Back in the normal days, I used to plan my Christmas and end-of-year gifts well ahead... in September at the latest. I would set a budget and always keep myself within the set numbers. Recently, and especially in 2020, most of us were forcefully confined and I couldn't travel the way I used to. So I had decided not to buy any gifts. I also informed my family of my decision by the end of November. Little did I know that my resolve would change in a snap. See, when the lockdown was imposed for another 2 weeks, I decided to occupy myself by decorating. And I dragged up all the deco boxes from the basement to set up the tree... and I started planning for the gifts. As usual, I prepared a list, set a budget, and tadaaa the gifts were purchased and I felt relieved.

So here are the steps that I follow and that help me stay in control:

1. Check cash/credit availability and start early on. It's better to buy gifts a couple of months before the holidays... or right after the holidays for the year to come.

2. Set a budget and a total amount to your spending. Remember that you need to keep it reasonable at all times. Review the budget and delimitate the expenses, even when you can afford them. After all, the holiday joy lies in the gatherings rather than the material things.

3. When it's about kids, we all tend to want to get them super branded expensive items... when they, mostly, don't care about fancy stuff. Re-adjust your list accordingly.

4. Gift wrapping paper or boxes can be very costly. I personalize my gifts wrapping them with ribbons, recycled paper, and customized cardboard boxes. It does make a difference! 

5. Use those miles/points/credit surplus that you have accumulated to save or benefit from supplier deals.

Now after the holidays, once the rush is over and we start getting back to our normal lives, here is what you can do to avoid stressing out financially:

1. Assess your financial situation thoroughly: did you keep the budget line you had planned? If yes, there is no need to worry. If not, rationally note every single time you exceeded the set limit.

2. Learn from mistakes for future gifting purchases: you can assess future expenses from ones already made, and maybe you would want to take advantage of post-holiday sales or remain alert to items on sale during the rest of the year.

3. Check if certain gifts you have received and that you do not like can be returned to the store or exchanged for items you actually want and would use.

4. Sell items that you have no use for or that you don't want to keep. There is no good in hoarding things that will gather dust in your home.

5. Be gentle with yourself. It's ok if you spent more than you wanted to. Balancing a budget is a learning curve and if you plan early, next time, you will do better!

I will finish this article with a quote by Ralph Waldo Emerson: "Finish each day and be done with it. You have done what you could. Some blunders and absurdities no doubt crept in; forget them as soon as you can. Tomorrow is a new day. You shall begin it serenely and with too high spirit to be encumbered with your old nonsense".

Feel free to comment or ask me about what I have briefly exposed. I would love to hear from you!

Link to Financial literacy blackboard