Listen, I get it. The holidays are supposed to be about joy and togetherness, but somehow they always end up feeling like a competition to see who can throw the most Pinterest-perfect party. And then January rolls around, you open your credit card statement, and you’re like, “I spent how much on cheese boards?!”
Been there. Done that. Got the debt to prove it.
But here’s the good news: You can absolutely host an amazing holiday party without draining your bank account. I’ve thrown parties on a shoestring budget that people still talk about, and I’m going to walk you through exactly how to do it.
Set Your Budget First (Seriously, Do This)
Before you buy a single string of fairy lights, decide what you can actually afford to spend. And I mean really afford — not what you hope to magically find in your account.
Here’s what worked for me: I decided on $150 for my last holiday party (for 15 people). That broke down to about $10 per person, which felt doable. Once I had that number, I stuck to it like my financial life depended on it. Because, well, it kind of did.
Write your number down. Put it in your phone. Make it your lock screen if you have to. This one simple step will save you from impulse buying that $40 decorative pumpkin that you’ll use exactly once.
The Guest List: Smaller Can Be Better
I know you want to invite everyone you’ve ever met, but here’s the truth: a smaller, more intimate gathering is not only cheaper, it’s often way more fun.
Think about it this way: Would you rather have 30 people awkwardly standing around because you couldn’t afford enough seating and ran out of food? Or 12 people having actual conversations and enough appetizers that everyone’s happy?
For every person you cut from the list, you’re saving roughly $8-15 on food and drinks. That adds up fast! Plus, smaller parties mean less stress for you, and you’ll actually get to enjoy your own event.
Food: Where You Can Save Big
This is where people usually blow their budget, but it doesn’t have to be that way.
Go Potluck-Style
Seriously, why are we all pretending we have to provide everything? Your guests want to contribute. Send out a sign-up sheet with categories like appetizers, desserts, drinks, and sides. You provide the main dish or two, and everyone brings something else.
Real talk: The last party I hosted, three people asked what they could bring before I even suggested it. People like feeling helpful, and you’ll like not spending $200 at the grocery store.
Focus on Budget-Friendly Crowd-Pleasers
You don’t need expensive ingredients to impress people. Some of my most-complimented dishes cost less than $15 to make:
- Slow cooker meatballs — frozen meatballs + BBQ sauce + grape jelly (I know it sounds weird, but trust me)
- Homemade hummus and veggie platter — costs half what the pre-made version does
- Pasta salad — filling, feeds a crowd, and costs maybe $10 total
- Chili or soup in a slow cooker — warm, cozy, and you can make it the day before
- DIY nacho bar — chips, cheese, toppings in bowls, and people love it
Skip the Fancy Cheese Board
Look, I love a good charcuterie board as much as the next person, but have you seen the price of fancy cheeses lately? If you want to do a board, use regular grocery store cheese, add some crackers, grapes, and nuts. It’ll look just as pretty and cost $20 instead of $60.
Drinks: Don’t Let This Be Your Budget Killer
Alcohol can destroy your budget faster than anything else. Here’s how to avoid that:
Stick to a Signature Cocktail
Instead of running a full bar, make one killer signature drink. Buy the ingredients in bulk, pre-mix what you can, and serve it in a big drink dispenser. It looks intentional and fancy, plus you control the costs.
My go-to: Cranberry mojitos during the holidays. You need rum, cranberry juice, limes, mint, and club soda. Make a big batch for under $30, and people will think you’re a mixology genius.
BYOB is Totally Fine
There’s nothing wrong with asking people to bring their own preferred drinks, especially beer or wine. Most people have specific preferences anyway, and they’ll appreciate being able to drink what they actually like.
Offer Great Non-Alcoholic Options
Not everyone drinks, and good non-alcoholic options are usually way cheaper. Sparkling cider, fancy sodas, or a festive punch can be just as special. I once made a sparkling pomegranate punch for $12 that was the hit of the party.
Decorations: Make It Festive Without Going Broke
Here’s a secret: Your guests care way less about decorations than you think they do. They’re coming for the food, drinks, and company. But if you want to add some festive touches (and I get it, it’s fun!), here’s how to do it cheaply:
Shop Your Home First
You already own stuff! Look around your house for:
- Mason jars (add some cranberries and a tea light)
- Pine cones from your yard (free!)
