You know how Christmas decorations are on the sales floor before Halloween has even taken place?

Well, the holiday on calendar has a way of creeping up before we know it, too. Christmas is officially less than 6 months away! Preparing for a debt-free holiday needs to start now.

I am shocked to realize, that I could count on one hand, how many months there are until Christmas.

With 3 big traditional holidays celebrated so close together it can put one in a slight panic mode with the budget. Fortunately, there is still time to get a good start on a debt-free holiday by starting a holiday gift list.

Table of Contents

• What is a Holiday Gift List
• Identify Recipients
• Set a Budget & Start a Sinking Fund
• Note Gift Ideas
• Track Purchases
• In Closing

What is a Holiday Gift List

A holiday gift list allows you to be both intentional with gift giving and your money. It gives you time to think of thoughtful gifts for the recipient and not panic buy last minute. So get out your notebook or print out the free printables below. Here are the steps to embracing the holiday gift list for a debt-free Christmas:

Identify Recipients

Begin by listing out all the people you intend to buy gifts for. This includes family members, friends, and anyone else you plan to give a gift to during the holidays.

I always find it starts out as one giant list that is too large for my budget. So I will put the list away in a drawer. Then pull it out, in a day or two, to review what I have written. I find I have a better sense of who I want to buy a gift for versus who is getting a delicious plate of baked goods.

Tip: when it comes to a large group of people, using a gift exchange site like Elfster helps to keep the budget in check. Then there is only one gift to buy. If you need to buy more than one gift, say for coworkers, Bath & Body Works soaps make a great gift.

Set a Budget & Start a Sinking Fund

Key metrics from the Exploding Topics website, finds that most American’s spend $1,000 on Christmas each year. It’s not easy to come up with that amount last minute. Since we are starting our holiday gift list months in advance, we are getting a solid head start with the budget. Go, YOU!

If you get paid bi-weekly, minus one month before Christmas… we are looking at approximately 12 more paychecks needed to meet our goal. Equals approximately $84 saved per paycheck. Does that work for you?

If it doesn’t work, then keep re-working your list and the budget, pick up a side hustle or start listing things on FBMP.

Are you subscribed to The Sandwich by Frugal to FI newsletter? Today’s ezine featured the steps to setting up a sinking fund to prepare for big purchases like the holidays. You can find it here.

Note Gift Ideas

Next to each person’s name, jot down potential gift ideas based on their interests, hobbies, or needs. The time and effort of this step will result in a thoughtful and fitting gift for each person.

When November comes, you will be ready to do some debt-free holiday shopping. Guilt free spending because you prepared for this event. I’m so proud of YOU!

Tip: Leave the credit card at home when you go shopping. The bedazzling lights, holiday music and delightful scents can lead to a frenzy of overspending. It’s a science.

Track Purchases

As you buy or make gifts, mark them off your list to keep track of what you’ve already purchased and what still needs to be bought. This prevents oversights and last-minute rushes.

These steps can help streamline your holiday gift-giving process and make it more organized and enjoyable.

In Closing

“But I want to buy all the things!” I get it. I wasn’t always a good steward with my money. A budget can feel restrictive during the holidays. But you are doing your future self a BIG favor. Most people don’t even remember 6 months later what you bought them.

Trust me. Not paying off debt after the holidays is going to feel so much better. I noticed that I started to get cozy with traveling in the new year following because I didn’t owe money to payback for holiday spending.

Get comfortable with being uncomfortable. Live within your means.

Budget tips seen in this post:

• Gift giving a plate of baked treats
• Using a gift exchange site for a group or large family setting
• Filling in gift giving with a trendy, but inexpensive gift of holiday foaming hand soaps from Bath & Body Works
• Leave the credit card at home.

P.S. It’s no secret that I sometimes prefer the plate of treats more a physical gift.

Image by Matthias Cooper