The season is upon us! Before we know it, it will be Christmas. The hustle and bustle will soon take over, and with that, a certain stress that comes from knowing our wallets are about to get lighter sets in. Charles and I both grew up in households that went all out at Christmas time (and still do!), so it’s hard for us to scale back sometimes. That’s why I created a system a few years ago to help us stay on budget while still covering all our bases when it comes to gifts.

I know it’s not even Thanksgiving yet, but I wanted to go ahead and share this with you because, if you’re like me, you like to shop early.  My goal is usually to have all of my Christmas shopping done by the end of Thanksgiving weekend.

So here goes…my best tips for holiday shopping on a budget.

1.  Set a budget. It seems obvious, but there it is. Trust me: simply saying that you will “spend less” this season doesn’t work. Also, be specific. Rather than setting an overall spending limit, set a limit for each person or couple you plan to buy for.

Below is a free template that I came up with and use each year.  Just click to download!

PDF version:

Download (PDF, 22KB)

Interactive Excel version:

Download (XLSX, 13KB)

2. Track everything. What good is a budget if you don’t stick to it? If you feel like you might be tempted to go over your budget, use the cash envelope system when shopping.

3. Be aware of sales, deals, coupons, and rewards. It pays to shop early. Black Friday, Small Business Saturday, Cyber Monday…these are all great times to capitalize on savings. It wasn’t until I ventured out in the wee hours of Black Friday morning several years ago that I realized just how big your savings can be on these days.

In addition, sites like coupons.com and smartsource.com make “clipping coupons” a breeze. Any time I shop online, I go through Ebates so that I can get a little cash back. I’ve already earned about $150 this year just for shopping online for things that I would have bought anyway.

4. Remember that it’s the thought that counts. You don’t have to spend a huge amount on your loved ones at Christmas to let them know that you love and appreciate them. Thoughtful and handmade gifts can be even more special than expensive ones. And edible gifts are always welcome in our house.

Lastly, why not include a personal card with each gift? We give birthday cards, but so often forget to be as personal at Christmas.

5. Shop after the holidays. This is the time to stock up on seasonal decor and gifts for next year. Most retailers begin their inventory audits at the beginning of the year and are trying to move products off the shelves. Look for decorations and gifts that you know won’t go out of style in the next year.

What are your holiday shopping tips? Do you like to knock out your shopping early, or wait until later in the season?