I usually have a lot of my Christmas shopping done by the end of September. It's not because I'm uber organized or anything 
-it's because I'm cheap. Or frugal, if you prefer.
Right now, the WalMarts, K-Marts and Targets of the world are clearing their shelves of older toys to make room for the huge influx of Christmas toys- so now is a great time to shop the clearance toy aisle.
It takes a while to sift through the jumbled shelves, but you can find some great deals, like Barbie walkie-talkies for $1! But be aware that prices are not the same at every store, even ones in the same chain. An item marked $7 at one WalMart might be $1 at a different one, so if you have time, check out a few stores and see which ones are most anxious to clear out their old merchandise quickly!
Remember the price scanner is your friend- things on clearance aisles are often mislabeled. Sometimes things are less than ticketed, sometimes they aren't on clearance at all but have been left there by other shoppers.
It's also a good time to stock up on summer fun items like inflatable water toys or pools at really low clearance prices. Put them away for next summer and save on next years' fun.
