How to Set a Realistic Gift Budget
During the holiday season, people spend huge sums of money on gifts without having second thoughts on affordability. It is also a period where substantial spending can be justified in the name of giving and the spirit of Christmas.
While buying and giving gifts can be self-fulfilling, it may also cause many people to embrace debt when the new year begins. Thus, unrealistic gift buying could become a financial burden and an unnessary stress.
Importance ofbudgeting gift buyingfor the season
It is essential for anyone who spends substantial amount of money on gifts during the season to budget his or her expenses with adequate time to spare. Budgeting can not only keep track of holiday spending but also allows you to think how you can finance expected holiday expenses. Developing and sticking to a gift budget involves some meticulous planning, realistic thinking and motivation.The following tips can help in setting up a gift budget and avoiding debt in the new year.
Making a list
Start preparing a list of people who should receive gifts during the holiday season. This list may include family members, friends, co-workers, etc. The challenge will be to keep the list as short as possible.You may have to consider including only those who are close to you. At the same time, do not wait until the last moment to prepare your list. Keep some room for last minute entries.
Determining a safe spending limit and ways of spending
You should know the amount of money that can be spent on gifts during the season. This need not be an exact figure but a rough estimate depending on overall earnings, savings, spending and financial objectives. At the same time, ideally choose only to use cash, debit cards and cheques when buying gifts during the season for minimum impact on debt. Use of credit cards should be avoided at all costs, as they can push you through your limit and entice you to break the barriers imposed by the gift budget.
Leaving enough time to make the best buy
It is necessary to plan for purchasing your gifts and where you will shop. If properly planned, you may be able to buy the same gifts for a much lower price from different places and through various seasonal offers. Such offers may crop up from time to time and may not only appear just before the holidays. At the same time, the frantic buying that takes place closer to holidays may not allow you to choose the best buy. You may end up with a different and costlier gift than the budget allows.
Be cautious at the last moment
Lastly, it is rather difficult to prepare a holiday gift list that is complete until the last minute. In instances of late changes, keep an eye on the totals and do not allow them to fall beyond what is financially feasible if your gift budget is to achieve its intended objective.
