How much money did you spend on gifts last year? How did that affect your finances in the year that followed? The holidays are a time to spend on your loved ones. As such, you may end up spending more than you can afford on gifts. Using a credit card is a sure way to pile on debts, which could have devastating effects on your credit score. So what can you do to avoid such situations?

It all starts with understanding your finances. Yes, you can get your girlfriend or wife The Eternity Rose she has had an eye on for ages. Sure, it will be a show of your affection in so many ways. And it also means that you could forego getting your colleague those notebooks. It is a matter of prioritization, which will be worth it in the end. Here is how you can escape the gift-giving rat race:

Set a Budget

Remember, being on a budget is nothing to be ashamed about. Instead, it points to financial maturity. That you can put your foot down and declare that you only have two hundred dollars to spend. Not a dollar more, but you could do with a dollar less. Maybe you are financing a new home, or have lost a job, or the business is going through hard financial times. You are not alone in this, and there is nothing wrong with being true to yourself. So, how much can you afford this year?

Spread the Word

This point does not mean that you should let everyone in on what is happening. You have a right to privacy. Maybe you are going through a divorce, and the legal fees are unbelievable. Your next-door neighbor does not have to know what the situation is. Spreading the word is letting your confidants know that you cannot afford that vacation you did last year. It is about alerting people that things will be different this year.

You do not have to divulge all the details; talking about money can be uncomfortable. You can do with something like 'I am on a budget this year. So instead of getting all of you gifts, I will get you cards.' Letting people know early on will eliminate any awkward silences during gift-giving. Who knows? You may make someone brave enough to come out and state that they, too, are cutting back on gifts this year.

Choose a Recipient

Gift-giving among family and friends can be easy if you choose to draw names. You put down the names of the recipients, and everyone draws a name. It is an age-old tradition that dates back to the Golden Girls. Do you remember when everyone hoped that Rose would not draw their name? Sure, there are drawbacks to this method, but everyone wins. You come up with a budget, say ten dollars, and everyone has to stick to it. 

In this way, everyone gets a present, and you stick to your budget. Plus, it eliminates the feeling of guilt as there are guidelines in the process.

Buy in Bulk

Maybe drawing names is not a feasible idea, and you need to stick to a budget. In this case, you can buy everything in bulk. When purchasing items in large quantities, you get good discounts, and you ensure that everyone gets a gift. A good idea would be to get personalized mugs, which you can then fill with candy. 

Bond with Loved Ones

Maybe you are concerned with gifts, yet your loved ones would prefer seeing more of you than having presents. With busy lifestyles, losing touch with our friends and families can happen. Instead of focusing on gifts, visit your loved ones. Share memories and help them out where you can. Giving is not only material as you can give of yourself.

Gift-giving has become a norm that can often feel like a chore. Break the habit and work on managing your finances, especially when you are going through lean times. And when you can, gift your loved ones.