How to Set a Christmas Budget (and Actually Stick to It)

Most people don't overspend at Christmas because of one big gift. It's the small extras: wrapping paper, a second trip for food, a last-minute present for a neighbor. A clear budget, written down, is the easiest way to enjoy the season and still feel fine in January.

1. Pick one total number first

Look at what you can spend without touching savings or using credit you can't clear in January. That's your holiday budget. Write it at the top of the page before you buy a single thing.

2. Split it into four buckets

Divide your total into gifts, food and drink, decorations and cards, and a small "extras" amount for the things you always forget. A common split is about 60% gifts, 25% food, 10% decorations and cards, and 5% extras, but use whatever fits your family.

3. Give every person on your list an amount

Write down everyone you're buying for and set a limit next to each name. Add up the column. If it's more than your gift bucket, trim now, not at the till.

4. Track every purchase as you go

Each time you buy something, write the actual price next to the planned amount. This takes seconds and shows you straight away if you're drifting over. A gift list with a budget column makes this easy.

5. Plan the food with a list

Plan the Christmas menu, then shop from one list. Buy long-life items early and fresh food in the last few days. You'll waste less and avoid the panic shop on December 23rd.

6. Start saving now, even a little

Putting aside a small amount each week from now until December takes the pressure off. If you want to make it a habit for next year, try the 52-week savings challenge.

Get it all on paper

Our Christmas and Holiday Planner includes a gift list with budget columns, a Christmas meal and baking planner, a card address list and a holiday countdown. For the rest of your money, the Budget and Expense Tracker helps you plan January too.

Keep reading: How to plan a stress-free Christmas · Christmas planner printables