Setting Your Holiday Budget
⚠️ WARNING: This post has unfiltered content ⚠️
It’s the first week of November and we are already being inundated with “Black Friday Deals”. I want to scream and tell these organizations that Black Friday is still weeks away. This year is seems as though we have completely skipped fall and Thanksgiving, and we are going straight to the materialism of Christmas. I don’t like it!
Retail organizations are really good at applying pressure to purchase more products by making you think everyone is buying it and they’re doing it right now, so you better get it before it’s gone. If you’re feeling that pressure this year and you want to push back against consumerism to focus on creating a holiday season that benefits you and your family, then continue reading.
Holidays
Let me start by saying, I love all of the holidays that come with fall and winter. I love Thanksgiving as we gather around the table with friends and family to pause and reflect on the many blessings in our life. Even if we feel the effects of high inflation and reduced cash in our wallets this year, we still have so many other things to be grateful for.
Additionally, I love Christmas and celebrating the birth of our Savior with friends and family around the tree, in a candlelight service, or around a campfire. However, I do not love the pressure to buy gifts and add to our stack of “rarely utilized things.” It’s important that we do not fall into the trap of purchasing gifts out of obligation. That can be a very slippery slope.
A Slippery Slope
It is natural to feel the pressure to purchase gifts for all of your friends and family that you care about. Often the pressure can be because of wanting to show love, wanting to fit in, wanting to be socially correct, or simply wanting to make people smile.
Two things I’ve learned over the years is that 1) most people do not remember what you bought them last year, and 2) an expensive gift does not equal a great gift. We’ve convinced ourselves that to get someone a good gift you must spend a decent amount of money (I get it…June’s inflation rate was 9.1% according to Statista).
It’s easy to feel the pressure to increase your gifting budget to one you can’t afford. In fact, it almost feels required. And we all know what happens when you spend more than you make…you end up using a credit card.
Maybe it wasn’t a huge deal when credit card rates were at 6%, but this year the average credit card interest rate is 22%. This year can be different. You can make wise decisions that benefit your family in the long run!
A Solution
As we approach Christmas - traditionally a gift giving holiday - it’s important to set a spending budget and stick to it. If there was ever a year that you do NOT want to overspend, it’s this year. With the cost of products higher than usual and interest rates at their highest in years, now is the time to spend within your limits.
Debbie Allen said, “Out of limitations comes creativity,” and I couldn’t agree more. It’s in those times of limitation that we must become creative. Instead of large expensive gifts, think meaningful and personalized.
MEANINGFUL: We all know that the most precious commodity is not the latest and greatest gift out there, instead it is time. In the marketing world the #1 goal is to capture attention so you can have a few seconds of their time. The crazy thing is that most people are so busy on a daily basis, they don’t stop to genuinely appreciate the relationships they have in their life.
When you give someone your time (whether in person or in your efforts) it makes an impact. So this season, take the time to write a card telling someone how much their relationship means to you. Share a recent encounter you had with him or her and tell them how it made you feel. The recipient will feel valued because you gave up your time to make it happen!
PERSONALIZED: Giving a personalized gift requires knowledge of what a person likes, and it makes a person feel understood. Personalizing a gift has become so easy and cost a lot less than you can imagine. Personalizing takes time, but not as much as you’d think. Mpix has personalized playing cards for your game loving friends. Personalization Mall has everything from a personalized portfolios for the professional in your life to personalized stocking stuffers under $20. Ask yourself what ordinary item the recipient would find useful, then personalize it. The recipient will feel loved because you understood them and their preferences.
You Win
When you create a spending plan and you stick to it, you win! You aren’t paying more than you can afford, you aren’t wasting money on interest charges, and you aren’t stressed over your finances. You can enjoy the holidays with your friends and family knowing that you were able to provide meaningful and personalized gifts without your family suffering the consequences of overspending. You never know, you may start a new tradition of actually looking forward to the holiday season!
If you have questions about tax efficiency or how you can maximize your generosity while receiving the best possible deduction, give us a call! We can help you create a charitable giving strategy and increase your impact. Check out our Charitable Giving Playbook for more information.
