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Believe it or not, it's time again for that annual ritual: Stressing about money for the holidays. The season of presents will be here before you know it! Even in this economy, it's not too late to make a plan that'll have everyone on your gift list smiling.

Wendy Gomez says her daughter is just at that age where she connects the holidays with big gifts--but not this year. "That's just not what it's going to be this year simply because it can't be," Wendy admits.

Wendy is a laid off lawyer launching her own company. She still wants to do what she can for Christmas. Certified Financial Planner Patti Brennan says there is time to gather funds for festivities, but you've got to be honest with yourself about what you can afford, and what you can do to achieve your goals. She explains a good rule of thumb: "When it comes to the holidays, limit your spending to 1.5% of your pretax annual income. So, for a family earning $50,000 a year, that would give them $750 allocated for the holidays."

Obviously, it's easier if you start at the beginning of the year. If you're just getting started, adjust the goal if necessary. Cut down on obvious discretionary spending, like eating out. Then make a game-plan and stick to it.

"The best method to do that is to set up a register, a holiday register and literally it's as easy as four to five columns and say ok, 'this is the person I want to buy for, this is the item, this is my budget,'" Brennan explains.

That will help you avoid overspending or shopping at the last minute, If you are buying, consider a gift that keeps on giving-- like a bond, IRA, or a mutual fund. "A lot of mutual fund companies require only a $25 amount to get it going, and it really is sending the message you care about that person not just today but forever," Brennan says.

And remember, whatever amount your family reserves has to cover everything.

"It's the tree. It's the wrapping paper. It's the decorations. It's the dinners. It's the outfits," Brennan explains.

Wendy is planning to trim her tree with what she has, and knows that will be more fun than trimming her budget. She's staying positive.

"It'll be more about what the holiday should mean in terms of family and getting together and showing your love and appreciation for what you do have," Wendy says.

Of course, some of the best presents are free. For example, you can give a coupon for the gift of your time to help clean a house or cook.

Another warning: Don't rely on plastic to pay your way through the holidays. Odds are your family and friends wouldn't be happy to know you went into debt for their gift.