Many people are approaching the holidays carefully again this year exploring avenues to trim their budgets without sacrificing the joy of the season.

I’m always impressed by those who plan for the holidays by saving in advance. Doing that frees you from credit card remorse in January. If you don’t already have a budget item in your Mindful Cash Flow worksheet, be sure to include it now so you’ll be better prepared next year.

To make this holiday gift-giving season a little smoother financially, consider these guidelines:

Create a spending plan for the season. Customarily, this amount can be anywhere from 1% to 3% of your annual income. Include not only the gifts but also include money for decorating, travel and entertaining. If you find yourself over your budget before you even begin shopping, then trim some people and events or decide to reduce other areas in your budget to have more for this category. Update the plan frequently so you know exactly where you are in the overall plan. It’s worth the time it takes now to avoid guilt or remorse later.

Create a time schedule for the season. Get out your calendars and block out the parties, entertaining, and actual times you’ll spend shopping, both online and in the stores. Getting all that excess information out of your head and put in some kind of structure will allow your mind and body to relax and enjoy the season more.

Plan your shopping list in advance so you’re not tempted by impulse purchases. Begin by researching the items online to get price ranges. Then keep your eye out for local price wars on that particular item or something similar. Several major retailers have announced they will offer holiday reductions weekly.

Shop early. This year it will be especially important to shop early. According to the National Retail Federation, merchants will be watching their own budgets and stocking accordingly which means last minute shoppers may have less selection.

Making your own gifts is often recommended and some take very little time. At www.about.com, I found 100 Home-Made Gift ideas. A few of the gifts, such as #5 Bath Salt Recipe and #26 Cookies in a Jar caught my eye. They’re easy, inexpensive and fund!

If there’s no extra time for you to make gifts now, consider offering “Certificates” for child-care, preparing a meal or hosting a cocktail party for the recipient and a few friends (including you!) at a future date.

Give a gift in the name of your friend that supports a worthy cause. Heifer International is a charitable organization that works in the areas of livestock and agriculture to develop programs that alleviate hunger and poverty. It would be a novel and special gift to give a goat or sheep in your friend’s name. You would also be modeling important lessons about sharing and generosity to those around you.

Give a gift of thanks. Take some time to write a special note of appreciation for that special person in your life. Include sweet memories and special words of wisdom they shared with you. Highlight the ways this person has impacted your life and the qualities you treasure in them. This note can accompany a gift or be a very special gift in itself. The only cost is your time and it just may be the most treasured of any present you could give.

Be sure to schedule in some extra relaxation and exercise time for yourself. For some people, we’re more likely to want to get something handled quickly when we’re tired. That may not be the more frugal way to address a particular situation. I’ve often seen people “throw money at a problem” simply because they are too tired and too busy to explore other options that might be available to them.

Living simply and frugally is becoming much more main-stream now. Before you get caught up in the business of the season, make sure you have your priorities about family and friends in place. Once you know what’s really important to you, everything else can fall into place.

I’m very interested in hearing how this works out for you. Please let me know.

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