Toshl Finance Blog

Christmas Is Coming!

There are two ways you can react to the title of this post. You can be joyful or you could start stressing out. According to research, the happiness and dread of christmas holidays are two of the most intense general feelings so we are getting ready for christmas a bit early this year.

Several researchers are noticing that christmas shopping is one of the most stressful events throughout the year and there are several reasons for the induction of stress – from money worries to the social pressure, from the feeling of urgency to the feeling of guilt.

We are offering some tips on christmas budgeting and gift planning which we hope will make the next festive season…well… festive!

45 days rule

It all starts with planning as we abide to the 45 days rule where you plan for events that are happening 45 days in the future. This rule has several beneficial effects:

Keep it together

First thing is that you are not under any pressure. I mean OK, you still do not know what to get for your aunt, but that will not change. Aunt Clarice is just a mystery to you and no amount of planning will change that. But other than that, you can rest assured that planning that far in advance will be less stressful compared to last-minute shopping.

Be thorough

By keeping it together and planning your christmas shopping in autumn, you can give more thought to your naughty or nice list. I mean sure, Santa probably has some hard-core elf algorithm working for him, but you can do the same thing by making a list and thinking it through. No fast reckless last-minute decisions!

Be thoughtful

The 45 days period gives you enough time to check if the planned gift really works for the giftee. Sure you can make some mistakes by planning a gift that later on turns out to be a complete fail, but panic buying in the first week of December increases that possibility many times over.

Toshl tip

You can set custom reminders in Toshl so that you will get a nudge when the time for planning comes. Also attached to the reminder will be a cute monster, specialized in friendly guilt-tripping if you do not obey.

Step 1: Make a list of people

This should be straightforward enough. Write down the names of all the people who are getting gifts this year. Separate them according to the nature of your relationship (that way you can be thoughtful of your business associates and partners as well) to help you decide on the nature of the gifts.

Toshl tip

We are a money tracking app so people are not our speciality. However, we have one tip – you can tag your expenses by person so you will know exactly how much are you spending on friends who do not return your phone calls.

Step 2: Make a gift list

You have to decide on the type of gifts you are giving out, whether these are customed per person, customed per type of relationship or general across the board. This will come in handy when you come upon a person that is on the receiving end but you are not quite sure what to give them.

Toshl tip

Did you know you can add different costs under the same name? Handy in-app calculator and currency exchanger helps you when entering gifts from foreign countries.

Step 3: Make a budget

Now you are ready for a budget. Use the results of step 1 and 2 combined with the general state of your personal finances to figure out the perfect amount you are going to spend this year.

Bear in mind that gifts are a predefined social norm and they are based upon agreements within a specific social group, so do not feel weird about planning them collectively. Asking someone what do they want for Christmas usually reveals surprising choices you have not thought of which are very often nicer on your budget.

Toshl tip

Toshl offers budgeting for individual financial goals where you can set budgets, create special accounts and notifications that tell you when you reach your goal.

Step 4: Get creative with wrapping paper

Every year we spend a ton of money on wrapping paper which then gets discarded promptly. Instead you can replace it with newspapers, plain boxes or other containers you already have. Stuff is getting recycled anyway, might as well use is appropriately. On the other hand, you can dedicate a special gift container for each person so that they can look forward to the same box (but hopefully not the gift) every year!

Toshl tip

You can track you current annual expenses for buying wrapping paper and then marvel at the savings when you switch to a more eco-friendly solution.

Step 5: Avoid Christmas sales

Yep. By planning your gifts in advance you will more easily avoid christmas sales which are bad for you. Worse than smoking!

By participating you are actually doing more harm than good – you are participating in a hysteria-inducing event which makes you blind to the fact that a) the prices usually go up just before the sales b) items on sale are usually not the latest editions and c) you are caught in a whirlwind that causes you to buy things you really do not want or need.

Toshl tip

By planning for Christmas in advance you might realise you actually have the extra cash to spend on Christmas Sales. You can also set individual budgets for the sales or marvel at the savings by ignoring them completely.

There are also other ways to save on Christmas shopping. You can focus on meetings rather than things or organize a christmas recycling exchange. You can also pull the break and go frugal or change the ways you pay attention to people during the holidays.

Posted in Budgeting, Tips & Tricks