Inflation always hurts, but it stings even more with the holidays coming. The National Retail Federation says that “43% of consumers say they don’t earn enough to cover the costs of gifts and other holiday items this year.”⁵ And Ramsey’s own State of Personal Finance report found that 47% of Americans plan to spend less on Christmas this year.

If you fall into either of those categories, you might be tempted to dip into debt—just for Christmas gifts. Don’t give in! That makes this Christmas next year’s problem. Don’t start 2023 off on the wrong foot. You can pay for an all-cash Christmas. These tips will help.

Be honest with yourself and think about why you’re buying presents before you think about how you’re going to pay for them all. This gets you to the root of your priorities and intentions. It’ll help you as you walk through the rest of these tips!

Want to be the hero of the holidays without wrecking your wallet? Budget.

That’s right—to stay on Santa’s nice list, set a spending limit and stick to it. Use our Christmas Present Planner as a guide, and download your free EveryDollar budget to help.

So, lots of people spend, spend, spend in December and never check in on their budget. They just think, I’ll worry about it in January. Don’t be like lots of people. Future you deserves better.

Track your expenses as you spend. This way, you won’t overspend and ruin this month’s and next month’s budget.

P.S. The premium features of EveryDollar make tracking easier. You’ll connect your budget to your bank account so transactions stream straight in. Then you just drag and drop them into the right budget line. It’s simple and it gives you more time to do the things that really matter to you, like learning all the lyrics to the “Twelve Days of Christmas.”

You know what? Upgrading your budget to that premium version sounds like the perfect present to give that special someone on your list—you!

We all know Christmas can get expensive. This year, Americans plan on spending $1,300 on the holidays.⁶ That’s over 180 peppermint mochas. How will you rustle up that much dough in time?

First of all, you don’t have to spend that much. Seriously. Please know and own that truth. Do not spend outside of your comfort zone this season or any season. Do not go into debt because of the pressures to spend some sort of average total. You have nothing to prove here.

But what about the money you do need to cover Christmas? This is where you’ll use all the tips in this guide (times two if you need).

Decrease your expenses, increase your income, and try out those savings hacks. Make the changes you need in the budget to make room for holiday expenses.

And . . . in this special page of your inflation guide, we’ve got even more savings tips (that are super Christmas-specific). So, try out as many of these as you need:

• Choose time over money. For some people, spending time together really is better than the joy of a physical gift. You can save money this year by valuing shared memories over more stuff.
• Give fewer gifts. You don’t have to buy a present for every person you’ve ever known. As you’re trimming the tree, trim your Christmas list as well. Don’t be a scrooge, but also don’t overspend on obligation gifts.
• Order online early. Ordering online means shopping from your couch, car or bed. No getting out and spending gas money. No tempting clearance aisles. Plus, you can price check those pocket monster trading cards across multiple stores without ever putting on real pants. Just make sure you order early so you aren’t wasting money on rush shipping!
• Say no to random gift exchanges. Listen: You don’t have to jump in on every secret Santa gift exchange at your work, social group or book club. Christmas is expensive enough. Be kind, but just say no thank you to random gift exchanges.
• Go in on a group gift. Want to know how to get someone a bigger, more expensive gift while still spending the appropriate amount of money? Just go in on it with others!
• Make presents. Okay, we aren’t talking about macaroni art or handknit phone cases (especially if you’ve never held a knitting needle in your life)—but if you’ve got legit creative skills, consider using them to make presents this year. (Don’t forget to budget for supplies!)
• Get thrifty with stocking stuffers. Stockings are what the dollar store was made for. Fill those oversized socks with fun office or school supplies, card games or bulk candy you can split up to make sure everyone’s dentist stays booked up next year.
• Live by the list. You made a Christmas list. Stick to it. Of course, if you forgot Aunt Rebecca, you can add her in . . . but don’t get so swept up by the tidings of comfort and joy that you buy everything red plaid you can find for everyone you see. That’s a quick drive to Overspending Town, population you—and nearly everyone else, honestly. Be different. Live by the list.
• Don’t shop at the mall. Avoiding the mall means also avoiding every single pushy kiosk salesperson. Plus, you won’t have to worry about the millions of distractions and the temptation of buying hot, fresh cinnamon-covered pretzels you “earned” by fighting the crowds.

You can have a merry Christmas, and a happy new year! Even with inflation. Start by saying no to taking on debt to deck the halls and pack presents under the tree. Then make your EveryDollar budget and stick to it for all the holly jolly without the overspending.

And through it all, remember the real reasons for the season—and that none of those reasons are “more stuff.”