Every year when I was shopping for Christmas gifts, I sighed to myself: what had happened? Looked at my credit card bill for November. I have spent more than $1200 on gifts. I don’t know how much I am going to spend in December. If it is more than $2000, I will have to use the money in my saving’s account. I have read many money saving tips on newspapers and magazines. Here are some of them I think are very helpful.

1. Don’t Overspend
This may be the most important rule for me. On average I will give $25 to $50 worth gifts or gift cards to my kids’ teachers and my bosses. Cut it to $10 according to the experts and try to buy gifts from discount stores. It is hard to tell the difference from a $10 gift to a $50 gift. Parents may spend $100 to $200 on kids’ gifts. This is just too much. If your kid asks for a expensive gift, ask them for the money from their own piggy bank.

2. Buy gifts when they are cheap
It is very hard to shop cheap yet good gifts especially during the holiday season. What you need to do is to stock up the gifts all year long whenever you saw a good bargain. Black Friday is a good chance for cheap gifts. And watch out all major holidays. Most merchants will have big discounts during those days.

3. Buy gifts online
Do your research online, you will find 99% of chances are that prices are way cheaper if you buy them online. Some online stores offer free shipping while some not. Personally I will use free shipping only. Standard shipping will typically take one week on the road, which means you have prepare all your gifts at least one week before the Christmas. Pay extra for faster shipping is a waste of money!

4. Gifting at no cost
For co-workers, friends, classmates, etc, send a warm email or e-card for the holiday is enough. If you have to give a real gift, make one by yourself.

5. Do not over tip
During holidays it is very common that you over tip your waiters and stylists. If you are short of money yourself, I don’t think it is a good idea to tip anyone over 15%.

6. Avoid traveling in holidays
Holidays are for family gathering. Stay home with your kids, your parents, and your friends. They are the one that make you laugh. Plan the vacation in a less-peak time, such as summer. It could save you hundreds of dollars on flights and hotels.

7. Cut back your holiday parties
An average party with 20 guests will cost you $400 if you prepare everything by yourself. But the cost will cut into half if you host a potluck party. And remember, alcohol may be the most expensive items. Ask the guests to bring their own alcohol if they want to drink.

8. Decorate for less
You think those lights are cheap? Ornaments? Power cords? Don’t buy some of them every year? And don’t forget the electricity they consume. If a Christmas tree is a must, buy a plastic one at no more than $100, and it will last forever if you take good care of it.

And lastly you need to watch closely on your bill every week if not everyday. This is a good habbit for a frugal life. Start it today if you have not. Some family may spend a few hundreds for Christmas, while some may spend a few thousands. But no matter how much spend, I am sure you can cut back a big chunk if want to.