Lesson 46: Gift Giving
Hello Revolutionists,
This is a big week for your finances. You are going to decide who gets a gift this year. You are going to get creative and seek out different, interesting and affordable gift ideas (the Tip Store has some wonderful ideas) and you are going to deliberately save money by spending less when you shop. Then you are going to take those savings and put them straight into your Emergency Fund, because money isn't really saved until it's safely in the bank. Until then it's just not spent.
Gift giving is a very emotional isssue. Some of us determine just how much we are loved or love by the gifts we receive and/or give - the bigger and more expensive the gift, the greater the love. That isn't true. If you think that way, stop right now.
If you have family, friends or colleagues who are spending lavishly and probably beyond their financial limits, getting into debt this Christmas doesn't mean you have to do the same. On that note, if you haven't joined the Own Your Christmas Countdown yet you still have time.
Imagine the pride you'll feel on Christmas morning when you actually own all your gifts, decorations and food, especially when those around you will be paying for their celebration many times over the next twelve months.
Creating a Gift Giving Budget
When you decide on your Christmas gift budget the first thing you need to decide is who you will be giving gifts too. Use the Christmas Gift List printable to create your list. Start with mum and dad and end with the school crossing supervisor, your postman and your garbage man (if you intend on giving them gifts). Put down every possibility, it's much easier to go back and cull the list than it is to add someone in once the money is allocated. Using the Christmas Gift List makes this so much easier.
Write the name and gift idea on the list, then tick whether it's going to be made or bought, how it will be delivered and the budgeted cost. Then add up the Cost column to see if you can really afford to give these gifts to the people on your list. If the total exceeds your allocated amount, go back over the list. Reduce the amount you plan to spend on each gift. This should bring your gift list in line with your Spending Plan.
If you are worried about expectations let everyone know you're celebrating on a plan this year. It might be something like "I'm trying to organize my finances so this year I've been concentrating on eliminating debt (saving an Emergency Fund, house deposit, retirement fund, new car fund, school fee fund or whatever). I have a Spending Plan in place and to keep on track I've had to institute some financial boundaries. This means that this year I'll be reducing the amount I spend on gifts. I hope you understand and support me so I can achieve my goal."
Don't be surprised if you literally hear the sighs of relief as they not only support you but join you in your efforts to get Christmas spending under control.
If reducing the amount you spend on gifts still doesn't bring the cost into line, it's time to eliminate names. Send them a card with a personal message in it, or you and your spouse may decide not to give each other gifts and put that money into the gift giving budget. Whatever you do, you need to get the total in line with your allocated money.
As you make notes on your list, think about the person you are giving too. For instance Aunty Mary loves needlework so perhaps looking for a sale on beautiful embroidery cottons or linens or even patterns would make a wonderful gift for her. Uncle John loves Mini Minors and collects them. Giving him a model of a mini, that he can use as a paperweight or decoration would put a smile on his face. Because you know their likes and hobbies, you can start looking for the perfect gift now and you'll have a much better chance of finding it under budget.
Buying Inexpensive Gifts
Though you have an amount allocated for each gift, you don't need to spend that amount. By starting your gift buying and making early you have the opportunity to find exactly what you want on sale. If you leave it until the last minute you will be forced to pay top dollar or even worse, have to look for something else because you can't find what's on the list.
Remember: just because you've allocated $15 for your nephew's gift, doesn't mean you must spend $15. If you find his gift for $12, great! You don't need to then go and spend the remaining $3, you've bought the gift and under budget.
As you are shopping, pay careful attention to the amount you are spending. Cross every purchase off your list as you buy it and record exactly how much you have spent. You want to be able to sit back on Christmas Eve, content and relaxed, presents bought and paid for in full, without any additional debt.
Once you've added up the amount you've spent, shift the leftover money into your Emergency Fund and give it a little boost.
This week may well be your first venture into Christmas shopping with a plan and a dedicated budget. Enjoy the experience. It will not only make a difference to your financial plan, but it makes economic sense and is a lot of fun - who doesn't enjoy picking up a bargain?
The best thing about this week is that it won't stop at Christmas shopping. Now you know how to shop for gifts, you can do it all year long. Gifts need to be bought all year through - there are birthdays, new babies, engagements and weddings and housewarmings happening all year long. You don't want to blow your gift budget on anyone's gift, so shop like it's Christmas every time you go gift shopping all year long.
Week 46 Challenge: Start your Christmas shopping with the aim of deliberately spending less for each gift. To do this go through the junk mail, looking for special offers and bonus deals. You might also find great bargains in your inbox and at this time of year shopping online is a great convenience, saving money, time and energy.
