If December rolls around and you find yourself scrambling to save money for Christmas presents, this post is for you.
A girl I know found out that my birthday is the day before Christmas and the conversation went a little like this:
“Your birthday is on Christmas Eve?! EVERY YEAR?!”
We all had a good laugh at the momentary lapse in logic but in reality, many have that same reaction to the holiday season.
Somehow, your bank account did not get the memo that Christmas comes in December every year.
It’s okay, we’ve all been there.
If you didn’t start saving early, like January early, it’s okay. No need to panic.
Start now.
Use my FREE Christmas budget tracker to start today!
Save Money for Christmas
If you are wondering how you are going to save money for Christmas this year, there are two main options: earn more or spend less.
Earn More
You need to earn more by getting a side job to “sell your time” or sell some items you own.
Spend Less
You need to spend less by reducing your expenses. That either means reducing your current monthly expenses or readjust what you were planning on spending for Christmas.
There are so many expenses associated with the holiday season between buying Christmas cards + stamps, matching PJs, paying for a photographer for taking family photos, gifts for family, friends, co-workers, gift wrapping supplies, stockings + stuffers, activities, Christmas tree, decorations, & more!
It’s a wonder we aren’t all broke and in debt.
Oh wait, most of us are.
According to this study by NerdWallet, as of 2019 the average household carries a credit card balance of $6,829 in debt each month.
Psst. If you are feeling overwhelmed by your debt, check out this post where I show you a game plan to pay it off using the debt snowball.
- Related: How the Debt Snowball Works in 4 Easy Steps
Consumers say they will spend an average of $1,047.83 this holiday season, according to the National Retail Federation.
Instead of putting Christmas on the credit card or being tempted to dip into your savings or emergency fund, try cutting back in some areas. There are still 2 months left to save money for Christmas this year. If you err on the side of simpler gifts, that should be plenty of time to save!
- Related: A Beginner’s Guide: Emergency Fund
Reduce your heating bill
The first way to save money for Christmas it to reduce your heating bill. The average utility bill is $150-$200/month. The U.S. Department of Energy recommends you should set your heat at 68 degrees and lower it at night. Energy.gov says you can save 10% every year just by turning your heat down 7-10 degrees for 8 hours, while you are at work or sleeping.
Here are 10 quick ways to stay warm and save money on your heating bill:
- Programmable Thermostat
- Bake
- Cardio
- Winterize Your Space
- Invite People Over
- Hot Water Bottle
- Space Heater
- Bundle Up
- Check Your Furnace
- Extra Blankets
For a month or two, be conscious about your heat and energy usage. By following all these tips, you could probably save $100 in the two months left before Christmas.
- Related: 18 Ways to Stay Warm Without Turning up the Heat
Cut down your A/C bill
The thought of using A/C at Christmas time seems so foreign to me but I understand that not everyone lives in a climate where heat is warranted. And I must admit, I am slightly jealous of that. Where I live, winter can come as early and October and stay as long as April. That is 7 months of frigid temps where the heat is running.
But some people have a heat problem (if we can call it a problem..) where it’s too warm and they need to run the A/C for months on end. I have some tips for you, too! Here are ways you can stay cool without running the A/C.
- Fans
- Wet Washcloths
- Water Games
- Draw the Blinds
- Loose Clothing
- Cool Shower
For just a month or two, raise your A/C temp to save money on your bill. HVAC.com says it costs about $0.54 per hour or $4.33 to run the A/C for 8 hours and another $3.80 to run it for 7 hours while you’re sleeping. That comes out to $252/month just to run the A/C.
If you were to cut back to running the A/C half the time, you could have a potential savings of $126 each month for a total of $252 to add to your Christmas budget!
- Related: How to Stay Cool Without Air Conditioning
Cut the coffee spending
You knew this was coming.
What better way to save money for Christmas than by looking at where people are spending a ton. The average American spends $3 a day on coffee and the average millennial spends $5.50 a day at coffee shops. This is more than millennials are saving for retirement. Don’t believe me, check out the research.
Coffee companies don’t really need to ramp up their marketing this season because those hot peppermint mochas practically sell themselves. What is more comforting than sipping on a perfect blend of coffee and chocolate topped with whipped cream, and some cocoa drizzled in.
I mean… look at it.
I dare you not to salivate while looking at this gorgeousness.
