10 Realistic Ways to Find Extra Cash For Christmas

Find extra cash for Christmas with these ten realistic tips to help avoid Christmas debt.

There was once a young couple named Della and Jim. It was the day before Christmas, and they had no money to buy each other a Christmas present.

Della looked at herself in the mirror and sighed, wondering what she could give her beloved husband. And then she had a brilliant idea. She could sell her long, beautiful hair – hair that shone bronze in the sunlight and reached below her knees – and use the proceeds to buy Jim the best Christmas gift ever.

As she wandered around the shops, she found the perfect gift for Jim – a chain from which to hang his one prized possession: his grandfather’s gold watch.

You may have heard this story before. It’s The Gift of the Magi, by O Henry and it’s one of my favourites. If you haven’t heard it, you may guess where the story leads.

Imagine getting the perfect gift for Christmas. You just love it!

Now imagine the person who gave it to you put themselves into financial hardship to buy it.

It sounds extreme and yet that’s exactly what many, many of us do to ourselves each year! We extend ourselves financially and then live with the pain later. In fact, many Australians still have Christmas debt hanging over them at Easter and up to 15% surveyed in Finder’s national survey will take up to five months to clear Christmas debt.

Many of us take it for granted that Christmas will be a big credit card blow out and we’ll wake up in January with a big debt hangover.

When Jim got home that night he was shocked to see Della’s hair cut short.

‘It’s just hair,’ Della reassured him, ‘it will grow back! I sold my hair to buy you the perfect Christmas gift. I love you so much, I wanted to give you something special.’

Jim sank onto the couch looking bewildered. Della couldn’t understand Jim’s reaction.

‘Merry Christmas, Della. Open my present first and you will understand why I’m a little in shock.’

Della opened the gift and there were the most beautiful set of shell combs she had ever seen – just the right colour to match the long hair that she no longer had.

‘Never mind, Jim. It will grow back. Open your gift.’

Jim opened his gift and nearly cried. There was the beautiful silver chain, perfect for his heirloom watch.

‘Oh Dell,’  Jim sighed. ‘I sold the watch to buy you those combs!’”

Have you ever felt pressured to overspend during the holidays. I know I do, especially as the kids get older.

We all want to be generous at Christmas time.

That generosity of spirit is something beautiful to be cherished. But we have to ask ourselves whether we should be putting ourselves in debt to give gifts. Or is it better to try and find a balance.

Ideally, we all start Christmas fund at the beginning of the year and save up during the year (and keep ‘stuff’ to a minimum – do we really need all those gifts?).

But what if you don’t have a Christmas fund?

10 Easy Ways to Find Extra Cash For Christmas

Below are ten ways to find some spare cash to make this Christmas a debt-free Christmas.

But before you begin, it can help to set a budget for Christmas so you have something to aim for. Saving will be easier if you intentionally keep costs low.

Christmas Budgeting Tips: Start with a Plan

How much money do you need to save for Christmas?

To work out your Christmas budget, write a list of all the people you want to give a gift to and how much you want to spend on each person.

Then include a food budget and money for extras like wrapping paper, travel if you are travelling to visit relatives, Christmas decorations, your work’s Christmas party and secret Santa.

Add it all up and you’ve got your Christmas budget.

Does that amount look impossible to reach? Next look at ways to enjoy Christmas on a tight budget.

Want a free Christmas planner to help you budget? Check out the post 12 Ways to Save Money at Christmas to download the planner.

Christmas on a Budget

How are you going to get that perfect gift on a budget? Here are some ideas for Christmas on a budget:

• Make Christmas about family and friends and focus on the fun things you’re going to do together rather than the gifts.
• Be choosy about which Christmas functions you attend. You don’t have to attend them all.
• Stick to one gift for adults and a few gifts for kids.
• Keep an eye out for sales.
• Shop online (and have your gift arrive on time).
• Consider and scout around for second-hand gifts
• Start handmade gifts
• Entertain on a budget
• Decorate on a budget

It helps to write a list of gift ideas that are within your budget, for each person you’re buying so you don’t leave Christmas shopping until the last minute, when it will be more expensive and more stressful.

1. Save Your Savings

These ideas can really help you build up Christmas cash—as long as you’re putting those savings aside! Try setting up a separate account just for Christmas and transfer a little each day to see it grow.

Did you take lunch to work today instead of buying it? Transfer the savings to your Christmas fund.

Did you say no to coffee? If you transfer your savings straight away, you’re less likely to spend it on something else.

Do you have spare change lying around the house? It’s amazing how quickly that silver can add up when you bank it.

2. Try a No-Spend Month

A no-spend month can be a great way to find some extra cash fast.

The idea is to cut your spending to the bone and then deposit your savings into your Christmas fund.

If you get into debt for Christmas, you can try another no-spend month after the holidays to pay it off.

Here’s how to do a no-spend challenge.

3. Use Discretion When it Comes to Discretionary Expenses

Does a no-spend month seem unrealistic at this time of the year?

