- Jesi Bolandrina
- December 30, 2021
Are you feeling financial fatigue coming out of the holiday season? Even though the holidays come at the same time every year, millions of Americans put off saving and shopping until the last minute. This can ruin your December budget and start the new year off in a stressful financial situation. Instead of falling into a vicious cycle of spending and regretting, we have 1 key money tip that can help you save hundreds of dollars throughout the year and prevent you from falling back into a cycle of financial fatigue.
The Trick? Plan Out Your Presents and Gifts
Yes! That’s it! We’re talking about presents and gifts, not monthly bills. This might sound silly but in 2021, Americans spent an average of $998 on winter holiday gifts and expenses alone (that doesn’t include any of the other holidays or events throughout the year). Birthdays, anniversaries, house warmings, graduations…these are all causes to celebrate and buy gifts and, inevitably, spend a lot of money.
If you’ve ever made a budget, this process will be simple. We’re going to walk you through how you can plan out your presents and gifts throughout the year. If you follow this money tip, you will find time to pick better gifts and save up money so your finances aren’t constantly in flux.
Step 1: Make a List of Who and When
Spontaneous celebrations and events happen. But, for the most part, you know when to expect big events. The first thing you should do is sit down with a calendar and make a list of important dates. This list can include:
- Birthdays
- Anniversaries
- Life Milestones (Graduations, Retirement, etc)
- Holidays (Valentine’s Day, Mother’s/Father’s Day, Christmas, etc)
Make sure you also consider who would receive a gift on that day. This helps you figure out how many gifts you should expect to be giving throughout the year.
Making this list helps you get a clearer understanding of how frequently you’re purchasing and giving out gifts. If you’re only looking at a handful of names and dates, that’s okay. If you have a large family, you might be faced with a long list of gifts throughout the year.
Step 2: Decide on a Dollar Amount and Stick to It
Now that you’ve figured out your quantity of gifts, it’s time for you to try to set a budget by figuring out how much you can afford to spend on each gift. Some people might feel comfortable setting a flat price, (like $25 per gift for regular holidays and $50 for a birthday). Others may change their dollar values based on their relationship with the recipient (maybe you’re willing to spend more on your significant other for Valentine’s Day but then spend less on their birthday gift).
The purpose of this step of our money tip is for you to be able to start seeing an actual amount of money you might spend. It also helps you get a better understanding of when these expenses occur so you can plan ahead.
Step 3: Save Up Ahead of Expensive Gift Times
Making a list and deciding on gift values is great, but a key part of this money tip is to give yourself time to plan and budget ahead of time. You can (and should!) always be minimizing your monthly expenses, but you also need to save up more if you plan on spending more.
Here’s my personal example: I have a large family and there are 5 birthdays in the month of December. I usually put off buying gifts and then get caught up in trying to balance buying Christmas presents and gifts for these December birthdays all at the same time. This can force me to spend an uncomfortable amount of money in December, which usually leaves my wallet hurting in January.
If you sit down and make your list at the beginning of the year, you can save up ahead of time. It can also remind you to plan on what you want to buy. Deciding ahead of time can save you money in a variety of ways (from being able to avoid rushed shipping fees, to being able to shop for sales prices).
Is This Money Tip Really Going to Work?
If you use this tip, you can:
- Identify gift expenses before they happen
- Set a budget for these presents and gifts
- Get ahead of buying them so you aren’t rushed last minute
- Plan out your year so you aren’t draining your bank account
- Save time and money (and avoid forgetting a person or occasion!)
It’s great to be generous, but make sure you aren’t doing it at the expense of your own financial stability.
About the Author: Jesi Bolandrina is the Content Marketing Manager at Jobble. As a former gig worker, she knows how hard it can be to feel like you know what you’re doing in an ever-changing workforce. She’s your go-to for news and information from career development, to health and wellness, to finances and more. She curates Jobble’s blog, articles and is the editor of The Everyday Hustle newsletter. If you have any ideas for topics Jobble should cover, let her know.
