It's a bit of a crunch this Christmas in our current economic climate, which means we've got to get creative and try and be as frugal as possible when celebrating. Get innovative, think alternatively and save some cash in the process!

Plan to save

The first thing is to plan and budget. Be realistic about what you need to buy and who you need to buy for.

When spending pay cash, as it's easy to overspend when your charging purchases to your credit card. When the money is coming right out of your bank account, you're more likely to spend less.

The easiest way to stick to your Christmas gift budget is to organise your shopping time. Block out a couple of specific times to shop, and complete it during those times. Browsing leads to overbuying. This being said, shop around for the best price rather than just buy the first thing you see.

Shop online. Although in South Africa this isn't always the cheapest option, you could still find some bargains. The websites www.jump.co.za and www.mykindaprices.com are good examples, as you can find the lowest prices for the items you are looking for.

Save on presents

When it comes to wrapping, you can make your own gift boxes or re-use old ones. If you're really creative you can also make your own Christmas cards, and why not just get your stuff gift-wrapped at the shops, instead of buying wrapping.

Don't buy rubbish that you loved ones will end up throwing away when they clear their desks for the New Year. Find out their interests, and you'll get on the right track.

Think alternatively. For example, is your dad a big fan of the golden oldies? Why not skip the big music shops and browse the aisles at an Empire Records type joint — you're bound to find some bargains, and it's pretty novel too.

Two for one bargains are often a good idea. This means you can get something for two people, whilst essentially paying for one item. Trawl the bargain bins and sale shelves, if you have the time and energy.

In large or small families, drawing names is a great way to cut costs during the holidays. Instead of numerous presents to buy, each family member only buys one gift. The ideal way to conduct the drawing is to set a specific date. The results of the drawing can be revealed or kept secret until the big day. This method will also work with groups of friends and at work if gifts are exchanged.

Only buy for the kids. Only buying gifts for family members under a certain age is another way to cut expenses. Most families who do this limit gift buying to children under 18.

Set a price limit on presents for all family members. This way you'll avoid embarrassment to, as nobody will over- or under-spend.

Consider joint gifts. One big gift that the whole family can enjoy is usually less expensive than several smaller ones. Stuff like DVD's, board games and hammocks are good for families.

Save on other things:

Christmas lunch is a must, but honestly who wants to eat fancy roast chicken with stuffing in 40-degree heat? Why not have a lighter lunch and save money. For example, just prepare cold meats and salads for Christmas day and have a picnic instead of spending the day sweltering indoors. It is summer after all.

Stay at home this holiday. It's great to have a holiday away from home, but can also be tiring and expensive. Why not chill out at home or close to home and spend money on spoiling yourself instead of trying to tackle the roads.

Go green. Why not make your own Christmas tree. You could find yourself a reasonably sized dead branch, take off the leaves and spray paint it white and then get some cheap decorations for it. This also looks pretty stylish. Alternatively, why not dress up a tree in your garden — it'll also look cool at night if you add some lights…

Make new decorations instead of buying them. Many craft stores have special Christmas sections with all the supplies you will need.

Just remember that every cent you save is going to make your life that much easier when the long month of January rolls around...