Can you save $500 in time for the holidays?

You've seen the green-and-red peeking out between the Halloween decorations and you're already starting to fret. There's a little over seven weeks before the December holidays, and you haven't saved a penny for gifts or entertaining.

If racking up more debt with your credit cards doesn't sound like much of a way to celebrate, the solution may be an austerity plan. For instance, if you slash $65 a week from your regular spending, you could have $500 to spend on the holidays.

Sound like a possibility?

Money management experts say such drastic measures are not the best way to plan for the holidays. "Do you want to go through the process of self-deprivation in order to make this work?" asked Bruce McClary, a financial educator and spokesman for Clearpoint Credit Counseling Solutions. It would be far easier to cut back the guest list for the holiday bash or find ways to give gifts that don't come from a store, he said.

However, experience working with people seeking credit counseling shows it's typically not that hard to find $65 or so of weekly fat in someone's budget. "There are many ways to trim costs in categories that provide immediate results," McClary said. But such efforts do require a behavioral, even a lifestyle change.

In other words, it won't be easy. But it can work. And you might be giving yourself a valuable gift in the process, since you'll start 2010 with two months of experience at more frugal living. That can prepare you to keep your New Year's resolution next year, and finally get your financial house in order.

This effort will only be effective with some planning, including a good, hard look at where your money is going now and a strategy that identifies ways to cut back. Here are some tips to get you started — use them as guidelines to adapt to your habits and circumstances if they aren't an exact match for you.

1. Assess the situation.

Do you prepare a monthly budget? The first step in any sort of cost control effort must be keeping track of spending. Using online banking or a free money management service, you can get a breakdown of how much you spend in different categories, which will give you a good idea of where to start looking for savings.

Budgeting counselors also advise their clients to keep track of each purchase, particularly in the early stages of money management efforts. One way to get started down that path might be to simply balance your checkbook — something of a dying art these days.

If you don't normally write down all your debit transactions and ATM withdrawals, consider this: Banks and credit unions stand to collect nearly $39 billion from overdraft fees alone this year, according to economic research firm Moebs Services.

Equally surprising, the Center for Responsible Lending says 44 percent of all overdrafts are caused by debit card transactions, not rubber checks. The FDIC found that 5 percent of consumer accounts pay 20 or more overdraft fees each year — or about three every eight weeks. If keeping track of your account saves you just two overdraft fees at $30 each, you'll save $60 without making any sacrifice but a little time.

Never get an overdraft charge? How about other fees? If you frequently use nonbank ATMs, or machines at banks other than your own, you could be spending an enormous amount on surcharges. You might even be paying twice for each withdrawal. At $4 a transaction, if you cut out just two visits to ATMs away from your bank each week, you'll save the same $60.

Total savings: $60.

2. Scour those statements.

Now take a close look at your monthly bills and credit card statements.

Do you often pay your bills late? Not only is that damaging your credit score, it's also costing you a fortune — up to $39 for a credit card, for instance.

You'll also want to make sure you're not paying unneeded services, like premium cable channels you rarely watch. Research firm Centris estimates the average monthly cable bill is $71. Cutting one or two premium channels or stepping down a service tier can save at least $15 per month. You may save another $20 by combining Internet and cable or phone service.

Taking a good look at other bills may save you more — like monthly fees to get bills mailed that would be free via e-mail — but just these three items would net $74.

Total savings so far: $134.

3. Easy on the entertainment.

Does your spending assessment show a good amount going toward a good time? This may be the area where the self-deprivation McClary mentioned starts to kick in.

Are you a movie buff? If you see one movie each week for $10 and spend another $6 at the snack counter, just cutting back to every other week until the holidays are over can put $64 in your piggy bank.

Like to go out to dinner on weekends? Let's say you typically spend $30 on a restaurant dinner each weekend. Persuade your friends to pitch in for a pot luck just one week instead and pocket that cash.

Total savings so far: $228.

4. Think before you drink.

There's the morning latte on the way to work, the vending machine soda to fight off the afternoon doldrums and the bottle of water at the gym. Individually, they may seem inexpensive, but they can add up quickly. If you're now spending $5 each workday on some combination of beverages, and you substitute low-cost (coffee made at home) or free (tap water) alternatives just half the time, you could save $82.50.

Total savings so far: $310.50

5. Be a frugal foodie.

You can't eliminate spending on food, but there are plenty of ways to cut your bill down.

The federal government estimates the average adult spends about $55 a week on food eaten at home. One of the easiest and most effective ways to pare this figure is simply by shopping with a list. You can cut even further if you "sop your pantry," and use what you've already bought in the next few weeks.

So before heading to the store, check your cupboards and freezer, and plan out meals using up what you have. Then stick to your list once you get there. Research shows it's easier to buy only what you intend if you shop alone and after you've eaten.

Another trick for keeping on budget: carry cash, and leave the back-up plastic at home.

There are myriad other ways to cut back grocery spending, from store club cards to clipping coupons to buying store brands instead of national labels. If you trim your grocery bill by just 10 percent by combining these methods, you'll save about $40 before the holidays — and potentially much more if you're shopping for a family.

Some researchers say about 14 percent of household food purchases end up in the trash. That's an awful lot of money to toss away. You can save twice if you bring leftovers to work for lunch the next day. If you normally spend just $5 each workday buying lunch, substituting leftovers can net a surprising $165 before the holidays.

Total savings: $515.50.

6. Spend it wisely.

Although you're aiming for a total savings of about $500 before the holidays, consider spending some of your stash before you reach your goal — but only on the gifts on your list. Waiting until the last minute may result in disappointment if selection is thin, and you might end up spending more than you plan on substitute items.

To stay on budget, take the time to compare prices online, and consider using coupon sites and social networking to find discounts that can stretch your dollars further.