Christmas is coming! Whether it’s December or March, it’s never too early to start thinking about how to afford the holidays. Yet, for many families, Christmas expenses come as a yearly financial shock. If you’re struggling to afford Christmas, you’re not alone. Many resort to credit card debt or even predatory personal loans to make the holidays happen, but I don’t want you to fall into that trap!
The good news is that it’s possible to enjoy the season without going into debt. Here are some practical ways to pay for Christmas this year, and how to prepare better for the next one.
Assess What You Have
First things first, figure out what you’re working with. You need to understand your financial situation.
Check Your Accounts
Look at your savings, checking, Zelle, and even the loose change in your couch cushions.
Evaluate Your Budget
If you already use a budget, see how much extra cash flow you have between now and Christmas.
Knowing how much money you currently have will help you plan your spending better. If you find you have little to nothing, don’t worry—you have options.
Related: How to Create the Best Budget in the Military
Trim Your Expenses
Reducing expenses may feel uncomfortable, but it’s a short-term solution to create breathing room for Christmas spending. The goal is to create extra cash flow for Christmas and the holidays.
Review All Expenses
List every expense, from housing to streaming subscriptions, and rank them by importance. Essentials like rent, utilities, and food should come first. Discretionary items like takeout or travel come last.
Cut Non-Essentials
Consider temporarily pausing subscriptions like Netflix, eating out less, or shopping for groceries more strategically. You can also cut out subscriptions and services you are not using altogether. Small changes can add up.
Remember, these changes aren’t forever. They’re for right now. By making these changes, you’re creating space for holiday spending without taking on debt.
Find Creative Ways to Earn Extra Money
When cutting costs isn’t enough, you have to find ways to boost your income with a side hustle. Even small side hustles can make a big difference. A side hustle is just an extra way to make money other than your main source of income. Here are some side hustles to help with money for the holidays.
- Pick Up Seasonal Work—many retailers and restaurants hire temporary workers for the holidays. These part-time jobs often come with employee discounts, which can stretch your holiday budget even further.
- Sell Unused Items—go through your home and sell items you no longer need. Platforms like Facebook Marketplace, eBay, or local consignment stores can help you turn clutter into cash.
- Explore Online Gigs—virtual assistant work, transcription, or tutoring are great ways to earn extra money from home on your schedule.
- Flip Garage Sale Finds—buy inexpensive items at garage sales or thrift stores, then resell them online for a profit.
Get Gifts Cheap or Free
When money is tight, it’s time to think outside the box. Christmas isn’t about how much you spend—it’s about showing love and thoughtfulness.
Regift Thoughtfully
If you have unused items or gift cards, consider regifting them to someone who would appreciate them.
DIY Gifts
Handmade gifts like baked goods, crafts, or photo albums are often more meaningful than store-bought ones.
Use Coupons or Sales
Shop smart by using coupons, cashback apps, or waiting for sales to get the best deals. I use Rakuten all year long to get cashback I can use for Christmas shopping.
Offer Your Time
Create coupons for acts of service, like babysitting, cooking dinner, or yard work. These thoughtful gifts cost nothing but mean a lot.
Skip Gifts Altogether
If necessary, be honest with your loved ones about your financial situation. Most will understand, and some may even feel relieved to skip the gift-giving stress.
Now that you know how to make it by this Christmas without taking on extra debt. Here’s how you can be better prepared for next year.
Related: How Military Families Can Stress Less on a Tight Holiday Budget
Prepare for Next Year
Once you make it through this Christmas, start planning for next year so you can avoid the same stress. The key is to spread out the financial burden over 12 months instead of cramming it into one.
Set Up Automatic Savings
Transfer a small amount, like $75-$100, into a dedicated Christmas savings account each month. By next December, you’ll have $900-$1,200 saved for gifts, decorations, and holiday activities.
Use the Envelope Method
If you prefer cash, put your monthly savings into an envelope labeled “Christmas.” When you start holiday spending, commit to only spending what’s in the envelope.
Shop Throughout the Year
Look for deals on gifts and holiday items during off-season sales to save money and avoid last-minute shopping stress. Ask family members for a wishlist they update all year so you can get things they want or need.
Stay Debt-Free and Enjoy the Holidays
The holidays are meant to bring joy—not financial stress. By taking a realistic look at your finances, cutting costs, earning extra income, and getting creative with gifts, you can celebrate Christmas without falling into debt.
Most importantly, remember what the season is truly about—spending time with loved ones and creating memories. Gifts don’t have to be expensive to be meaningful. With a little planning, you can enjoy the holidays without financial regret and set yourself up for an even better Christmas next year.
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