Christmas decorations are already up in some stores.

It's a reminder that now is the time to implement a holiday shopping strategy.

Start with a budget, even write down each item you plan to buy and stick to the plan.

"Those impulse purchases drive up costs outside the budget and they often go on the credit card then you have gloom and doom in January," said Curt Davis of Davis Financial Management.

You can increase your holiday budget by cutting back on expenses now.

Eating in instead of dining out can save you at least fifty bucks a week.

Take advantage of recession deals in stores.

Sears is now offering a new Christmas club card.

Consider it a shopping 401k, the store matches some of the money you sock away.

"They're going to already have cash saved on here rather than a credit card and we're going to give three percent reward back for balance on the card," said Michael Peck, Sears General Manager.

Pelagia Jose of San Francisco signed up.

She considers it free money.

"I have a big family. I have to give them all presents, it's very handy," said Jose.

The card can also be used at Kmart and Lands End.

Layaway plans help you avoid costly credit card interest payments.

Websites like cybermonday.com also offer specials and coupons from dozens of stores, and will alert you about holiday specials.

Another way to save money is to take a new approach to giving.

"I think a great concept is drawing names and so you have just one person in the family to spend your money on and you just buy one item," said Curt Davis.

And don't forget, often homemade gifts cost the least and mean the most.