- Have you ever counted up just how much you spend on holiday gifts, travel, and entertaining? It wouldn't surprise me if you're as afraid to do that as I am! If you really want to know what it all adds up to, I found a holiday spending worksheet online from Smart Money magazine. It includes categories for Gifts, Decorations, Entertainment, Travel and other expenses. You can enter a budget figure and also track what you actually spent. The site allows you to save the information you entered on your computer, so that when you return with more information you won't have to start from scratch again. The categories remind you not to forget little extras like a tip for your hair stylist, or the postage on your Christmas cards. There's even a reminder to record the cost of meals you eat out when you're shopping.

Ric Edelman, nationally known and Fairfax-based financial planner, was quoted in an article on www.bankrate.com with some advice for us when it comes to keeping control of the money we spend over the holidays. Instead of making a list of *who* you want to buy a gift for and *what* you want to buy for them, make the list of names and note *how much* you want to spend. Total up the amounts. If you can't afford to (or don't want to) spend that much money, go back and reduce the amounts or (gasp) take people off the list. Don't forget to consider other holiday costs when you are asking yourself how much you can afford to spend. As noted on the Smart Money worksheet above, there are lots of opportunities to spend more at this time of year.

Once you have a number you think you can live with, my advice is to start putting money aside now towards next year's Christmas spending, since this newsletter probably comes too late to be able to make a dent in this year's spending. Banks used to offer Christmas Club accounts designed to automatically withdraw an amount you specified from your checking account every week until December, when you'd have a nice nest egg to cover holiday bills. While actual Christmas Club accounts are now rare, you can make a similar arrangement with any regular savings account by asking the your bank to set up the automatic weekly transfer. Or, if your employer offers direct deposit of your paycheck, ask if you can have part of each check sent to a separate account. If you start making the transfers to the savings account the first week in January next year, you will have your nest egg finished in the middle of next December. Then you can withdraw the money and go shopping with the cash. If you limit your spending to what you have in cash, you won't bust your checking account or add anything to your credit card bills to pay in January 2005!

- Inexpensive Gifts: Remember that it's the thought that counts. One year I gave Post-It Notepads to co-workers. Each pad had a cartoon character and funny line on it, which I tried to match to the style of person who was receiving it. Everyone was impressed that I had found something that reflected their personality.

When I don't have any idea what I want to buy and I'm looking for inspiration, one strategy I use is to go to the lowest price store first and see if I can find anything for the people on my list. I work my way up through deep discounters, outlet stores, and warehouse clubs before I consider traditional department stores. If you have a specific gift in mind, stop and ask yourself where you could expect to find it cheaper before you automatically run to the nearest or easiest place to get it. Check to see if anyone is selling the item on eBay to get an idea of how low the price could go. There are some pretty incredible sales and markdowns out there right now, in stores and on the internet, so if you see a true bargain, snap it up! Even if you don't have anyone in mind to give it too as a Christmas present, remember that everyone also has a birthday at some point during the year. Buying an items that are sale priced now may save you a bunch on your total gift giving expenses next year.

There are many websites that specialize in collecting special offers and sales from different vendors. One to check out is www.gotapex.com. While technology items are the most prevalent, many other kinds of goods are listed, and there is a box that lists all sorts of stores with coupons or special offers. There are also many price comparison search engines and sites. If you are shopping online, make sure you review the tips in the June and August issues of this newsletter for more ways to save.

- Beware of gift cards: Stores love selling gift cards and certificates because some of them will never be redeemed for merchandise. Many now also assess inactivity fees or include expiration dates. Make sure you read the fine print before you get one of these as a gift.

- Make it yourself: Handicrafting has become very popular. If you have the time or talent, consider making some of next year's holiday gifts yourself. For this year, consider giving kits or supplies with a certificate good for your time to share the assembly task with your recipient. Many craft stores now hold classes to help you get started on various projects. If you have children in your life, this can be a great way to spend some time together. One of my fondest Christmas memories is from when I spent an afternoon with my Grandmother and her garden club putting together wreaths from greens they had cut from their yards.

- Buy in bulk: If you have a Costco or other warehouse club membership, now you finally have an excuse to purchase those huge quantities of food: you can assemble your own gift baskets. Even if you aren't shopping at a mega-store, if you intend to buy more than one of something, ask if you can get a discount for your multiple purchases. A friend of mine recently visited an art gallery where he found two paintings he was very interested in. While he was trying to decide which he would purchase, the gallery manager offered to give him a deal if he would buy both. It may be worth going shopping with a friend or two to negotiate prices on items you're all interested in buying, or to split a case in order to take advantage of bulk pricing.

- Book & CD clubs: Next fall think about joining a book-(or music or movie)-of-the-month club if you're interested in giving books, movies, or CDs as presents. They usually offer several nearly free introductory selections to entice you to join. Some of them don't require any further purchase commitment, but others do, so make sure you read the terms and are comfortable with them. Books Online offers over 25 different special interest book clubs, such as mysteries, or science fiction, or cooking, or home improvement, etc.

- Magazine subscriptions: Many magazines subscription rates are a small fraction of their cover price. If you know someone who regularly buys a title from a newsstand or at the grocery store, why not get them a subscription? I've noticed recently that some magazines are offering two-for-one subscriptions, which is a great deal. Magazines.com has a special section for subscriptions that cost less than $10.00, and will even email a gift certificate in the amount you specify that allows the recipient to pick out their own magazine to subscribe to. Amazon.com is currently offering a gift certificate when you place a magazine subscription through their site. (The amount of the certificate varies depending on which magazine you order.) For instance 12 issues of Glamour would cost $42.00 at the newsstand, but you can order a subscription of 12 issues for only $12.00, and get a $5.00 gift certificate from amazon as well!

- Give to charity and take the tax deduction: Getting a tax break for your gift is almost as good as buying things on sale - and you don't have to fight the crowds at the mall! There are so many charitable causes out there that I'm sure you can find one to donate to that will match the interests of your honoree. Don't forget to consider small local charities as well as the national ones. And think about volunteering your time as well as sending money. Perhaps you could give certificates to your friends authorizing them to draft you to participate in one of their favorite charity's activities.

Don't forget to keep track of goods you give to charity as well. If you've bought gifts for Toys for Tots or dropped money in the Salvation Army's kettles, those donations are tax deductible. Do you have a family tradition for your children of selecting old toys to go to Goodwill to make way for new Christmas gifts? Have you cleared out your clothes closets and given the extras away to Suited for Change? "It's Deductible" software can help you figure out the appropriate amount to claim on your tax return.