1. I think one of the main things you have to do is watch what you spend and only spend cash that you have to spend. Seriously, if you cannot afford it normally, don't buy it!
2. Get one main item that your family member may want and get a couple more smaller items. What you get this year is more than likely not even going to be used or wanted next year. Think practical!
3. Do not use expensive, over-the-top wrapping paper. In fact, save the bags, bows and paper from this year (or last) and reuse them. Paper can be shredded for stuffing in the bags. You can also use the bags or paper for tags. If you really want to do something different, use newspaper and tie a colorful bow around it. Or better yet, if you have kids, have them paint over white or reused paper for a one of the kind gift wrap.
4. While you are at it, you can make your own gifts. One of the best gifts I ever received was homemade fudge from my Aunt and Uncle. They were having a lean year budget wise but took the time to make this for everyone in our large family. I loved it!
5. Here are some other idea I found around the net:
Budget Friendly Food
Budget Friendly Gifts
Budget Friendly Decor
Hope everyone has a lovely holiday season.