Have a tightwad's Christmas

By Liz Pulliam Weston

Money's tight, the credit cards are maxed and you're not much of a hand at making crafts anyone would want to receive.

So how do you manage holiday gifts without raiding your 401(k)?

First, the obvious. Before you buy the first present, make a list of everyone you'd like to buy a gift for and set a limit of how much you want to spend on each. Total those figures, then add in what you expect to spend for decorating, holiday clothes, tips, entertaining and travel.

Trim down and try something new

If the grand total is overwhelming, start trimming your list. Some ideas:

• Agree to exchange cards instead of gifts with friends.

• Have a potluck instead of an elaborate feast that requires you do all the work (and grocery shopping).

• Make do with last year's decorations and clothes, or swap with friends.

• Persuade your extended family to draw names rather than have everyone buy everyone else a gift.

• Boot the adults and give gifts only to the kids.

Once you've got the list, consider the following ideas to help you get the most bang for your holiday bucks and skip the expensive, last-minute rush at the mall:

Cruise the deal sites. Web sites like Ben's Bargains, Deals of America, My Bargain Buddy and SlickDeals.net can alert you to killer bargains around the Web, such an Amazon.com Baby Store sale where a leopard-print fleece infant jacket could be found for $3 and a Dr. Seuss sun hat for $2.60. Another deal: a well-made acoustic guitar for $40, half the usual price, plus free shipping from Musician.com.

Nabbing the best deals often requires vigilance, since the real bargains tend to come and go quickly. The guitar deal, for example, lasted just a few hours. Of course, you'll need to make sure you're not buying a bunch of stuff you don't need or can't use. A bargain's not a bargain if it induces you to spend money you wouldn't otherwise.

Use your spare change. Got a big bucket of pennies and other coins? Haul your clanging cache to your bank, if it offers free sorting, or look for a Coinstar sorter that offers gift certificates in lieu of cash. Certain Coinstar machines waive the usual 8.9% fee when you opt for gift cards or e-certificates, and the providers include Amazon.com, iTunes, Eddie Bauer, Starbucks, Pier One and others. (You can give these cards directly, I suppose, but I argue against it in "Gift cards are not gifts." I use 'em to buy REAL gifts.)

• Talk back: How much are you spending on holidays this year?

Check your credit card rewards. You may be able to turn your frequent-flier miles or other points into decent gifts, but watch the exchange rate.

With many reward programs, you're lucky to get half a cent for every mile or point you turn in for merchandise, and some offer much worse deals than that.

When used for travel, by contrast, the average value of a frequent-flier mile last year was 1.6 cents, according to IdeaWorks, a company that tracks such things. A mile is typically worth even more to elite frequent fliers, who use them for upgrades, and people who use their miles for free international flights.

If you're not going to use your rewards for travel, you may get the best deals by selecting gift cards or certificates, and using those to buy merchandise either online or in stores. Discover's cashback program, for example, offers to double a $20 cash back amount into a $40 gift certificates at Crabtree & Evelyn, FTD.com, Mrs. Fields and The Sharper Image. Wells Fargo Business Card Rewards converts 10,000 points into $100 gift cards from Visa, Macy's and J.C. Penney, among others.

Sell last year's misfires. Typically, the longer you wait to sell something, the less value it has. So round up the latest batch of clothes that didn't fit, gadgets you didn't need or knickknacks that didn't suit and get them listed on an auction site like eBay (good for collectibles, clothes and small electronics) or a classified site like Craigslist (best for big, bulky items). If weather in your area permits, a pre-holiday yard sale might help you generate some coin.

Scope out your job perks. Some companies, colleges and government agencies offer discount passes for movies, theme parks and other venues. You're not supposed to sell these tickets, but you're typically not forbidden from giving them as gifts, and someone who doesn't have access to such perks might appreciate them.

Look for two-for-one deals. Magazines and museums, in particular, often try to extend their audience by having current customers hook up their friends with a free subscription or membership. You may get these offers in the mail, or you could try calling the subscription hotline and ask if they're planning to offer any two-for-one deals. Parents magazine recently offered a rare three-for-one deal for certain subscribers: pay for one year and you could send two free subscriptions to friends.

Continued: Try giving photos

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