It’s too cold outside to have a picnic in the park so the the easiest place to hang out with friends is in a warm coffee shop. But challenge yourself to invite your friends over (which is a great way to heat up your place so you’re saving money on your heating bill at the same time) for some specialty coffee made especially by you.
Whip some cream, grab a box of candy canes + a bag of marshmallows. Make your own homemade hot chocolate or just buy the cheap pre-made packets. Our friends at DIY With my Guy have a great homemade hot chocolate recipe that you can even make in the slow cooker.
By dropping coffee shops from your routine, you’d save $167/month for a total of $334 that you can save for Christmas this year.
- Related: Stop Buying Coffee | Money Saving Challenge
And if going to coffee shops with friends is one your Christmas traditions, build it into your budget and find other areas to cut, which brings us to our next way to save.
Cut out your subscriptions
In my previous post we discovered that the average person spends $237 on subscriptions each month. If you cut out your subscriptions for just 2 months, you’ve already saved $474. But, cutting out all subscriptions may not be feasible. After all, if you’re just now budgeting for Christmas gifts, I’m gonna guess that you take advantage of Amazon Prime’s 1 & 2 day shipping to the full extent. [Speaking from experience.] Plus you kinda need the internet to live nowadays.
So let’s say you just cut down on half of your subscriptions. That saves you $118.50/month, $237 total. That’s a decent chunk!
Put your monthly subscription boxes (Birchbox, Dollar Shave Club, Stitch Fix, Ipsy, and FabFitFun to name a few) on hold just for a month or two. You are sacrificing receiving so you can give. It’s a very noble cause.
Keep Amazon because it’s needed now more than ever but try getting rid of the media subscriptions. You can listen to Christmas music on Pandora, YouTube, and Spotify for free. You can also watch the cheesy Hallmark movies using your Amazon Prime subscription and I’m sure YouTube has them as well. If not, go to the library and rent out Christmas movies!
A $5 subscription here and there may not seem like much but it adds up. It all adds up. Besides, you probably won’t have much time to spend hours on Netflix because of this next way to save.
- Related: Check Your Subscriptions | Money Saving Challenge
If all your money is tied up in expenses, you either need to cut expenses or get more money. That’s usually easier said than done, but not during the Christmas season. December’s expenses are probably the highest they are all year which makes cutting expense a little difficult. So what’s next?
Get a seasonal job
After you’ve exhausted all the ways to cut spending, look for ways to earn more. It’s the busiest shopping time of the year and lots of stores are looking for extra holiday help. That could be you! Retail may not be your dream job by it’s only temporary. You may even get a discount at the store and can use that to buy some Christmas presents!
‘Tis the season that people are looking for:
- personal shoppers
- gift wrappers
- dog walkers
- babysitters
- servers
- delivery drivers
- cleaners
- personalized gifts
- hand lettered crafts
- knitted apparel
- & more odd tasks
Get your side hustle on by offering your services, talent, and time to earn some extra cash. Open a shop on Etsy, Facebook Marketplace, Ebay or even Craigslist if you’re feeling brave.
Take advantage of apps like TaskRabbit, DoorDash, InstaCart, Uber, Uber Eats, Lyft & more. These apps allow you to sign in when you’re available and complete tasks or deliver food or passengers to a specified location. If you’re driving home from work, turn on Uber or Lyft. If you’re out running errands, turn on InstaCart and make an extra stop on your way home. Earning money can be that simple.
Get paid to shop
Speaking of apps, if you aren’t using a cash back app already, sign up for one. Try Ibotta or Rakuten (Ebates). This doesn’t cost you a thing, except maybe 5 minutes of your time, and you have everything to gain.
I really like Ibotta. It’s super simple. When menu planning, treat the app like the grocery store app and plan your meals around what’s on sale. Upload your receipt to the app and get cash back!
Rakuten is the same idea, here is a link for your first $10! Now is the best time to start using these apps because you’re going to be spending the money already this holiday season, you might has well get some back!
This is a great way to get cash back rewards without having a credit card. So those of you who have cut the credit cards can still join in the fun!
You can use the cash back from shopping to add to your Christmas fund. And there you go! You’ve been equipped with the know how to save and earn a ton.
Let’s recap
If your bank account forgot that the holiday season is near,
follow these steps to save money for Christmas this year:
- spend less on Christmas
- reduce your the heating (or A/C) bill
- stop frequenting coffee shops
- cut back on your subscriptions
- apply for a seasonal job
- get paid to shop
Next time, budget early for Christmas. Don’t let it catch you off guard. It happens in December, every year.
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