How to Afford Christmas On a Tight Budget (2024)

Approaching the holidays while money is tight can be very stressful. And trust me when I say this if it’s stressful for adults, the kids can pick up on it too. I was one of those kids. I knew how stressful it was for my family from November to January and many of you may share similar experiences.

So, the grand old question always remains, how can you afford Christmas on a tight budget? When your money is tight, it can be hard to imagine how you can create a magical holiday for you and your family.

However, one thing we all seem to forget is that the magic of Christmas doesn’t involve as much “stuff” as we think it does. It really involves a lot of tradition, people, comfort food, and good ole cheer. Yet still, it helps to have a little money on hand to make things easier, and that’s what I want to share with you today.

We’re going to discuss some very practical and easy ways you can afford Christmas on a tight budget. Don’t let the paycheck to paycheck lifestyle keep you from joining in on the holiday cheer. All you need is a vision and a plan. So, here are some helpful ways on how you canafford Christmas while money is tight.

Start Budgeting For Christmas Now (and always!)

There is no way around budgeting and you should be doing it regardless of the time of year! If you want to get your finances together, save more money, and still manage to live a little, it all starts with your budget. However, before you create a budget, you need to know what you’re currently spending your money on.

So, start by tracking your expensesso you can get a good picture of where your money is currently going. Knowing your spending habits will help you learn where you need to cut back. A cut or two there can mean the difference between having a few gifts under the Christmas tree or not having any. We’ll hone in on a few ways to cut back in second…

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Create a Christmas Saving Goals

After you’ve tracked your expenses and created your budget, it’s time to create a savings goal. Since you’re trying to afford Christmas on a tight budget, start there. Let’s say you want to save $500 before December.

If you’re currently in debt, it’s important that you continue to make the minimum payments on your debt so you don’t get behind. If you’re throwing extra at your debt, that’s even better!

However, if paying extra on your debt means that you’re going to end up putting Christmas presents on your credit card, I highly advise against it. Just continue to make the minimum payments and set aside small amounts to spend on Christmas presents. We’ll discuss more on how you can add to your savings and shop smarter this holiday season.

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Open an Online Savings Account

Once you’ve created a Christmas savings goal, it’s super important to have a place to put it. Since I like to save for Christmas year round, I keep our gift funds in an online savings accountwith Capital One 360.

The interest rates are really competitive and it typically takes 2 to 3 business days to transfer it to your main checking account. That removes all the temptation that comes with having a large sum of money sitting around. You don’t have to worry about dipping into it when you’re not supposed to.

Speaking of checking accounts, if you’re looking for an account that has no fees and one that actually rewards you for saving, I recommendChime.

With Chime, you will have your own spending and savings accounts! Plus, if you sign up for auto-save, anytime you make a purchase, they will be rounded up to the nearest dollar. The round up money will go into a separate savings account.

Last, if you sign up for direct deposit, you will get your paycheck 2 days early!Learn more about the benefits of using Chime here.

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Set up Automatic Deposits

After you’ve opened up your online savings account, get your routing and account number and set up auto deposits from your paycheck. If you use Capital One 360, you can create a goal in your new savings account that will applaud you when you reach certain savings milestones.

Related Reading:Automated Savings Challenge: Save $1,000 or More

Earn More, Spend Less

If your automatic deposits are smaller than you’d like, you can always accelerate your savings by earning more and spending less. Here’s are a five helpful tips that will help you do that.

1) Make extra cash

Surveys aren’t that bad and there are a lot of reputable companies that will pay you. I’ve been an avid survey taker for years to help me afford Christmas on a tight budget.

Here are a few to consider:

Pinecone Research

American Consumer Panel

Vindale Research

Swagbucks(Get a $5 sign-up bonus)

Earning Station

Opinion Outpost

Digital Voice

Product Report Card

Clear Voice

VIP Voice

Harris Poll Online

Here’s a couple of companies I sign up for but they aren’t survey companies. Essentially, you download them to your device and earn money for doing so.

• Shop Trackeris downloaded it to your device and each month you give permission for them access your Amazon shopping history. They pay you $3 for this each month.

• Survey Savvy Connectis also downloaded to your device (up to 3 devices) and you give permission for them to track your internet usage. They’ll pay you $5 per device each month, so that’s a potential of $15 per month.

Helpful Tip: If these companies pay out in the form of gift cards, use these to purchase your gifts or give them as gifts!

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2) Save money on your holiday meals by using Ibotta.

I’ve written adetailed review here if you want to read it, but the short story is you can save on your holiday-related food purchases like eggs, milk, sugar, alcohol, and candy. All you need to do is unlock the rebates on the Ibotta app before you shop.

If you’re a new user, you can score a$10.00 just for trying the app using this link. Once you reach $20, you can cash out using PayPal or a gift card that you can use for your Christmas shopping.

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3) Cut your grocery bill with a meal plan.

The easiest way to save when money is tight is by cutting your food costs. It’s not one of my favorite things to do, but it’s a necessary evil that helps me keep my grocery costs low. Check out this thorough guidethat will walk you step-by-step on creating a meal plan that will help you save extra money for Christmas.

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4) Pair it down.

Another easy way to afford Christmas on a tight budget is to pair down what you’re currently spending even further. Fortunately, there are easy ways to do that, starting with an app that will trim your spending for you.

You can cancel unnecessary subscriptions and negotiate your bills with a free service called Trim. When you sign up, they will analyze your spending and look for ways they can help you trim your expenses and potentially save money on bills like your cable and other monthly subscriptions.

Also, since you’re going to be doing Christmas shopping, always compare what you’re buying to deals online. You could possibly earn big cash-back during the holiday season when you use a free website called Rakuten (Formerly Ebates). You can even use Rakuten to score great deals on your holiday traveling too.

Plus, if you sign up for anAmazon Prime 30-Day Free Trial duringthe month of December (assuming you haven’t used your free trial for the year) you can get free shipping on any holiday shopping you do on Amazon.

Sidenote: Did you know that you may qualify for the Amazon Prime Discounted program?Prime is just $5.99 per month for qualifying customers in select U.S. government assistance programs, such as holders of an EBT card. If you receive assistance, sign up using this link for the free trialso you can receive more info on how to receive the discount and start saving on your online shopping.

5. Opt for experiences.

After you’ve done all of the above, consider making Christmas a magical time through experiences. Many experiences can be dirt cheap or even free. Plus, when you do things with your kids, it’s something they will remember far longer than any gift they may receive. Here are 25 cheap Christmas activitiesyou can do for Christmas on a tight budget.

Related Reading To Help You Cut Your Expenses:

70+ Frugal Living Tips to Help You Increase Your Savings

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You Can Afford Christmas on a Tight Budget

Anyone can enjoy the holiday season, regardless of whether their budget is big or small. If you’re struggling to afford Christmas on a tight budget this year, budget what you do have, save what you can, and incorporate as many thoughtful family experiences into your holiday. It’s the memories we’re really chasing and honestly, memories are priceless.