The holiday season is often called the most wonderful time of the year, but for many, it’s also the most financially stressful. Between gift-giving, gatherings, and festive expenses, December can quickly derail your budget. I realized that cramming all my holiday spending into one month wasn’t sustainable. That’s why I began planning for the holidays as early as October—and sometimes even sooner! Early preparation not only helps me stay organized but also keeps my budget in check and reduces stress. This eight-step strategy allows me to spread out the cost of gifts, snag great deals, and avoid the last-minute shopping frenzy.
Holiday Prep on a Budget: 8 Easy Tips to Get Ahead
Create a Gift List. The first step in my early holiday planning is to create a detailed gift list. I write down everyone I plan to give gifts to, from family and close friends to colleagues and neighbors. Then, I brainstorm ideas for each person, making sure to keep in mind their hobbies, interests, and any hints they may have dropped throughout the year. This helps me stay organized and avoid impulse purchases.
Having this list early gives me the time to think about thoughtful gifts that I know people will appreciate, rather than rushing through it in December. It also helps me plan out my spending more strategically.
Set a Holiday Budget. Once I’ve created my gift list, I establish a holiday budget. I assign a specific dollar amount to each person, making sure to keep my overall spending in check. Planning my budget this way helps me see the big picture of my holiday expenses and avoid going into debt just to give gifts.
It’s important to keep the budget realistic. I don’t pressure myself to spend more than I’m comfortable with. In some cases, I’ll set aside money for events like holiday parties, decorations, or food, but gifts usually take up the majority of my budget.
Start Shopping Early and Look for Sales. One of the best things about starting holiday shopping in October is that I can take advantage of sales before the rush. I track down deals on gifts through sales like Black Friday, Cyber Monday, and other seasonal promotions. Some stores even offer discounts as early as October, so I’m always on the lookout for sales notifications and discount codes.
Shopping early also helps me avoid the stress of supply shortages that often happen closer to the holidays, giving me more time to find the perfect gifts at the best prices.
Redeem Points for Gift Cards. If you’re like me and regularly use credit cards that offer rewards points, redeeming those points for gift cards is a great way to stretch your holiday budget. Throughout the year, I accumulate points and strategically redeem them in October or November for gift cards to stores I know my family loves.
Redeeming gift cards has saved me hundreds of dollars in holiday spending, and it’s a simple way to maximize rewards that you’ve earned over the year. It also feels like getting a little extra help when the holiday expenses start piling up.
Plan for DIY Gifts. I’m a big fan of homemade gifts, and planning early gives me the time I need to put together something special. Whether it’s making a batch of cookies, knitting a scarf, or creating a photo album, DIY gifts not only save money, but they also add a personal touch that many store-bought gifts don’t have.
If I know I’m making DIY gifts, I plan in advance to buy the materials I need during sales or with coupons. Plus, starting in October gives me time to complete each project without feeling rushed.
Track Your Spending. It’s easy to go overboard when you’re shopping for the people you love, which is why I keep track of everything I purchase. I check in with my budget regularly to ensure I’m sticking to it. I use apps or spreadsheets to monitor my expenses and make sure I’m not overindulging.
By staying organized and keeping track of my spending, I’m able to stay in control of my finances and avoid the dreaded January credit card bill.
Be Prepared to be Flexible. From an unexpected house guest, a last minute party invite, or even the forgotten gift on your list, be prepared to be flexible. In my family, I’ve learned that some people enjoy ‘group gifting’ a few days before Christmas (yes… literally like 2 or 3 days before). While in the past I worked extra hard to be prepared for these gifts, I no longer fight it and instead, budget and set aside a few dollars for those last minute online gifts. Being flexible ensures that I’m saving money and time by not buying extra gifts.
Stick to the Plan. Finally, sticking to the plan is key. There are always tempting last-minute sales or “perfect” gifts that can throw you off track, but keeping my budget and gift list in mind helps me avoid overspending.
Planning for the holidays in October has saved me from a lot of financial headaches. By spreading out my spending over several months and taking advantage of deals, I’m able to stay within my budget while giving meaningful gifts. If you’re tired of feeling stressed about holiday shopping, I highly recommend getting a head start this year! Not only will your wallet thank you, but you’ll be able to enjoy the holiday season without the added financial pressure.