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Second, create a budget based on your own finances and not what it is you would like to do. The people on your list will probably appreciate the less expensive presents you buy them as much as more expensive stuff. It's definitely true that it's the thought that counts.
Make your gifts
There's just nothing that beats a homemade Christmas gift where you've not only put thought into it but your time and efforts as well. Anyone can buy a Christmas gift. But it takes a special person to make them. It's also great to give personalized gifts. Instead of shopping at those expensive, trendy shops, take a moment to think what the people on your list could really use. As an example of this, suppose you have a friend who loves to bake but can't seem to ever do homemade piecrusts right. You might buy her an inexpensive pastry-making tool for less than $10 and then wrap it up with a copy of some foolproof recipe. You can just imagine how much she would love the gift and yet you’ve spent next to nothing.
Collect coupons and coupon codes
You may be able to find some very good sales before the holiday season, especially those legendary Black Friday sales. But there are other ways to save money on your gifts. For example when you're shopping online, first do a quick web search for coupon codes that you could use on your favorite online stores. Also, comb through the coupons you receive in your mailbox before hitting the mall. Don't forget to comparison shop. It's possible save anywhere from $10 to $100 on an item just by watching out for deals. Speaking of which, here’s a video loaded with good tips for shopping online.