Personally, I keep getting slammed with unexpected expenses from school activities to last minute end-of-year break-up parties to oops, the dog ate a Christmas ornament and now we have to go to the vet.

Instead of cutting expenses to the bone, another option is to analyse discretionary spending and cut out any ‘little luxuries’ for a while.

Little luxuries for me include coffee and books. Others discretionary spending to whittle down for a while could be work lunches, takeaway, dinner out, entertainment, clothing and other discretionary expenses while you save for Christmas.

While it’s nice to enjoy these things when we don’t have other more pressing expenses, they can add up quickly and so are a good place to start saving now.

4. Famine before the Feast

If you have a full pantry or freezer, this can be a good time eat through your stash and then stash the grocery bill savings.

Eating through your pantry will not only save you some money on the groceries, but it will also free up room for Christmas food and you can reduce waste on forgotten items lurking in the back of the pantry.

Another option is to take steps to reduce your grocery budget over the next few weeks. For example, you could eat more vegetarian meals, look for extra-budget-friendly meals made from frugal ingredients and switch to cheaper brands for a while.

Don’t forget, if you do reduce your grocery bill, put your savings towards your Christmas fund.

Or, if you are entertaining this year and need to feed a crowd, you can start buying a couple of non-perishable or freeze-able food items each shop to spread the cost of the Christmas feast out. You can double the savings by buying these things when they are half price!

5. Sell your Clutter

One of the fastest, easiest ways to raise some extra funds quickly is to sell your unwanted clutter on Facebook marketplace or Gumtree.

For tips on how to sell your second-hand stuff, check out:

• Make a motza at your next garage sale; and
• 10 Ways to sell your stuff

We all have clutter we can get rid of. Your clutter can be someone else’s perfect Christmas present on a budget!

6. Overtime

Not every job offers paid overtime, but if yours does, it can be a great way to earn a little extra over the weeks leading up to Christmas.

Alternately, and depending on your current working hours and family life, you may be able to look for a Christmas casual position in retail to make some extra cash. There are a lot of short-term casual jobs at this time of the year, which can be a great way to earn some extra cash.

7. Downgrade, Cancel, Pause, Switch and Save

The modern world is all about subscriptions and memberships. How many do you have? Not judging – we have an embarrassing number of subscriptions.

The question is, do you need/use all of them? Can you pause some for a few weeks?

Are you able to pause your gym membership, Netflix (can be paused without cancelling for up to 3 months) etc.

Can you downgrade your membership ie, is there a plan for less devices etc?

Are you able to switch utilities for a better deal?

Pausing, cancelling, downgrading and switching your subscriptions temporarily (or permanently) can give your Christmas fund a boost.

8. Use up Old Gift Cards

Do you have gift certificates lurking in your wallet? Maybe a birthday present or even a gift certificate from last Christmas?

Now is the time to search the house for forgotten gift certificates.

It’s not the most fun way to spend your own gift cards, but it can help keep you out of debt.

9. Gig Local

Starting a side hustle right before Christmas is not a realistic way to earn some extra cash, but offering to do odd jobs for others definitely is.

Do you have friends you can babysit for? There are a lot of people needing babysitting while they attend Christmas functions.

Can you put an ad in your local paper for yard work or cleaning? A lot of busy people need their house cleaned for guests and entertaining at this time of the year.

Are you good at building kid’s bikes? Or putting together Ikea stuff? Maybe you can offer your services on Airtasker and save people Christmas Eve hassle. And why not offer to store and deliver the gifts so the kids get no wind of it?

You could consider driving for UberEats for a few weeks. If you’re delivering food, you don’t need to worry about having strangers in your car. I have a neighbour who is an accountant by day and UberEats driver by night to make some extra cash.

This time of the year is super busy, so can you offer to run errands for people as a service to earn extra cash. Be a PA for a day, kind of thing. Let others avoid the Christmas shopping crowds by offering a personal shopping service. You can offer your services to friends or people at work, put an ad in the local paper or try a service like Airtasker.

10. Pay your Minimum for just One Month

If you currently have debt, then paying more than the monthly minimum means you will pay it off quicker, hurrah! But…

…in order not to dig your debt hole any deeper, for just one month, you could consider putting extra repayments towards your Christmas fund instead (of course, you should always consult a financial advisor to make sure this is suitable for your personal circumstances).

The idea is, once Christmas is over, you can get back on track with your regular debt reduction plan without having added to it.

And finally, don’t forget to start a savings plan for next year

When Christmas is all over, the presents are unwrapped, the turkey is stripped clean, and the leaves on the Christmas tree have started dropping all over the carpet, then it’s the best time to start saving for next year.

Don’t slap the messenger, but starting early helps.

Here’s the deal, if your Christmas budget is $500, then all you need to put aside a week is $9.60. That’s a lot easier than scrambling to find $500 at the end of the year. And putting it aside in a separate, no-fee account can help you from not spending it during the year.

Do you save during the year for Christmas? What are your strategies for finding some extra cash for the holiday season?