Christmas in July: Start Budgeting Now for Holiday Spending 

Written by:

Alexis Maynard

Reviewed by:

• Erin Frizell

While the holidays may seem far away, July is actually the perfect time to start planning seasonal expenses. Between gifts, travel, and decorations, costs can add up fast. Creating a budget now can set yourself up for a more enjoyable holiday season.  

Start Budgeting Early 

Many people wait until November to even think about holiday shopping, but planning ahead gives you more time to save. By setting aside a small amount each month, you can spread out expenses instead of relying on credit cards or dipping into emergency savings. 

Starting early also allows you to shop for sales throughout the year, helping you stretch your holiday budget further. Take advantage of back-to-school and Labor Day sales. Buying early can also help you avoid supply shortages and increased prices closer to the holidays. 

Estimate Your Holiday Spending 

Begin by reviewing what you spent last year. Consider categories such as: 

• Gifts for family and friends 
• Travel expenses 
• Holiday meals
• Decorations 
• Charitable giving 
• Special events

Use those costs as a guide to create a realistic spending plan for this year. 

Determine a Savings Goal

Once you have an estimated total, divide that amount by the number of months remaining before the holidays. For example, if you expect to spend $1,200 and have four months to save, setting aside $300 per month can help you reach your goal without feeling overwhelmed. 

Consider opening a dedicated savings account to keep your holiday funds separate from your everyday spending money. 

Enjoy a More Stress-Free Season 

The holidays should be a time for celebration, not financial stress. By starting your holiday budget in July, you’ll have a clear plan, more control over your spending, and the confidence to enjoy the season without added debt. 

This year, give yourself the gift of preparation, and start your holiday planning now.