expenses related to Christmas. A proper frugal planning doesn’t let financial crisis dampen their spirit of Christmas. Here are a few effective steps to reduce your expenses without spoiling the magic of Christmas:

1. Create a Christmas budget:

Creating budget helps you avoid splurging your hard earned money. You can also set a limit to understand the amount you want to spend on each person. Make sure that you prepare a list of the people you plan to give presents. You can also plan things that you wish to give them as gifts. Try to find gifts that are affordable for your pocket and useful for your friend or relative.

2. Make Frugal Christmas gifts:

If you think you will not be able to buy gifts for your dear ones this year then you can make some frugal Christmas presents. You can make Christmas mugs along with candies, holiday candles or Christmas ornaments. You can make simple ornament from shells or beads. Take a needle and thread then put the beads or shells through the thread to give a shape of a neck piece. If your loved ones are interested in cooking then you can collect recipes from your grandmother and make a note of it in a scrapbook. Use a bright and colourful paper to wrap the scrapbook cover page. It might be something useful and interesting gift for that individual.

3. Organise a potluck party:

If this season you have planned for a frugal Christmas then you can easily organise a potluck party or Christmas meal. When you plan for the party then ask your friends or relatives to contribute something for the feast. When you invite them ask each one of them to prepare a sumptuous meal or dessert for the dinner.

4. Look for good deals:

Make sure that you start your planning few months before Christmas then it will help you arrange things in an organized way. Try to look for good deals and discounts in the departmental store when buy gifts for your loved ones. You can avail coupons when you buy items for preparing a Christmas dinner. If you use your coupons or discount offers then it will be beneficial as you can save considerable amount of money.

These are the four essential ways to organise a frugal Christmas without burning a hole in your pocket.