Holiday parties are all about spreading joy, catching up with friends and family, and indulging in festive fun. They can be very expensive to host, but they don’t have to be! With a few tricks and smart planning, you can host a fab celebration that leaves everyone smiling—and your bank account mostly unscathed. Here’s how to throw an affordable holiday bash that’s long on charm and short on cost.

1. Set a budget and stick to it

Before you start planning, decide how much you’re willing (and able) to spend. Break it down into categories like food, drinks, decorations, and entertainment. Keeping a clear budget will help you avoid overspending.

2. Keep the guest list small and cozy

A smaller guest list means less stress and fewer expenses. Focus on inviting close friends and family for a more intimate gathering. Plus, fewer people means you can pay more attention to all the little details that make the party special.

3. Send digital invitations

Skip the pricey printed invites and go digital. Use free sites like Evite to design and send festive e-invites. Not only is it cheaper, it’s also eco-friendly!

4. Host at home or a free venue

Venues can suck up a huge chunk of your budget, so why not host the party at home? If space is an issue, consider asking a friend or family member with a larger space to co-host. You can also check out local parks (though in December that could be cold) or community centers that may offer free or low-cost spaces.

5. DIY your decorations

There’s no need to spend big on store-bought decor. Use what you have, like string lights, candles, or ornaments. For an extra festive touch, try making your own decorations, with these DIY ideas:

  • Paper snowflakes: A classic and easy way to add charm.
  • Pinecone centerpieces: Collect pinecones, spray them with metallic paint, and arrange them in a bowl.
  • Recycled jars: Turn mason jars into glowing lanterns with tea lights and a sprinkle of glitter.

6. Potluck party magic

Share the culinary load and cut costs by hosting a potluck! Ask each guest to bring a dish or drink to share. You can provide the main dish and let everyone else fill in the sides, desserts, and beverages.

7. Serve budget-friendly drinks

Skip the full bar and serve a cleverly-named signature holiday punch or cocktail instead. Sangria, mulled wine, or a festive mocktail can be made in large batches and cost a fraction of individual drinks. For beer and wine, look for affordable options at local discount stores or buy in bulk.

8. Simplify the menu

You don’t need a five-course meal to impress your guests. Stick to a few crowd-pleasing appetizers, one main dish, and a simple dessert. Finger foods like sliders, mini quiches, or a charcuterie board are fun, filling, and easy on your budget.

9. Plan free entertainment

Keep your guests entertained with activities that are free:

  • Holiday karaoke: Belt out your favorite carols or cheesy holiday hits. (Is it even Christmas without Wham’s holiday tunes?)
  • White Elephant gift exchange: Set a low price limit and prepare to be entertained.
  • DIY photo booth: Use a fun backdrop (like wrapping paper) and props you already have.

10. Make it a BYO mug party

Turn your beverage station into an interactive experience. Ask guests to bring their favorite mug and set up a hot chocolate bar with toppings like marshmallows, whipped cream, and candy canes. It’s fun, cozy, and very budget-friendly.

11. Embrace minimalism

Less is more! You don’t need over-the-top decorations or an elaborate setup. A few well-placed fairy lights, some holiday tunes, and a welcoming atmosphere will do the trick. Focus on creating a warm, relaxed vibe instead of stressing about perfection.

12. Use what you already have

Raid your holiday stash for decorations and serving items before you buy anything new. Repurpose what you can—like wrapping empty boxes as faux presents for decor or using scarves as table runners. If you’re tired of what you have, see if friends or neighbors want to do a swap.

13. Give lovely parting gifts

Party favors can be inexpensive, but they’re always thoughtful. Bake a batch of cookies or make small bags of spiced nuts to hand out as guests leave. It’s a sweet gesture that won’t stretch your budget.

14. Ask for help

Don’t be afraid to ask friends or family to pitch in. Whether it’s helping you decorate, DJing the party, or lending extra chairs, most people are happy to help make the event a success. (And if they’re not, well… they’re uninvited!)

15. Keep the focus on fun

At the end of the day, it’s not about how much you spend but how much fun everyone has. Laughs, good conversation, and a welcoming host (that’s you!) will make your party unforgettable.