How to Start Saving for Christmas This Year

You didn’t misread the title, I’m well aware of what month it is. This post is all about How to Start Saving for Christmas This Year because to be honest, the earlier the better.

Did you know, 63% of Americans are living paycheck to paycheck? According to CNBC nearly half of them are making over 6 figures.

Now, there isn’t anything wrong with spending money. This life is expensive. We are all trying to live as comfortably as we can. Especially while we have the time, energy, and youthfulness.

If this is your year, the year you break some of those old habits, Christmas is a great place to start because that’s when most people overspend.

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How to Start Saving for Christmas This Year

I come from a family of givers. My parents get excited to scour stores, websites, and other retail outlets to find gifts starting in early October. However, you might be on a strict budget this year and feel anxious about how much others are spending on you vs what you can spend on them.

This is a very common stressor during the holiday season and it’s understandable! Especially when you have your own bills, debt, and financial insecurities to worry about.

I cannot stress this enough… when you pick a dollar amount to spend, stick to it.

Figure out how much you need to save

This one is super simple and I find that creating an excel doc or keeping a list in your planner is very helpful for this step.

Write everyone’s name down and then put a dollar amount next to them. After, carefully review your list and ensure you don’t forget anyone.

Here are three categories I find helpful:

Priorities

Immediate family
Close friends

Kindness

Extended Family
Friends
Neighbors
Teachers, coaches, tutors, etc.
Housekeepers
Maintenance
Landlords/tenants

Charitable

Local charities
Churches
Toys for tots

Do the math

Next, write down how much you would like to spend on each person. I write this number in a second column next to their name.

Then add it all up.

Did you just get anxious? Is that number higher than you thought it would be? I know, it adds up so fast.

Make cuts

Now comes the hard part, start cutting people off the list. That’s right. It’s for your own good.

Decide when to start saving

You can start saving for Christmas any time throughout the year but I recommend starting in January because this gives you more time to save.

Setting money aside

Personally, I take an allotted amount of money out of my bi-weekly paycheck and track it in my planner. This way I can keep track of the amount throughout the year, and I won’t accidentally spend it.

The envelop method

This is as easy as going to the ATM every payday and putting cash in an envelope. Everyone has a different method but consider where holding your money is the safest and least likely place for you to spend it.

For many people, holding physical cash in their hands is enough not to spend it.

A HIY account

Another method is to open a high-interest yield account specifically for gifts. This is considered a sinking fund (an account drained annually or on a set date). Many standard savings accounts have “buckets” which can separate your money into designated funds in your already-built account.

Either is a great idea however the HIY account will earn you higher interest rates every month.

Go-To Easy Christmas Cookie Gift Recipes

Get creative

If you’re still struggling with how much the holidays are going to cost you, get creative. Instead of buying gifts for every person on your list, consider some ideas below:

make cookies, bagels, or specialty goods
DIY candles
thrifted gifts
buy deals throughout the year
send Christmas cards instead

Be kind to yourself

Listen, life is hard. Emergencies happen and there is no such thing as a perfect person. Sometimes we need to borrow money from other accounts or need to start penny-pinching. Please hear me when I say it’s okay.

Your friends and family will understand hardship. If they don’t, you deserve better.

You are amazing for even considering gift-giving during the holidays.

Thanks for reading How to Start Saving for Christmas This Year, my darlings! I’d love to know how you’re planning to save for the holidays and how you’re planning to get creative. Feel free to leave a comment below!