The holidays have a way of sneaking up on us. One minute it’s pumpkin spice season, and the next you’re wondering how your Christmas budget disappeared faster than the last cookie on the plate. It’s easy to get caught up in the spirit of giving, but come January, those credit card bills can put a damper on your financial goals for the new year.
The good news? With a little planning and a few smart strategies, you can enjoy the holidays and protect your financial peace. Here are some practical, real-world ways to save before Christmas so you can celebrate without the post-holiday stress.
Start Early and Save a Little at a Time
If you can start setting money aside months in advance, even small amounts will make a difference. Saving $10–$20 a month may not sound like much, but over the course of the year, it adds up to a nice cushion for gift-giving and holiday expenses. If you’re getting a later start, increase that amount to $50 or $100 per paycheck. The key is consistency.
Many banks now offer “round-up” features that automatically deposit spare change into your savings account every time you make a purchase. You’ll barely notice the difference until you check your balance and see how those pennies have quietly piled up. You can also set up automatic savings parameters, like moving $25 into your savings account every time a deposit over $200 hits your checking account.
It’s the same philosophy we talk about in Building Wealth the Right Way: Ignoring the Noise, Focusing on the Plan — small, consistent habits have a big impact over time.
Be Intentional with Spending
Before you start shopping, create a realistic budget and assign a spending limit for each person. Maybe your kids are at the top of the list, but you’ll spend less on nieces, nephews, or coworkers. Knowing what you plan to spend before you start swiping your card helps prevent impulse purchases.
Whenever possible, use cash instead of credit cards. Physically handing over cash helps you stay aware of your spending and you’ll thank yourself in January when there’s no surprise bill waiting for you.
Get Creative with Your Gifts
The most meaningful gifts don’t always come from the store. Consider handmade presents — maybe you bake cookies, craft ornaments, or create photo albums with your kids. Experiences can also make wonderful gifts: tickets to a concert, a local class, or a family outing to see Christmas lights can create memories that last longer than material items.
And if you are shopping, take advantage of rebate apps like Rakuten, which offer cash back for online and in-store purchases. You can even stack those savings by using coupon or rebate apps that give you additional money back when you upload receipts.
Keep Your Financial Peace
Remember, financial success isn’t about deprivation; it’s about making intentional choices. If you’re looking to take greater control over your money, consider programs like Financial Peace University: Take Control of Your Money Once and For All for practical guidance on budgeting and debt management.
And if you’re in a giving spirit this holiday season, check out our blog 5 Ways to Maximize Your Holiday Donations to make your charitable dollars go further.
The holidays should be about joy, not financial anxiety. With a little planning and discipline, you can give generously, celebrate fully, and start the new year on solid financial footing — without that January credit card hangover.
By Chris Perry, Wealth Advisor