5 Signs You’re Spending Too Much on Gifts
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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If you’re a person who enjoys giving gifts, there are plenty of occasions throughout the year to part with your hard-earned cash. While it’s wonderful to make these gestures, your generosity could be putting you in a tight financial spot.
From holidays to weddings, birthdays and other milestone events, it’s all too easy to get caught up in the pressure to spend.
While you don’t have to stop being thoughtful toward others, here are some key signs that you’re spending too much on gifts of all kinds.
You Haven’t Made a Budget
If you’re buying gifts without any kind of budget, be that an actual gift-related savings fund, or a miscellaneous fund you can draw from each month without dipping into money for necessities, you could be in trouble. Budgeting does not have to be complicated or hard — it’s just a way of tracking what comes in and what goes out. Without a budget for these extra items, it’s very easy to overspend.
You’re Buying for Every Occasion
A key sign that you’re overspending on gifts is if you’re buying them for every occasion. If you come from a big family, have a large circle of friends or belong to any sort of workplace or group that encourages gift-giving you might find yourself constantly being tapped to buy something. While it’s lovely to celebrate birthdays, promotions, holidays and other life events, there are numerous ways to do this without spending a lot of money.
Consider DIY gifts instead, low-cost experiences (such as a hike, a picnic, a matinee) or just showing your care and concern with a thoughtful card.
You Buy Gifts ‘Just Because’
You know what it’s like to be in a store and see just the perfect item for someone you love. Knowing that a future gift-giving event is likely to arise, be that their birthday or the holidays, it’s easy to impulse buy right then and there for “someday” or “just because.” Unfortunately, this kind of shopping often falls outside your budget or necessities. Be strategic about shopping for gifts instead, with firm limits on how much you can spend before you leap at a cool thing you just happened upon.
You’re Putting a Lot on Credit Cards
There’s more pressure to buy gifts in today’s influencer-heavy culture than ever before. Curated social media feeds showing friends celebrating lavish birthdays or holiday parties can easily lead to a sense that you have to keep up with others in this regard. If you’re doing so by always putting gifts onto your credit cards, and not paying them off each month, you’re spending more than you can afford on gifts.
You’re Tapping Into Emergency Funds To Pay For Them
If you’ve managed to build up a solid emergency fund of three to six months’ worth of income, it’s tempting to see that cash as disposable, since you aren’t using it. If you find yourself drawing from this, however, for gifts, you are, in fact, borrowing from your own future and overspending. Emergency funds are ideally there to buffer you during hardships such as job loss, unexpected expenses and true emergencies.
Limiting how much you spend on gifts doesn’t mean curbing your generosity or thoughtfulness — be creative to show the people in your life that you care about them, without putting a dent in your bank account.
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