DIY Life

You shop the sales. You've already reduced your holiday spending budget. But let's face it: the holidays are still going to cost you. Really smart budgeters contribute small amounts all year round to holiday savings accounts. For the rest of us, it's not too late! Here are some last minute ways to put money aside for holiday gifts.

1. Open a holiday account. No, it's not too late. Do you have any free funds sitting in your checking account? If so, transfer them immediately to your holiday fund. It's a start.

2. Cut the lattes. Yes, it's annoying when budgeting experts keep reminding us not to fritter money away on expensive little luxuries. If you like to indulge in little treats for yourself, however, now's the time to go cold turkey. Not forever. Just for the next few weeks, and put that money aside. It will add up over the next few weeks.

3. Slash your grocery budget. Don't worry: it's just temporary. Whatever you don't spend on groceries from now through Christmas can go into your holiday fund. Stock up on fresh essentials like fruits and veggies, but try and make do with dry, canned and frozen foods you already own. You may be surprised how much good stuff your pantry has accumulated.

4. Clean out your bathroom cabinets. After cleaning out the pantry, go through your bathroom cabinets. You'll discover shampoo and moisturizers you forget you ever had. Use them up and don't buy any new toiletry or beauty items 'till the New Year. Again, put your savings into the holiday shopping fund.

5. Cut cable. Can you live without cable or other electronic services for a few weeks? Could you compromise by at least reducing those services until the holidays? Every dollar you save goes straight into your growing holiday fund!

6. Eat in. If you're reading this, chances are you can't really afford restaurant meals right now. So have an at-home pizza night once a week and stash the savings. Same goes for lunches. Commit to brown bag lunches for the next several weeks. Chances are you'll be amazed at how much cash accumulates over time.

No, you don't necessarily have to go without. Take this great example from World Village: if you adore your daily 10 am coffee and muffin, make your own muffins on the weekend. Wrap them individually and freeze. Voila! Who needs Au Bon Pain?

7. Inventory time. Go through your closets before spending a dime on wrapping paper, gift boxes, ribbon, cards and tape. Chances are previous years' leftovers can take you a long way, and the money saved can go towards your gift fund instead. Then, when the holidays are over, swoop in on the clearance sales and stock up on half price cards and wrap for next year.

8. Cash, check or debit. Try and make all purchases using cash, check or debit card. Leave your credit card at home if you lack discipline. Yes, you may have to spend less per person when gift shopping. But, hey, do you really think your family and friends want you to go into debt for them? Of course not. Keep this thought in mind each time you make a purchase.

9. Track spending. The best incentive for staying debt free is to track spending religiously. When you get a sense of how much money you're actually spending on the holidays, you may well be shocked into a more frugal saving and spending strategy.

10. Holiday Fund 2010. Be inspired by your struggle to stay on budget this season. Vow to start the New Year off right: open a holiday savings account for next year's celebration.