Gift Buying for the Financially Savvy: 6 Simple Steps to Spend Less & Reduce Holiday Stress
December tends to be a rough time of year to maintain financial health. There is often a lot of travel, a lot of nights out being jolly, a lot of holiday party invites that say “Dress to impress!” and, of course, lots of gift buying. Gifts get out of control fast. You may start with immediate family and then one thing leads to the next and you have a list of 85 people who all deserve a thoughtful, heartfelt (and spendy) gift by the end of the month.
Over the years I’ve developed a system to help keep the gift list in check.
Set your intention
I cannot stress this enough -- this is THE MOST IMPORTANT step. Before you start searching Pinterest for the perfect animal cruelty free ribbons, take a few minutes and answer this question: What is my intention for gift giving this year?
If that feels too overwhelming to start with, try answering the following starter questions instead:
How do I want to feel when giving each of my loved ones gifts?
Why am I getting gifts for people?
2. Make your list early (like now!)
Start with something really simple -- just a list of people you want to get gifts for.
3. Cull the list
Look back over that list and answer the following question for each person listed:
Why do you want to give them a gift? Some might be really easy (i.e. I love giving gifts to my niece because her cute little face lights up with joy!) and some might be tough (i.e. the doorman at my building is...well he’s not my favorite, but I see him every day and I feel obligated).
After you’ve answered that question for each person, go back to your intention you set and ask yourself if your answer for each person fits within your intention. If it doesn’t fit, cross them off.*
4. Start with a total budget for all of the gifts you’ll buy
Pick a dollar amount that you feel comfortable spending for all of your gifts this year. Whether that number is $250 or $2,500, make sure that it fits into your monthly budget (have questions about budgeting? Email me!).
5. Brainstorm gift ideas (don’t forget to include estimated prices)
Now starts the fun stuff! Brainstorm a gift that fits your intention for each of the people left on your list. Don’t forget to include estimated dollar amounts for each gift! When you finish, double check that the total amount is either the same or less than the budget you gave yourself in step #4. Don’t feel obligated to spend a lot -- the priciest gift isn’t always the best one. Here’s some ideas for thoughtful gifts that will help keep you on budget.
6. Cull the list again
It often happens that brainstorming gift ideas makes us realize that we don’t really want to get gifts for everyone who originally made the list. That’s okay! You can still cross them off now.
7. Keep a spending diary with you
We often come up with spending limits for ourselves, but don’t follow them. I recommend keeping a running list in your notes app on your phone that includes your total budget and how much you spend on each person. Keep a line at the top that includes the amount of money you have left to spend!
*If there is someone on your list that you truly are obligated to give a gift to you don’t have to cross them off. However, be honest with yourself. A lot of times we feel obligated, but really aren’t.