Christmas in July: How to Start Saving Now for the Holidays

It might be hot outside, but now is the perfect time to start thinking about the most expensive season of the year—Christmas. “Christmas in July” isn’t just a fun retail gimmick; it’s a smart reminder to get ahead of your holiday spending. By planning now, you can avoid the December financial crunch and actually enjoy the season stress-free. Here’s how to get started.

Take Advantage of Mid-Year Sales

Retailers love to roll out big discounts in July, often rivaling Black Friday deals. This is a great time to snag gifts, decorations, and even travel essentials at a fraction of the cost. Make a list of people you plan to shop for and keep an eye out for deals on items they’ll love. Shopping early means you can spread out your spending and avoid last-minute markups.

Set Up a Holiday Sinking Fund

A sinking fund is a simple but powerful budgeting tool. It’s a dedicated savings account where you set aside a small amount each month for a specific purpose—in this case, holiday expenses. If you start in July and save just $50 a month, you’ll have $250 by December. Automate your savings so it’s one less thing to think about, and watch your holiday fund grow without stress.

Use Cashback and Rewards Apps

Apps like Rakuten, Ibotta, and Honey can help you earn cashback or find coupon codes while you shop. Pair these with a rewards credit card (used responsibly) to double up on savings. Just make sure to pay off your balance in full to avoid interest charges. Every little bit adds up and can go straight into your holiday fund.

Plan Ahead to Avoid Credit Card Debt

The biggest holiday budget buster? Last-minute spending on credit. By starting now, you can plan your purchases, take advantage of deals, and avoid relying on high-interest debt. Make a gift list, set spending limits, and track your progress. Your future self will thank you.

Start Early, Stress Less This Holiday Season

Christmas in July isn’t just about early shopping—it’s about smart planning. By leveraging sales, setting up a sinking fund, and using cashback tools, you can enjoy the holidays without the financial hangover. Start now, and make this year’s holiday season your most joyful—and budget-friendly—yet.