How to Throw a Party Without Going Broke

Set a budget. List potential expenses such as invitations, decorations, entertainment, food and drink. If you're not sure how much each item will cost, look online for estimated pricing.

*Prioritize where you'd like to spend most of your money.

*Choose a venue.

Create your guest list. Although your budget may dictate the size of your party, there are ways to cut costs so you can entertain more people.

*Save money with email invitations.

Plan your entertainment. Make sure your guests have fun at your party. Use a digital music service such as Pandora to choose holiday-themed playlists, or create a music list with a digital service like Spotify.

Plan your menu. Whether you're having your party catered, making everything yourself, or having a potluck, it helps to plan your menu.

*If you're having the party catered, hire a caterer as soon as possible, since the holiday season is the busiest time of the year.

*If you're cooking the meal yourself, scour the internet and your favorite cookbooks and magazines for recipes.

*If you're planning a potluck, supply the main dish and ask your guests to bring their favorite dish to share.

*Save money on drinks by creating a signature drink to serve, such as eggnog or a seasonal cocktail.

Decorate. Holiday decorations don't have to break the bank. Reuse old decorations to save money or borrow décor from family and friends.

Save money by co-hosting with someone else, such as a sibling, a friend, or a neighbor. This allows you to share the planning and the budget.