9 Easy Ways to Budget for Christmas

The holidays are right around the corner. The stores are already filled with every decoration possible. There are already early Black Friday sales online.

Do you overspend every year? Do you end up with credit card debt in January? You need easy ways to budget for Christmas.

Some people think Christmas is just buying gifts. It is so much more than gifts. People tend to spend money on lots of different things for the holiday:

• Gifts
• Charity
• Decorations
• Christmas Dinner
• Eating Out
• Baking Supplies
• Christmas Clothing

I am going to go over easy ways to budget for Christmas. You don’t have to sacrifice anything. You just need to be willing to make a plan and stick with it.

If you don’t already know, you need a budget. First, you need to have a household budget. I really like the 50/30/20 Budge Rule. This is one of the best ways to keep track of your regular monthly spending.

In this monthly budget, you should have set up a sinking fund. A sinking fund should include your budget for Christmas spending.

You don’t have to sacrifice your holiday plans. You need to have a plan that works for you. Take some time to look at what you did last year. Did you go to several parties? Did you give to charity? Did you cook a large Christmas Dinner? Who did you buy gifts for?

All these questions are going to help you with making a plan for the holidays…and help keep you accountable.

Make a Budget

Making a budget for Christmas is the very first step in getting ready for the holidays. Knowing how much you can spend will help you set up your expenses. Hopefully, you have been saving all year. You do not want to start a new year with credit card debt.

A good rule of thumb for holiday spending is no more than 1% of your yearly income. If your family brings in $100,000 a year, then you should only be spending $1000 on holiday spending.

If you have not saved enough, try and make some cuts to your budget.

Make a List

The next step in making a budget for Christmas is by making a list. First, you will want to make a list of all the people that you would like to buy gifts for.

Be sure to prioritize this list. Setting a priority list can help you recognize which gifts have to be bought and which gifts you could cut.

You want to set an amount for each recipient. If you find that your budget is not going to make it….make some cuts.

Ways to make cuts could be doing a secret Santa. That way you will only be buying for one person in your family or your office. This has always been fun with my family. This is a great way to save money…..for everyone.

Get Creative

Another way to budget for Christmas is to get creative. This could mean that you make homemade gifts. I personally love to bake, so giving away baked goods and candies is always part of my gift-giving.

Every year I give out Christmas tins full of a variety of goodies. I can guarantee you that people will remember your homemade items…and ask about them every Christmas.

Another way to give gifts is by offering services. If you are short on cash, offer a night of babysitting to a sibling or friend.

It’s not always about the money, it’s about the thought.

Track Spending

The only way to budget for Christmas is to track your spending. Be sure to WRITE DOWN everything that you spend. Don’t wait for the credit cards to creep in in January.

You should already have written down your budget. When you buy a gift for someone, be sure to mark them off the list and deduct how much you spent.

Tracking your spending is the only way to hold yourself accountable.

Use Cash

If you don’t think that you can be accountable, then use cash only. Set aside your budget for Christmas in a cash envelope. Use this when buying all your gifts.

This will guarantee that you do not have any credit card debt in January. This works well for a lot of people.

Some people use a cash envelope system for their monthly budgeting. This is a great way to be fully accountable.

Recycle Holiday Clothes

Holiday clothes can cost a ton of money. There is no reason to buy new clothes every Christmas for parties. Wear the ones you wore last year. You can just switch up the occasion.

No one will ever remember what you wore to a party last year. I guarantee it. I can barely remember what I wore to a party last year.

Don’t Compare

Another thing to remember about ways to budget for Christmas is to not compare yourself to others.

You have no idea how much debt people go into for Christmas. Don’t be that person.

Stop worrying about all the social media posts. Not everyone can afford brand-new cars and vacations for Christmas. And by the way, most people who buy these gifts can’t afford them either.

Recycle Decorations

I feel like this is a no-brainer, but recycle your decorations. A very easy way to budget for Christmas is by reusing your decorations.

I am always shocked by the people that change their decorations every year. I make sure to pack and store all my decorations well. I reuse the same decorations every year. I may add a new color ribbon to my tree or wreaths, but I reuse all my decorations every year.

If you are starting to buy decorations, I recommend buying a quality tree and wreath. Something that will last for years.

When it comes to all the other decorations, I recommend buying budget-friendly items. I recommend investing in good, quality storage for your decorations. This way you will be sure to recycle your decorations year after year.

Buy After Christmas

You might think this is a strange way to budget for Christmas…but I think it’s smart.

When everything is deeply discounted after Christmas, I buy what I need for next year. This can include:

• Decorations
• Gift Wrap
• Holiday Clothes
• Gifts
• Holiday Cards

This way when the holidays come around next year, I am prepared for almost everything….at a huge discount.

The holidays should be a joyous time of year. You don’t want to stress yourself out. Being prepared is the best way to keep the stress level down. Find ways to manage your stress.

I have found that walking is one of the best ways to relieve stress. Find what works for you. Enjoy the season.

People don’t expect you to go into debt for the holidays. Always remember….