It’s October, which means the holiday season is right around the corner! Presents, feasting, stocking stuffers, travel, tinsel and so. much. wrapping. paper!

The holidays come with multiple celebrations and costs that can add up quickly! One of the best ways to financially prepare for the holidays is to create a holiday budget. Don’t wait until December to prep your budget, you might feel like coal is your only option. 🙂

Skip the coal! The sooner you put a plan in place for your spending, the better off your wallet will be come January. Today, I’m sharing 6 tips for creating a holiday budget that’ll help you feel ready for the season ahead!

6 Tips For Creating A Holiday Budget

1. What do you already have saved?

Do you already have a sinking fund and savings in place for your holiday spending? If so, way to go!

If not, consider starting a sinking fund for next year’s holiday season. Whether you have the year-round holiday shopping fund or not, take some time to think about what you already have saved for holiday spending.

It doesn’t have to be much, but knowing you already have something saved for the holidays makes you feel so much better than starting from scratch.

If you don’t have anything saved, no worries—we’ll just have to make it a priority moving forward.

2. List out the people on your nice list this year

Next, create a list of everyone you need to buy for this year. Spouse, kids, friends, in-laws, teachers.. etc! It helps to get it all down on paper to see what you are working with.

Once you have that list, trim it down! Is there anyone you can cut out? Have a conversation with family about possibly drawing names instead of buying for everyone. Instead of getting a gift for each of your friends, plan a get together for tacos and margaritas! Time together is worth so much more than material items.

Keep your bank account on track this year by keeping your list small(ish). Try out my Christmas Present Planner to help!

3. Brainstorm gift ideas and costs

Once you know who you’re getting gifts for, write out a couple of things you can buy or make for each person.

If you have true skills to paint, cook, knit, or building something people will actually love, then crafty this holiday season! I personally make an amazing homemade taco seasoning, which I plan to make and giveaway as gifts this year!

Supplies still cost cash though, so plan out how much you’ll need to spend on those or on the book, mug, family photo session, or whatever else you’re gifting each person. Then write down the ideas and estimated costs.

Side note: Even if you don’t exchange gifts for the holidays, consider using your Christmas savings to give to others. You can buy toys for foster children or a turkey for a family in need. Or find ways to spread Holiday cheer without spending a dime—like volunteering at a food bank or donating your gently used items.

4. Add up all the planned amounts

After you’ve made your list and checked it twice, it’s time to total up all the gift costs. This will be your Holiday savings goal. Don’t forget to budget for extra shipping if you’re not planning on traveling this year.

Remember, the best way to keep debt from wrecking your halls this year is to stick to this goal. When you’ve got a plan, you’re less likely to overspend come December.

5. Start saving

Now that you have your goal in mind, it’s time do some math. Divide your total savings goal by the number of months left until Christmas. This is how much you’ll need to save each month! Place that cash into an envelope or online savings account.

Where do you get that Christmas cash? Well, the quickest ways are to cut back your spending in other areas, pick up a holiday side hustle, or extra hours at work, or sell something. There are so many different ideas out there to bring in extra cash. Plus, starting early spreads out the work too!

Remember, the extra effort now means when Christmas bells are ringing, you can truly enjoy them knowing you didn’t underplan or overspend.

6. Remember: Even Santa lives on a holiday budget!

If you do the math and the total you have to save seem impossible, tweak some things! The only way Santa’s able to give gifts to every child in the world is by being budget-minded. We should follow suit.

Don’t feel like you have to prove anything to anyone with how much you spend on the holidays. Seriously. That’s not what Christmas is supposed to be about. Just ask the end-of-movie version of George Bailey, Ebenezer Scrooge or the Grinch.

Christmas is about valuing each other, not stuff. This year, make your gift giving about celebrating the joy of the person, the season and togetherness.

Okay, that’s it! Start prepping with my Christmas Present Planner, get your budget ready, and let the holly jolly savings begin!