Christmas lunch

1. Budget. Set budgets for food, drink, entertainment and presents. Challenge yourself with the amounts - it's amazing what can be saved.

2. Save the planet and your cash. Electronic cards can be sent via the internet and can often be free – sending cards the traditional way can often cost around £50. However if needs be, use second-class stamps for further afield and spend an evening delivering them personally in your local area, burning off the mince pies by power-walking between houses.

3. Forget the wrap. Children discard it in seconds and it will also save the clearing up afterwards. If you want them to have an element of surprise, hide the gifts in the house offering clues – like an Easter egg trail.

4. Internet is heavens scent. Perfumes are a top selling gift and can often be expensive on the high street. Visit www.fragrancedirect.co.uk to see how much you can save.

5. Savvy shopping for little or no cost. Sell your unwanted tat (oops...your valued collectors' items you are reluctantly parting with) on www.ebay.co.uk generating money to buy from fellow sellers; this way your present budget can be zero! Alternatively scour craft fairs and car boot sales or get free items by joining a local free-cycle group www.freecycle.org.uk

6. Package the presents. Try and centralise your buying with one store that is happy to negotiate. Buying one gift during peak Christmas trading is tough to gain a better deal, however if you have 5 or 6 to purchase, approach the store offering them the opportunity to have your custom in exchange for a discount.

7. Five gold rings (for the price of three French hens). Do your Christmas food shopping in pairs and take advantage of the many discounted bulk deals and offers available.

8. Loyalty is key. You've been religiously attaining your reward points on your loyalty card, now is the time to use them.

9. Avoid buying selection boxes. Have some fun creating your own, filling it with your recipients favourite choices – they will appreciate the effort.

10. Deck the halls. If you haven't enough decorations, then have some fun making your own and get the family to help.

11. Have a group Christmas party. Instead of going out for an expensive night out, you host the party supplying the venue and entertainment, while friends bring a dish and a bottle each.

12. January joy. Give your loved ones an IOU and take advantage of the January sales to buy them a lovely present at an affordable price – you may even bag a bargain for next Christmas. eBay or similar auction sites are great after Christmas, as many unwanted presents are on offer for great prices.

Marc Lockley is a negotiation coach who writes for Guardian online and is the author of 'How To Pay Less for More', a consumer guide to getting the best deals whatever you are buying. Marc's opinions are his own and for general information only. Always seek independent advice.