- Assess Your Situation: Smart budgeting takes a little more work than simply saying, “I want to save this much.” Assess your finances to decide the maximum amount you can save each day, week, and month. Account for all the money that comes in and where it goes to currently (expenses, savings, recreation, etc.).
- Be Realistic: Whether you’re deciding how much you want to save or estimating how much you’re going to spend, be overly realistic. You won’t be debt-free if you budget $200.00 and end up spending $400.00, so make sure you’re honest with yourself.
- Look At Past Years: You may have an idea of what you spent in previous years. Use this as a guide for how much you need to budget and to help you look for areas where you may be able to trim costs.
- Save Longer: If your budget is tight now, you may opt to wait to start saving for Christmas. Keep in mind, though, that it’s not that far off. The earlier you can start saving — especially for larger budgets — the better.
Without further ado, here are four budgets you can use as guidance, organized by the desired amount to save from small to large.
Small: The Cup Of Coffee Budget
You may be familiar with this budgeting technique because it’s easy to track and it’s very clear what you need to do to save. To refresh your memory, this budget is based on saving the money you would spend on a cup of coffee each day by making it at home (or forgoing it completely).
Whether or not you buy coffee every morning, this budget will help you save for Christmas and remain debt-free. If you’re looking to free space in your finances, think of things like coffee that you can cut down on for several months in order to meet your goal.
For just the price of a cup of coffee, you can be debt-free this Christmas. Sounds sweet, right?
Saving Schedule
If Saving For Four Months
- Daily amount to save (for five days per week): $2.50
- Weekly amount to save: $12.50
- Monthly amount to save: $50
Total saved:
$200
*Bonus: Add $12.50 per month to increase your budget by $50.00
If Saving For Two Months
- Daily amount to save (for five days per week): $5
- Weekly amount to save: $25
- Monthly amount to save: $100
Total saved:
$200
*Bonus: Add $25.00 per month to increase your budget by $50
Comfortable: The 500 Club
Depending on how many people you need to get gifts for, allotting $500 for your Christmas budget is a very comfortable place to be. By planning ahead and practicing savvy shopping, you can definitely make this budget work for you.
Saving Schedule
If Saving For Four Months
- Daily amount to save (for five days per week): $6.25
- Weekly amount to save: $31.25
- Monthly amount to save: $125
Total saved:
$500
If Saving For Two Months
- Daily amount to save (for five days per week): $12.50
- Weekly amount to save: $62.50
- Monthly amount to save: $250.00
Total saved:
$500
Modest: The Average American Christmas
Believe it or not, last year the average American
planned to spend around $1,000 on Christmas. As you know, costs for the holiday can add up quickly, so planning for this budget may put you in the best position to come out of Christmas debt-free.
Saving Schedule
If Saving For Four Months
- Daily amount to save (for five days per week): $12.50
- Weekly amount to save: $62.50
- Monthly amount to save: $250
Total saved:
$1,000
If Saving For Two Months
- Daily amount to save (for five days per week): $25
- Weekly amount to save: $125
- Monthly amount to save: $500
Total saved:
$1,000
Big: The Santa Claus Stand-In Budget
If you’re not banking on Santa contributing this year, then you may want a higher budget for Christmas to make sure that the kids don’t notice.
Many Americans spend over $1,000 on Christmas. If you’re one of them, it’s best to plan early and save for longer.
Saving Schedule
If Saving For Four Months
- Daily amount to save (for five days per week): $18.75
- Weekly amount to save: $93.75
- Monthly amount to save: $37
Total saved:
$1,500
If Saving For Two Months
- Daily amount to save (for five days per week): $37.50
- Weekly amount to save: $187.50
- Monthly amount to save: $750
Total saved:
$1,500
