Dreading the holiday drain on your pocketbook? Americans spend more during the holidays than at any other time, and this year it's even more problematic with prices up and wages stagnating. How can we make that same trip to grandma's house, keep the kids smiling, and keep our coworkers knee-deep in Secret Santa gifts without breaking the bank?

Set a limit & stick to it
"Before you shop, establish a firm budget for everyone on your list and stick to it," says Jennifer Melnick Carota, a professional board-certified counselor and author.

"If you’ve tried slashing your budget in the past and been frustrated, know that this time it’ll be different because you’re not alone," explains Dr. Kit Yarrow, consumer psychologist at Golden Gate University. "There will be a lot of social reinforcement to cut back--in the same way that comparing new goodies was fun in the past, comparing savings will be fun now."

Consumer finance expert Ethan Ewing, president of Bills.com, advises us to remember to include every last aspect of your holiday: cards and postage, decorations, entertaining, including food, drink, special garments, and child care, year-end tips for mailmen, babysitters, housecleaners, hair stylists and other service providers; gifts for teachers, doctors, neighbors or others close to your family; and, yes, travel costs.

And about those travel costs...
Live Search Farecast (http://farecast.live.com) is a great online tool that answers the important question “should I buy now or wait?”

Farecast compares, filters and sorts flight results from hundreds of airline and agency websites and uses its proprietary technology to predict whether a fare is rising, falling or holding steady.

It then pulls out the best fares from a specific destination and shows travelers whether that “deal” saves them $50, $100 or more over the average airline ticket.

Go online
"Before you ever buy anything online, do a quick web search for "[insert store name] coupons," says Andrew J. Chinnici for Woot.com. "There are a bunch of coupon collection websites out there (slickdeals.net, fatwallet.com, etc) that do nothing but collect coupon codes. Use them to your advantage!"

“When free shipping is available, online purchasing is quick and convenient, and a great way to send gifts directly to out-of-state family and friends," says Ewing.

“If you buy gifts that will be shipped, order everything at once. You’ll save time and minimize shipping costs, as well as the environmental impact of shipping. Instead of paper holiday greetings, send electronic cards: even free versions are available.”

Or purchase discount gift cards at Plastic Jungle (www.plasticjungle.com), where you can get cards for up to 40% of face value, sell them for cash, or trade them for something else.

Keep it simple, silly
"Simplicity feels psychologically better than excess," says Dr. Yarrow.

Explain to friends and family your plans to keep this holiday simple. "Inform 'gift-grubbing' friends or family that you want to make the holidays more meaningful, and that you will be finding ways to share experiences, rather than giving expensive gifts," advises Ewing. "By setting expectations early, you can avoid holiday disappointment."

Get together
The holidays, after all, are about togetherness--not money.

"Host a card-signing party," offers Ewing. "In lieu of gifts to friends, gather to prepare holiday cards together. Ask each attendee to bring cookies or an appetizer. You provide drinks, tables to write on, and plenty of pens. The fun will provide more memories than a gift--on the cheap.

“Or have a kids' afternoon that will wear little bodies out (a gift to parents, too!) and provide fun memories. Try a trip to the pool or a nearby hike. Afterwards, invite everyone in for hot cocoa and spring for a few gingerbread house kits. Kids can take their creations home to last all season."
 
Don't buy for yourself
The National Retail Federation found shoppers take advantage of sales to spend another $100 on themselves. Ewing advises us that if we must splurge on ourselves, we keep it to a limit of $10 or so. "Remember that Santa likely will be bringing some goodies for you, too."