PORTLAND, Ore. -- In the current economic slump, the idea of buying Christmas presents may seem like a stretch, but money experts shared some tips on how to save $1000 by Christmas, to spend on gifts or whatever else you set as a priority.

The first step is to plan ahead.

“You should draw up a budget. You plan who you are going to buy gifts for, have a gift exchange within your family,” said.

And now for the money-saving part; according to Kiplinger.com, the first step in cutting down on spending involves making one trip a week to the grocery store – and sticking to it.

Madeline McKee is one Portland resident making changes.

“With food, we have a calendar and I know what we are eating, kind of every night. Monday, it’s Mexican, Wednesday its soup night. I'm able to budget better rather than impulse shopping,” she explained.

Just by cutting impulse shopping, McKee said she’s managed to save about $160 over the course of two months.

Next, take a good look at that latte, that soda and the magazines you purchase every week. Are they really necessary? One simple change is to read magazines online for free instead.

"The average smoker spends 14-hundred dollars a year on cigarettes. That's money you are flushing down the drain," said state health officer Dr. Mel Kohn.

Also, but cutting out addictions like coffee, soda and cigarettes, your wallet will get fatter.

“I added up how much i spent on cigarettes and it’s like $2,000,” said Brandon Breazeale, a smoker.

In this example, cutting back on caffeine saved about $200.

But don’t go “cold turkey,” the experts say. Instead, cut back each week and slowly wean yourself of the non-essential treats.

“We're not buying as much takeout food or expensive food from pricey delis,” said Margaret Krausse.

And that saved her family about $120 over the past two months.

The next place to investigate is the use of your thermostat. Experts say for every degree that you lower your thermostat, you can save five-percent off your heating bill.

This could potentially drop your bill by about $30 a month, or $60 over this two-month period.

Another household item to reconsider; your cable bill. Do you really need that full package? Dropping premium channels can save you about $30 over a two-month period.

And on your phone, cutting out the caller ID service and Internet service can save you $100 over two months.

Another thing you can do to save money is adjust how much you take out, on your tax forms. The average tax refund is $2,700. That’s money you actually overspent. So why not give yourself some of the pie instead? Just go to Human Resources and file a new W-4.

That can save you $450 over the course of two months.

This brings our grand total to a savings of $1,090 by Christmas.

The average American spent $859 on Christmas presents last year. Experts expect a 15-percent drop this year.

(KGW reporter Anne Yeagher also contributed to this article.)