Start with basic categories, like Entertaining, Gifts, Greeting Cards, and Food. From here, you can make a list of what you need to buy for each category. List with as much detail as possible, as this will benefit you in the long run.

• Give each category a thorough list of items. For the Gifts category, include every gift recipient you plan to give a gift to. Then plan what to give each person or set a spending limit for each gift.
• Your Food list can include categories for different events and a full list of the groceries and other food items that you need for each event.

What's on your list?

Now that you have thorough lists for each need during the holiday season, assign a rough estimated price to each item and formulate a budget. How much money do you need to fulfill all of your goals for the holiday season?

What's your budget?

Now that you know how much you need in total, you can figure out how much you need to put away every month to achieve your goal. Divide your total by the number of months left until Christmas. That's how much you need to save each month.

• Alternatively, break your totals down into smaller chunks. For example, you can put away $20 per month for food for three months, or $75 for gifts per month in the lead-up to Christmas.

How much can you save every week/month?

As you save money, keep a tally of what you've saved and where each saved dollar is going to go. This will help keep you on track from month to month as you prepare for the holidays.

Can you start immediately?

You may need to tweak your plan for various reasons. Your budget needs may change, or the amount of income you're bringing in may change. If this happens, just tweak your plan to address the changes and keep going.

• The closer you get to your savings goal, the better off you'll be in the long run. Keep close track of your numbers so you can make tweaks and changes as soon as the need arises rather than after the fact.

Does your plan require any changes?