Staying on budget while doing your holiday shopping sure is hard sometimes. Ever see something you’d like to gift someone but it’s just way too much? Been there, bought it, and instantly regretted it after seeing the bank statements roll in.
Shopping for Christmas can be financially stressful but it doesn’t have to be. In today’s blog post I talk about how I’ve budgeted my holiday shopping for the past nearly ten years. Tried and true, I promise it can help keep you on track. And no, it’s not about starting your Christmas shopping early or saving a toonie every week into an account (although both of those might help, too).
Pin for Later: How to Stay on Budget While Holiday Shopping
Make a List of People to Buy For
First things first, you need to know who you’re buying for. Include everyone. That means children’s teachers, the neighbours – literally anyone you plan on giving a gift to. And don’t forget to add in any gift exchanges you might be part of!
Once you have your list, leave it for a few days and then go back to it. Chances are, someone will pop into your head that you forgot and you can add them in before you begin hitting the stores.
After a list has been created, what I like to do is put them in order of closest to me to least. Meaning my partner and parents are always at the top and then I work my way down ending with friends who I might see at a dinner party who’s gift won’t be a large purchase.
Set a Budget
Set a budget but be realistic. There’s no point in setting a $1000.00 budget if you don’t have the funds. I learned to do this back when I was in university and really only had a few hundred dollars to divide amongst 10 people. Boy were those days interesting. But the point here is to set yourself up for success. Use funds that you already have, not including an easily accessible credit card – that defeats the purpose.
Work within your means and you won’t be left crying after the holidays wondering why your Visa bill is so damn high and thinking about what you even bought.
After I’ve set my budget (for the sake of this post, let’s say our budget is $500.00), I go down my list and assign a dollar amount to each person. You can do this a bunch of ways but how I’ve always shopped was that I spent a little more on my husband, parents and brothers, and then worked with lesser amounts for anyone else on the list.
Here’s any example of what I mean:
The first number you see in brackets is the total amount I’ve allocated for that one individual and that number should include tax. Meaning if I see a gift for $49.99 it’s technically over budget because with the tax, the total becomes $56.48 therefore making me $6.48 over budget. Which in reality isn’t a lot but when you multiply that over the rest of your list, you can be spending an additional $100.00 that wasn’t included in your budget! If the amount allotted for an individual is $50.00, you should look at gifts around $40.00 to help account for taxes to keep you on budget.
Once I’ve purchased my gift for a person, I put the exact amount I spent in the second bracket so I can go back to it after and see how much I ended up sending on each person and what the total was. I’m sure there’s plenty of budget apps and such that can help you do this, but this is my way of the old school version of pen and paper!
Have Some Wiggle Room
Now, with all that being said, there have been times I’ve gone a little over here and there for one person or the next, but that’s where accounting for the taxes comes into play. If you’re under budget for one person by $5.00 taxes in, that means you have five additional dollars to potential spend on someone else if you find something that you really love and need to get.
I always do my best to stay within my means but sometimes it happens where you go a little over. Do what you’re comfortable with and what you can afford!
Get Created & Have Fun
Sometimes when you’re working with a tight or smaller budget it means you’ll have to get a little creative and maybe think outside the box. Sometimes it gets fun, sometimes it can get tricky. My best advice is to start your shopping early. That allows for you to purchase things before everything sells out and gives you better options for working within your budget.
If all else fails and you really can’t find anything within your budget, try gifting a handmade gift. Get creative and make something from the heart. Some of the best gifts I’ve received have been crafts made by my loved ones which probably didn’t cost them very much to make! Plus, a handmade gift is a gift from the heart and you can’t find that in a mall! If you have a little one, try making this DIY Baby Feet Mistletoe that you can gift to family members!
Enjoy the Process
If you start early and stay within your budget, you’ll find that shopping for the holidays doesn’t have to be so stressful or even mundane. I loved getting my shopping knocked out early and getting everything wrapped to enjoy seeing it all under the tree. Plus, staying within budget makes it easier to enjoy when it’s December 26th and you still have money left!
