Reflect, Plan, Act: 3 Smart Steps For Next Year’s Holiday Saving Strategy
🕐 Read Time 5 Minutes
The holidays are magical—twinkling lights, joyful gatherings, and the thrill of giving gifts. But let’s be honest: they can also burn a serious hole in your wallet. Before the eggnog wears off, let’s talk about how this year’s holiday spending can teach us a thing or two about setting up for financial success next year. Ready? Let’s dive into some festive financial wisdom.
Step 1: Reflect on This Year’s Holiday Spending
Before you start planning for next year, you need to understand what just happened. Think of this as a holiday postmortem (without the grim vibes).
List out all the expenses: Grab a notebook, spreadsheet, or that budgeting app you downloaded but haven’t opened since March. Jot down every holiday expense: gifts (for others and, let’s be honest, for yourself), party supplies, decorations, food, travel, wrapping paper, and those cute stocking stuffers that somehow added up to $200.
Tally it up: Be brave. Add up all the numbers. This is not the time to round down; honesty is key.
Ask yourself the hard questions:
How do you feel about this number? Shocked? Content? In denial?
Did your spending align with your values? For instance, if your goal was thoughtful giving, did those last-minute Amazon orders really hit the mark?
Did you plan well? Or did you end up in a panic-buying spree on December 23rd?
This isn’t about guilt-tripping yourself. It’s about understanding your patterns so you can make better decisions in the future.
Step 2: Use What You’ve Learned to Plan for Next Year
Now that you’ve faced the (financial) music, it’s time to use that knowledge as a springboard for next year. The goal? Plan early, save smart, and feel more in control.
Set a holiday spending goal: Based on this year’s total, decide if you want to maintain, increase, or scale back next year. Your goal might include:
Fewer but more meaningful gifts.
Hosting fewer parties or making them potluck-style.
DIY or swapped (think of groups like BuyNothing and Freecycle) decorations instead of splurging on new ones.
Think about the meaning behind the numbers: Did this year’s spending reflect your holiday values? If not, what can you do differently? For example:
If you felt stretched thin, consider reducing the number of gifts.
If you loved hosting but spent too much, plan earlier and shop sales.
If charitable giving is important, budget for donations ahead of time.
Step 3: Take Action Starting in January
Here’s where the magic happens. (Spoiler: It’s not actual magic. It’s just good financial planning.)
Open a dedicated holiday savings account: Choose one that’s separate from your main account to avoid accidental dipping. Many banks let you nickname accounts — “Yule Fuel” or “Winter Wonder Fund” have a nice ring.
Do the math: Take this year’s total spending, adjust it based on your goals, and divide by 12. That’s your monthly savings target. For example, if you spent $1,200 and want to keep the same budget, save $100 per month starting in January.
Automate it: Set up automatic transfers to your holiday savings account. It’s the ultimate “set it and forget it” move, and you’ll thank yourself come December.
Make a list: Sometimes last-minute gifts are purchased in a panic because you can’t think of what to get. Make a list of everyone you’d like to give a gift to now and fill it out with ideas throughout the year to avoid crunchtime impulse purchases.
Make it fun: Create a visual tracker to watch your holiday fund grow. Celebrating small milestones can keep you motivated, whether it’s a digital bar graph or a coloring sheet stuck to your fridge.
8 Holiday Spending Tips for Extra Savvy Saving
Once you’ve gotten your money squirreled away, you’ll want to use it wisely—because why stop at “good” when you can aim for “amazing”? Let’s face it: even the most savvy shopper can see holiday spending get out of hand faster than a toddler at a cookie table.
As you implement your plan to save, it doesn’t hurt to have a spending plan, too! Here are some tips to keep in your back pocket (or stocking):
Shop early (like, really early). There’s no rule that says you have to wait until November to start shopping. Keep an eye out for deals throughout the year, especially during end-of-season sales. By spreading out your purchases, you’ll avoid the last-minute splurge that comes with panic-buying.
Embrace DIY gifts. Channel your inner Pinterest pro and make gifts instead of buying them. Whether it’s homemade candles, baked goods, or personalized photo albums, DIY gifts can be thoughtful, unique, and budget-friendly.
Get creative with wrapping. Wrapping paper is one of those sneaky expenses that add up quickly. Instead of splurging on rolls of fancy paper, try:
Brown kraft paper decorated with stamps or ribbons.
Old newspapers or magazine pages for a quirky, artsy vibe.
Reusable gift bags or fabric wraps (bonus points for eco-friendliness).
Or get the glitzy paper in the post-Christmas sales (look now).
Host potluck-style gatherings. If you’re hosting a holiday party, don’t feel like you have to provide all the food and drinks yourself. A potluck-style event not only cuts costs but also gives everyone a chance to share their favorite dishes. It’s a win-win!
Give experiences instead of stuff. Sometimes, the best gifts aren’t things—they’re memories. Think of tickets to a show, a membership to a museum, or a cooking class. These gifts often feel more meaningful and can be paired with a small physical item to keep as a souvenir of the experience.
Set limits on gift exchanges. If you’re part of a large family or friend group, suggest doing a Secret Santa or setting a spending limit. This reduces the pressure to buy for everyone and keeps the focus on thoughtful giving rather than quantity.
Declutter and sell: Got unused items from past holidays? Sell them online and add the proceeds to your holiday fund.
Leverage cashback and rewards. If you use credit cards for holiday purchases, take advantage of cashback or rewards points. Use these perks to offset costs or save for next year’s spending—just be sure to pay them off each month to avoid interest payments!
All the Joy, None of the “Oy!”
The holidays should be about joy, not stress—financial or otherwise. By reflecting on this year’s spending, planning ahead, and taking simple actions starting in January, you can set yourself up for a holiday season that’s both merry and financially bright.
At Financial Fitness Coaching, we know how important it is to have a plan, especially around a big spending season like the holidays. We’ve created a holiday planning guide that you can use to start saving for 2025.
Start now so we can pour a glass of eggnog and toast to a smarter, savvier holiday season next year.