How To Start Saving Money for Christmas

If you think it’s too early to start saving money for Christmas, you are wrong. Ideally, you should start saving money on December 26th, but obviously, that’s not exactly practical for most people. 

So, if you are like most people, then now is the time to start saving and planning.

The best way to handle large expenses like Christmas is to have enough money saved so that you can cash flow the entire expense and not go into debt. So, how do you start saving money for Christmas?

There are three steps to do your best to get through Christmas debt-free:

1. Assess your Situation
2. Make a plan
3. Carry it through

Like all things we do in life, you need to see what the situation is, then you make a plan based on the information you have, and then you have to actually carry through the plan.

Assess Your Situation

Sit down and figure out exactly what your situation is. The best way to do this is to sit down and start making lists. If you have a partner, then do this with them. Make a list of every single expense you can think of that relates to Christmas. This will vary greatly based on your family situation, religious observance, and personal preference.

Make a list of all the people you want to give gifts to, all the tips you might be expected to give, all the decorations you will want to buy, all the food you will need to buy, all the traditions you carry out that might cost money (ice skating, shopping, etc.), and any travel expenses you might have. I’m sure there are many others that may apply to you or your family. Do your best to figure out where these expenses are and approximately how much it will cost you. Of course, unexpected things will probably come up, and that’s okay!

Make a Plan

After you make a list, you need to figure out how much money you have and how much money you will need. 

First, calculate how much money you have. This should be fairly easy. If you have any savings that you have already saved for Christmas, then now is the time to calculate how much you have saved and how much of it you want to spend. Now comes the hard part: figuring out how much you want/need to spend. Remember that list you made before? Start by writing a dollar amount next to each item on the list. Some things are flat amounts- you know how much they will cost. Some things are discretionary. Gifts depend on how much you want to spend.

Now is the time to make some decisions—do you want to spend a lot or a little? Is this the year that you are cutting down, or are you splurging? This should depend on how much money you have saved and how much you reasonably can make or save before Christmas. It can also depend on how creative you can be with your gifts, decor, and travel. There are some great ways to save money on gifts that you can see if they work for your plan.

When making this plan, decide how much money you will need to carry it out. Remember that things rarely go exactly according to plan, so plan to have some extra money for those “just in case” moments.

Now, you have to figure out how you will close the gap between what you have and what you need.

Can you just save some extra money from your regular paycheck by moving some money to a special “envelope”? Do you need to cut down on your regular expenses to put some extra money away? Do you need to make extra money so you have some money to put into your savings?  

Carry It Through

Now is the time for you to start carrying through with your plan!

If you need to start cutting expenses- then do it now.

There Are Some Quick Ways To Cut Expenses:

1. Cut out some subscriptions
2. Clip coupons
3. Get signed up for cashback sites
4. Institute the 24-hour rule

Read more ways here: 30+ Best Frugal Living Tips To Help You Save Money Now 

You Can Also Start Making Extra Money:

1. You can start doing some surveys in your free time
2. You can do some extra yardwork
3. You can do some extra work online

Read more ways here: How To Make Extra Money: 27 Ways To Get More Cash

 

No matter which way you choose, make sure to keep track of exactly where all this “extra money” is going. You can use the Holiday Savings Tracker here to make this work and keep you motivated and on the right path.

Download the Holiday Savings Tracker now!

If you are planning on DIYing your Christmas, you should start working on it now. If it’s not last minute, you’ll be more likely to actually follow through on your plans. Make this work for you by starting as soon as possible.

 

Enjoy!