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An engagement party is an important event for any bride-to-be and as her best friend, it becomes your duty to not only throw her one but to make sure that the party would be one memorable event. If you are in a tough financial situation, there is no need to settle on paper plates and plastic utensils. Fortunately for you, there are a lot of ways to throw an unforgettable party on a budget. Make sure that you read the engagement party on a budget tips listed below so you do not end up hurting your own bank account.1. Inform the couple- First of all, avoid making this a surprise party. Since you are on a tight budget, it would be best to let the bride and groom in on your plans and to ask them for their own input. This should also be the time to explain to them that you have checked your credit report and your finances only allowed you to allot a certain budget for the party. Find out what kind of party they want to have and the important events or items they want in it so that you know the areas you need to spend on. Besides, you wouldn’t want to spend on an unlimited bar if what they wanted all along was just a simple lunch with family and friends2. Price it out- When planning the party, aside from making a list of the items that you will need, also include their corresponding prices. Make sure to include everything from tables and chairs to alcohol to food to decorations. Listing the prices down will allow you to figure out what’s important, what the party can do without and what you cannot completely afford. It would also help if you look for items you can use that you, your family or your friends have.Table and chair rentals often make up the majority of the expenses, but, if you manage to borrow a few, you will still end up saving money. Anything and everything you can borrow will save you money. However, if you still end up renting, then try your best to negotiate and ask for a discount by promising to continue using the company’s service. Because of the tough times, chances are high that a company will offer you a good deal, but if not, it’s okay. There is no harm in trying.1. Avoid an open bar- Reserving a place and renting out tables and chairs are already expensive enough and you will surely damage your bank account if you decide to pay a bartender and an open bar. Alcohol is very expensive and when guests start to have fun and order endless glasses of drinks, then there is no doubt that you will pour your money down the drain. To avoid this from happening, what you can do is to buy cheap liquor and create the drinks yourself. Just search for the recipes of cocktail mixes and buy the ingredients which have the cheapest prices. If you still cannot afford to buy bottles for your guests, then just make sure to have enough drinks to serve the happy couple.2. Serve appetizers- Another area that usually takes a huge chunk of your budget is food. To lower your food expenses, the most effective thing to do is to avoid serving main courses. Plan the party for the afternoon, which is after lunch but before dinner and serve several inexpensive appetizers or set the party later in the evening after dinner so you can host a dessert party which is classy and inexpensive at the same time. Just be sure that you inform your guests about the party’s menu so they do not arrive hungry and grumpy.3. Avoid over-the-top decorations- Keep your party classy by avoiding the use of loud party banners, colorful balloons, napkins and other disposable goods. Not only are they items that an engagement party can do without but they are also wasteful and expensive. Make use of simple yet striking decorative pieces such as single-stem bud vases on each table or floating candles to make the mood of the party romantic which is perfect for the engaged couple.Just because you are on a budget doesn’t mean that you should pass up on hosting your friend’s engagement party or that you should plan a mediocre party. With the numerous respectable, cost-effective ways to plan one, you can rest assure that you will be able to plan an engagement party that the guests and most importantly, the couple will surely never forget.Amy is an active blogger who is fond of sharing interesting finance management tips to encourage people to manage their personal finances. More specifically, she advocates that people should check credit scores regularly. Follow Joy and discover more on wedding planning on budget.