How to Prepare Now for Christmas (Without Going Into Debt)
Look, I know it’s only September… but if you’re anything like me, Christmas always sneaks up faster than expected. And with it comes the pressure: presents, food, decorations, school holidays… and the swipe of the card that can leave you stressed and paying it off well into the new year or cringing when you see those After Pay payment reminders.
This year, let’s do things differently. By starting now, you can enjoy the holidays without the debt hangover. Here’s how:
Step One: Set Up a Christmas Sinking Fund
A sinking fund is just a fancy term for a savings pot with a purpose. Decide how much you want to spend on Christmas (gifts, food, travel, decorations) and divide it by the number of paydays left.
👉 If you’re paid fortnightly, there are about 6-7 pays left before Christmas. So if you want $800 for Christmas, you’ll need to set aside about $115 each pay.
Tip: Keep this money in a separate account or labelled savings space so you don’t accidentally dip into it.
Step Two: Get Real About Gifts
I’ll be honest — I’ve definitely gone overboard in past years thanks to mum guilt. Too many presents, too much money, and kids who ended up overwhelmed. I think it’s really easy to get caught up with the buzz of social media influencers who go to excess. Let me de-influence you!
This year, think about trimming it back:
Family agreements: Suggest only buying for kids, or do a Secret Santa with a price limit.
Op-shop or pre-loved: Many thrift stores have brand-new toys, books, and even Christmas decorations at a fraction of the cost.
Homemade gifts: Baking, craft, or even framed photos make heartfelt and budget-friendly presents.
Set spending limits: Decide on a maximum per child (or per person) and stick to it.
Step Three: Plan Ahead for Food & Festivities
Food and drink is often the biggest Christmas blowout.
Start a supermarket Christmas savings account now, or put aside grocery vouchers.
Pick a realistic budget and stick to it.
Plan the menu early and split costs with family if possible.
Think about leftovers: what can be frozen, what can be reinvented into meals?
And don’t forget — memories aren’t made from how much you spend. Free activities like tree lightings, volunteering, or a family movie night at home with popcorn can feel just as magical.
Step Four: Shop Smart (and Early)
Write a list and avoid last-minute panic buying.
Use loyalty points or cashback rewards for gifts.
Declutter and sell unwanted items now to raise a little extra cash for Christmas.
Keep an eye on Black Friday/Cyber Monday sales — but only for items already on your list.
Final Thought
Christmas doesn’t have to be a season of debt. By planning now, keeping things simple, and focusing on connection over consumption, you’ll step into the new year lighter, financially and emotionally.
Because the best gift you can give your family is a happy, stress-free you!
