Fall is upon us…let’s enjoy but think ahead with a 7-step plan for holiday gifting without the debt!
Are you feeling it? That little nip in the air...the weather is cooling and Fall is here! And with Fall, you know what’s next...the holidays. It's coming up fast. Can you imagine being able to afford it all this year without going into debt? But how??
So many of us get caught in this well-intentioned trap. The holidays are here, and we want to show our friends and loved ones our appreciation through gifts. Gifts are fun! But many times we get carried away and spend too much. The ads we see and hear online and in the media encourage us to buy, buy, buy. Is it any surprise that we go beyond our budget?
Let's make a plan this year:
1) Start by identifying those gift-giving holidays coming up for you. What are the dates?
2) How much can you comfortably spend and/or save between now and then? This amount should not rely on a credit card unless you can pay the balance in full at the end of the billing cycle, not rely on a loan, Buy Now Pay Later services, etc. This amount becomes your gift-giving mini-budget.
3) Who is on your gift-giving list? Here's a template to get started.
4) Determine how much you can spend on each person. You'll need to divide your comfortable spending amount across each person on your list and really consider what makes the most sense for your budget. It's not worth going over your amount and being in debt in January, and no one wants this for you either, so be honest with yourself about what you can/can't afford.
5) What gifts will be most appropriate for each person? For those on your list, consider the following:
What does this person want or need? What would make their lives easier? Remember that not all gifts have to be expensive. Very thoughtful gifts might include a gift card to a favorite local juice bar, bagel shop or coffee drive-thru. Not pricey, but a nice treat for someone who’s on their way into the office.
For some of those on your list, maybe it makes sense to try asking 'do you want to exchange gifts this year, or perhaps we can go have a nice dinner together to celebrate the holiday'.
Consider gifts of experience...many people have all they need and are not looking forward to receiving another 'thing'. What about movie tickets and popcorn, an invitation to the local museum, or a boat ride and drinks on your local lake?
Do you have a large family or friend network? Have you tried a gift exchange, where everyone's name is dropped into a hat and each person picks just one of the names for gift giving? You probably have, so here are some more fun gift exchange ideas.
Like to create? Maybe there's something you make very well that would make a good gift. I like to make (and receive!) caramels, cookies and treats. Here are some more DIY ideas (that are actually interesting).
6) Now that you've considered a few ideas, what does your gift-giving list look like now? Update your list with your new plan. And don't forget to shop around for those gifts to get a good price! You can use your Notes column to track your thoughts and ideas.
7) Update your overall budget with this new 2023 Holiday Gift category to track this new goal. You should aim to allocate a little bit from every income source to stretch out this goal between now and then.
Stick to your budget and you'll be on your way to a debt-free holiday!!!
Need help? Schedule some time with me to discuss your needs!