Spreading holiday cheer, giving thoughtful, memorable gifts, and sharing the beautiful joys of the season with loved ones shouldn’t have to cost a pretty penny.
Feeling financially pinched from gift-giving can suck the joy and warmth right out of your December. It can make cheerful Christmas music sound like the theme song from Jaws and turn you into a full-on Grinch (with better taste in shoes, of course).
Tell me if this sounds like you…
You have a big heart and you want to share it with the world.
Your preferred way of showing love and appreciation for others is through giving gifts.
You don’t hesitate to go into (sometimes serious amounts of) debt in order to give gifts you feel your loved ones deserve.
You enjoy gifting to others just as much as or more than receiving gifts yourself.
If I just wrote out your internal monologue come every December, you’re not alone. I, too, found myself in not-so-great financial shape in the past due to the above traits.
Today I’m revealing 4 ways to share your light with the world and celebrate your generous spirit – without going broke in the process.
P.S. Access my latest holiday gift guide – these fabulous gifts are ALL UNDER $30 with free 2-day shipping. You won’t break the bank and you’ll have time to wrap it before Christmas!
Step 1: Be honest with yourself about the discretionary income available for gifts
How do we determine how much of our budget (or “spending plan”, as I like to call it) to put towards Christmas gifts?
First, follow my proven “S-H-O-P” method to check off your “musts” for the month. (TL;DR: save, prioritize, invest, and pay down high interest debt.)
Just because the holidays are coming up does not mean we should neglect these important steps!
To be in even better shape financially after the last of the peppermint bark has been eaten, be sure to grab your copy of my free year-end financial planning checklist here.
Next, be honest with yourself and come up with a gift budget number. This dollar amount should be one that keeps in mind the law of diminishing returns for each gift recipient (I have a degree in Economics, I had to) and still allows you to sleep at night because you’ll still have enough money for rent in January.
If this brutally honest number is less than last year’s, so what? Let’s be frank – if your loved one knew you were going into debt to gift them a new air fryer, they probably wouldn’t accept it and demand you return it.
Step 2: Set a dollar amount limit per gift recipient
Personally, this practice has been my golden ticket to staying within my gift spending plan and having enough money left over to buy the oh-so-important New Year’s dress.
By setting a dollar amount to spend per person, you can get creative with what gift(s) add up to that magical number. Whether you spend $20, $50, or $1,000 (if so, can I come over for Christmas?), you’ll instantly feel accomplished simply by sticking to your magic number.
Style tip: This trick also helps me plan out my purchases and order gifts in bulk – and potentially receive a discount!
Step 3: Determine whether your loved ones value experiences over things
This step can help cut down your spending significantly in the weeks leading up to the holidays. While you may value gifts over experiences, it’s important to determine where your gift recipients fall on the experiences/things value scale.
Would they experience more joy from receiving a new handbag (which they may or may not even like) or the offer to treat them to wine at the new tapas place around the corner? How about a trial membership your cycle bar?
Don’t be afraid to throw in latte outings as well. Not only do you get to treat your loved one, but you get to spend time together (and who can put a price on that?).
Style tip: Going out for coffee will not prohibit you from becoming wealthy. I share my in-depth thoughts on the “latte factor” debate here.
If your loved one does enjoy and prefer a little something wrapped in red under the Christmas tree: Follow steps 1 and 2 above, and find them something in my holiday gift guide – all under $30!
Step 4: Large family or friend group to shop for? Consider a Secret Santa gift exchange instead.
I know many friends who share this tradition with their families. This gifting practice is perfect for large groups and can really take the stress and pressure out of gift giving.
Each family member focuses on giving a thoughtful gift to one other person in the group. To determine who gifts to who and ensure it all stays a secret until Christmas, names can be drawn out of a hat at a family gathering earlier in the year.
Instead of using up all your mental capacity on sending unique gifts to all 22 of your second cousins, everyone can focus on cherishing each other’s company and spending time together.
To wrap it all up in a shiny red bow…
Every gift – no matter what form it comes in – should make someone feel important and special.
When it comes to giving the best gifts, the thought really does triumph over the price tag. I promise on all things Prada.
What tips do you have for staying under budget during the holidays?
Xx, The Finance Fashionista