- String lights you already have
- Candles
- Nice platters and serving dishes
I’ve created entire tablescapes without buying a single thing. It just takes a little creativity.
Dollar Store is Your Friend
Real talk: Nobody can tell the difference between Target decorations and Dollar Tree decorations once everything’s set up. Stock up on:
- Paper napkins and plates
- Tea lights
- Garland
- Ornaments for a centerpiece
Go Natural
Pine branches, holly, or even pretty leaves can make gorgeous (and free!) decorations. Tie some branches together with ribbon you already have, and boom — you’ve got a centerpiece.
Borrow, Don’t Buy
Need extra chairs, serving dishes, or a punch bowl? Ask friends and family to lend them. Most people are happy to help out, and it costs you exactly $0.
The Space: Work With What You Have
You don’t need a mansion to host a great party. I’ve thrown parties in my tiny apartment where people literally had to squeeze past each other to get to the bathroom, and everyone had a blast.
Make it work:
- Move furniture to create flow (you can push stuff into bedrooms temporarily)
- Set up a drink station in one area to spread people out
- Use every surface — counters, coffee tables, even a card table with a nice tablecloth
- If it’s nice out, use your porch, patio, or yard for extra space
Timing is Everything
Host your party at 2 PM and call it a “holiday cocktail party” instead of dinner. People will expect appetizers and drinks, not a full meal. Or host a dessert and coffee party at 7 PM. Either way, you’ve just cut your food costs in half.
Pro tip: Avoid hosting on the actual holiday if you can. The weekend before is perfect — people are less stressed, and you might even catch sales on party supplies.
Entertainment Doesn’t Have to Cost Anything
Forget hiring a DJ or planning elaborate activities. Create a great Spotify playlist (free!), and people will entertain themselves. If you want to add something extra:
- White elephant gift exchange — set a $10-15 limit, super fun and builds in entertainment
- Holiday movie playing quietly in the background — creates ambiance
- Simple games like trivia or charades — costs nothing, brings people together
What You Can Skip Entirely
Let’s be real about what doesn’t matter:
❌ Matching everything — Nobody cares if your napkins match your plates
❌ Elaborate centerpieces — Keep it simple
❌ Party favors — Unless you really want to, skip them
❌ Professional-level food — Homemade and simple is totally fine
❌ New serving dishes — Use what you have or borrow
The Real Secret: Confidence
Here’s what I’ve learned after hosting parties on every budget imaginable: The host’s energy matters way more than how much you spent. If you’re stressed about money and frantically apologizing for things, your guests will feel uncomfortable. But if you’re relaxed, happy, and genuinely excited to have people over? They’ll have an amazing time no matter what you serve.
I’ve been to elaborate parties that felt stiff and weird, and I’ve been to simple gatherings with pizza and beer that became my favorite memories of the year. It’s never about the money.
My Real-Life Example
Last year, I hosted a holiday party for 12 people on a $120 budget. Here’s exactly what I spent:
- Food: $65 (I made chili, cornbread, a simple salad, and bought chips and dip)
- Drinks: $35 (one signature cocktail + basic beer and wine)
- Decorations: $10 (Dollar Tree napkins and a few candles)
- Total: $110
I came in under budget, people raved about the food, and someone told me it was “the best party of the season.” And you know what made it special? People felt comfortable and welcome. That’s it.
Your Action Plan
Here’s exactly what to do:
- Set your budget today — Write down your number
- Create your guest list — Keep it intimate
- Plan a potluck — Assign categories to guests
- Choose 2-3 simple dishes to make yourself — Nothing fancy
- Pick one signature drink — Or go BYOB
- Shop your home for decorations first — Then hit the dollar store if needed
- Make a playlist — Free entertainment sorted
- Breathe — You’ve got this!
The Bottom Line
Hosting a holiday party without overspending isn’t about being cheap or making your guests feel unwelcome. It’s about being smart, creative, and remembering what really matters — bringing people together.
You don’t need to compete with the Joneses or try to recreate some magazine-perfect fantasy. Your friends and family want to spend time with you, not judge your budget.
So go ahead, send those invites. Make your simple menu. Put on that playlist. And enjoy your party knowing that you’re going to start the new year without any regret-spending haunting you.
Because that? That’s the real gift.
Now it’s your turn: What’s your best money-saving party tip? Drop it in the comments — I’d love to hear what’s worked for you!