Christmas Eve is six months from today!  How is your planning going?

No need to stress quite yet, but here are a few things to think about:

Now is the perfect time to establish your holiday budget.  I like to plan everything from Halloween on (since I spend a lot on Halloween candy).  If you host Thanksgiving, that should be in the mix.  Same if you host a New Year's Open House or an Epiphany party.  The budget should include everything:  gifts, cards, postage, special clothes, wrapping paper, decorations, party costs, holiday meals, travel, etc. It's not a bad idea to add a 10% contingency, just in case. 

After you have established the budget, make sure it's realistic.  Can you actually save that much money?  Spreading the saving over several months certainly helps, but in the current economic situation it may not be feasible or wise.  So, look at ways to economize.  Talk with family and friends about setting limits on gifts.  Perhaps you can give a family gift rather than separate gifts to each member.  A group of friends can substitute a shared experience for a batch of gifts.  You can agree to make gifts or even (you'd better sit down for this) not give gifts at all.  If you striggle every year to buy a gift for someone, they may be happy to agree to a joint cessation of gift-giving.  You can send fewer cards.  You can decorate or entertain less elaborately. 

Look at what you'll need to do and plan accordingly.  The one thing you must not do (especially in this economy) is to rely on credit for your holiday budget.  If you don't have it, you don't spend it.  Simple as that.

Other things it's handy to think about now:

1) As summer weddings and moves (new graduates, moving when the kids get out of school, etc.) happen, update your card address list.  That way you don't spend half of December trying to remember if she changed her last name and if you can find the change of address card he sent.

2)  If you can decide your travel now, you can buy your tickets with maximum choice of seats and at great prices.  Some sites (like Orbitz) even offer price assurance, so if someone else gets the same flight cheaper, they'll refund the difference to you.  If the costs are high, consider travel insurance — just in case.

3) If you plan to make some gifts (apart from baking), start planning now.  The lazy days of summer may be the best time to knit that sweater, make the jewelry, or compile the scrapbook.  Some things can only be done in the summer.  Take advantage of seasonal produce to make jam and pickles or can peaches and tomatoes.  A basket filled with your home preserves makes a lovely gift and brings the summer alive in the depths of winter.

4) Cleaning out closets and drawers is always a good occupation.  More storage space and a tidier living environment make the holidays easier.

5) If you are vacationing this summer, keep your eye out for gifts. 

What are you doing to prepare for the holiday?