Give Great Gifts Without Blowing Your Budget

by WiredBerries Editors — December 5, 2007

The holidays are a time of year when many of us tend to have difficulty balancing our giving natures with our checkbooks! However, it is possible to give great gifts and still have money for rent come January. Here's how:

• Determine how much money you have and are willing to spend on gifts. This includes figuring out how much available cash you actually have right now, and how much you can reasonably allocate towards holiday gift giving.
• Make a list of everybody you are shopping for. Having an actual list saves time and money and keeps you from worrying about whether you forgot someone.
• Determine a target price and maximum price for each individual. For example, you'll probably allocate more for your significant other than for your co-worker. Also, having a range can keep you from making an impulse buy in the event that you come across something appealing, but over-priced. Example: Aunt Tammy- Target $30 Max $55.
• Don't buy on credit or with "convenience checks" unless you're doing it to earn sky miles and have the cash to pay off the balance before financial charges accrue. There are good reasons to go into debt, but holiday shopping is not one of them.
• Consider sentimental gifts for close friends and family. For example, a $20 framed picture of the grandkids might well mean more to grandma than a $200 gadget. Look over your list and see where a sentimental gift might be more appreciated and less expensive than a product with no emotional appeal. By the same token, homemade gifts (for those who have the time, hobby, or inclination to do so) can be a meaningful way to let a loved one know they're worth some special effort.

"Every gift from a friend is a wish for your happiness."
~ Richard Bach