PFT #74 - Personal Finance Tip of the Week: Planning for Gifts in the Monthly Budget

This week’s topic is about planning for gifts in your budget.<br /><br />Right off the bat, think to yourself and ask when is the last time that I purchased a gift for someone. <br /><br />More than likely it has been in the last month. If not, that’s what most people average over the course of a year. <br /><br />When we think of gifting, it is often for the end of year holidays or birthdays; however, it goes way beyond that. <br /><br />Let’s think of other major events for most people to recognize such as Valentine’s Day, Mother’s and Father’s Day.<br /><br />From there, typically there is a cost for hosting or attending events related to the 4th of July, Easter, Thanksgiving, Memorial and Labor and Halloween.<br /><br />Lastly, don’t forget housewarming gifts, weddings and showers, high school and college graduation and anything else that I did not mention.<br /><br />Okay, now that we have our finger on the pulse or the “purchase button” on Amazon, gifts really begin to add up.<br /><br />The good is that this is easy to solve by simply creating a “gifts” budget. Create a spreadsheet and list who and what you are buying for and attach a cost. <br /><br />Once you have achieved a total, divide that by 12 to create an average monthly cost. In the months that you are under budget, store that money in a separate account and that surplus will be available in the months that are higher in cost. <br /><br />The bottom line is that gifts are hidden expenses in the budget that often get overlooked. <br /><br />The positive thing is that when you budget this way, it is almost a certainty that you will spend less from here on out relative to what you have spent in the past - and this is because you get a clear picture on what you want to spend rather than what you’ve spent in prior years.<br /><br />Website:<br /><br /><a href="https://www.somethingonmymind.net/" rel="noopener">https://www.somethingonmymind.net/</a><br /><br />Social Media <br /><br /><a href="https://www.instagram.com/somm.podcast/" rel="noopener">