When you're on your way to a frugal debt free life you will face some obstacles. But the one thing that a lot of people struggle with is saying no to social situations.

I personally do not struggle with this. It doesn't bother me to tell people why I am not participating in something.

The words: "we are trying to save money" just don't make me feel embarrassed or awkward. But I understand why not everyone feels the same way I do.

So I wanted to share with you a few ways to avoid those embarrassing situations.

1. Turn NO into INSTEAD.

If a friend asks you to go to dinner instead suggest your house or a mutual location for a potluck of BBQ. Everyone can bring a meat or a side dish and share the costs.

If a friend asks you to go to a movie instead suggest you rent a movie you've been dying to see from the Redbox and make a pizza.

2. Find new ways to celebrate.

Birthday parties and other celebrations can be tough when you're on your way to living debt free.

If your child is invited to a party ask some other families if they want to split the cost of a larger gift. This might be more economical for everyone. Or consider a gift of some books or art supplies.

I don't know about you, but it seemed for a while there everyone I knew was having a baby. All at the same time... oh and I was pregnant too, so there was a tight budget.

But, I know as a mom if someone offered me a casserole or dinner or to come clean my house after the baby was born, that would have been the best gift ever. And far more economical than most gifts.

Here are 7 ideas for frugal or free baby shower gifts.