This is a big week for your finances. You are going to decide who gets a gift this year. You are going to get creative and seek out different, interesting and affordable gift ideas (the Tip Store has some wonderful ideas) and you are going to deliberately save money by spending less when you shop. Then you are going to take those savings and put them straight into your Emergency Fund, because money isn't really saved until it's safely in the bank. Until then it's just not spent.
Gift giving is a very emotional isssue. Some of us determine just how much we are loved or love by the gifts we receive and/or give - the bigger and more expensive the gift, the greater the love. That isn't true. If you think that way, stop right now.
If you have family, friends or colleagues who are spending lavishly and probably beyond their financial limits, getting into debt this Christmas doesn't mean you have to do the same. On that note, if you haven't joined the Own Your Christmas Countdown yet you still have time.
Imagine the pride you'll feel on Christmas morning when you actually own all your gifts, decorations and food, especially when those around you will be paying for their celebration many times over the next twelve months.
Creating a Gift Giving Budget
When you decide on your Christmas gift budget the first thing you need to decide is who you will be giving gifts too. Use the Christmas Gift List printable to create your list. Start with mum and dad and end with the school crossing supervisor, your postman and your garbage man (if you intend on giving them gifts). Put down every possibility, it's much easier to go back and cull the list than it is to add someone in once the money is allocated. Using the Christmas Gift List makes this so much easier.
Write the name and gift idea on the list, then tick whether it's going to be made or bought, how it will be delivered and the budgeted cost. Then add up the Cost column to see if you can really afford to give these gifts to the people on your list. If the total exceeds your allocated amount, go back over the list. Reduce the amount you plan to spend on each gift. This should bring your gift list in line with your Spending Plan.
If you are worried about expectations let everyone know you're celebrating on a plan this year. It might be something like "I'm trying to organize my finances so this year I've been concentrating on eliminating debt (saving an Emergency Fund, house deposit, retirement fund, new car fund, school fee fund or whatever). I have a Spending Plan in place and to keep on track I've had to institute some financial boundaries. This means that this year I'll be reducing the amount I spend on gifts. I hope you understand and support me so I can achieve my goal."
Don't be surprised if you literally hear the sighs of relief as they not only support you but join you in your efforts to get Christmas spending under control.
If reducing the amount you spend on gifts still doesn't bring the cost into line, it's time to eliminate names. Send them a card with a personal message in it, or you and your spouse may decide not to give each other gifts and put that money into the gift giving budget. Whatever you do, you need to get the total in line with your allocated money.
As you make notes on your list, think about the person you are giving too. For instance Aunty Mary loves needlework so perhaps looking for a sale on beautiful embroidery cottons or linens or even patterns would make a wonderful gift for her. Uncle John loves Mini Minors and collects them. Giving him a model of a mini, that he can use as a paperweight or decoration would put a smile on his face. Because you know their likes and hobbies, you can start looking for the perfect gift now and you'll have a much better chance of finding it under budget.
Buying Inexpensive Gifts
Though you have an amount allocated for each gift, you don't need to spend that amount. By starting your gift buying and making early you have the opportunity to find exactly what you want on sale. If you leave it until the last minute you will be forced to pay top dollar or even worse, have to look for something else because you can't find what's on the list.
Remember: just because you've allocated $15 for your nephew's gift, doesn't mean you must spend $15. If you find his gift for $12, great! You don't need to then go and spend the remaining $3, you've bought the gift and under budget.
As you are shopping, pay careful attention to the amount you are spending. Cross every purchase off your list as you buy it and record exactly how much you have spent. You want to be able to sit back on Christmas Eve, content and relaxed, presents bought and paid for in full, without any additional debt.
Once you've added up the amount you've spent, shift the leftover money into your Emergency Fund and give it a little boost.
This week may well be your first venture into Christmas shopping with a plan and a dedicated budget. Enjoy the experience. It will not only make a difference to your financial plan, but it makes economic sense and is a lot of fun - who doesn't enjoy picking up a bargain?
The best thing about this week is that it won't stop at Christmas shopping. Now you know how to shop for gifts, you can do it all year long. Gifts need to be bought all year through - there are birthdays, new babies, engagements and weddings and housewarmings happening all year long. You don't want to blow your gift budget on anyone's gift, so shop like it's Christmas every time you go gift shopping all year long.
Week 46 Challenge: Start your Christmas shopping with the aim of deliberately spending less for each gift. To do this go through the junk mail, looking for special offers and bonus deals. You might also find great bargains in your inbox and at this time of year shopping online is a great convenience, saving money, time and energy.