How to Avoid Spending Too Much On Gifts

The holidays should not be about fender benders in mall parking lots, going broke on overnight shipping for last minute gifts, or racking up credit card debt. They should be about not fitting into your pants come the New Year.

Just kidding. (Kind of.) In addition to eggnog and star-shaped cookies, the holidays are about love and family and togetherness. And yet Americans are planning to pull out out their wallets early and often. A Gallup poll found that US adults estimate that they will spend about $885 on gifts in 2018, with a third of respondents planning to spend at least $1,000.

Now, add a little bit more to the balance sheet, since we tend to underestimate our spending. With big, tempting sales on every page of the internet, impulse buying and overspending are hard to avoid. In December of 2017, 24 percent of millennial shoppers reported they hadn't paid off their credit card from last Christmas.

Don't let this be you. Nix the stress of overspending by sticking to these guidelines.

Set a Budget

Credit Cards

Without an idea of how much to spend, the chances of overdoing it — oh, look at these cute elf-shaped pancake molds! — are as high-flying as Santa's sleigh.

Scott Hannah, head of the Credit Counseling Society, told Canada's Global News that a reasonable gift budget is around 1 percent of your gross annual income.

But if even that allowance seems too high, don't be afraid to slash it. Gifts aren't necessities, and there are a lot of variables and discrepancies that would make reasonable spending plans for families with similar incomes look very different, said Hannah.

Factor in Gift Wrapping

One budget line item you need to include is money for gift wrapping and cards. Those $5 letterpress beauties add up fast.

One of IKEA's best kept secrets is their holiday wrapping, and who doesn't love a classic and homespun brown butcher paper tied with a red yarn bow?

Make a List, Check It Twice

me & my BIG Ideas

Now it's time for the nitty-gritty. Make a list that includes: who you're buying for, what you're buying, and how much you'll spend in total. That last figure is key. It should equal roughly 80 percent of your budget, advises Chime, to allow yourself a little wiggle room.

Band Together

The perfect, perfect gift can sometimes come with a price tag that's beyond your budget. See if you can get a few relatives or friends to "go in" together on a special gift with you, advises The Spruce. The lucky recipient would surely rather have that Hudson Bay blanket they've always wanted instead of four smaller gifts they don't need or desire.

Nix "One for Them, One for Me"

Nearly 60 percent of people indulge in "self-gifting," reports the National Retail Federation, spending $130 on ourselves on average. When hitting stores for gift cards, 72 percent of shoppers report getting something for themselves before checkout.

Money-saving master Scott Alan Turner institutes a "no shopping on Amazon for yourself" rule for the month of December.

"If I want something, I can add it to my wishlist or ask for it for Christmas. Our rule also helps avoid splurging and spending less," he advises. "This is the season for giving, not receiving. If you find something you can't live without, add it to your wishlist. If nobody buys it for you, pick it up on sale after Christmas for yourself."

But….there are some killer sales right now and you really do need a new down coat. Far be it from us to say don't treat yourself, but be aware of how much you're spending on yourself when shopping.

Shop Early

Start now! Make your list! Make your budget! You'll be able to get the gifts you want sent via slower and cheaper shipping. The real crusher is when you wait and have no choice but to cough up for overnight shipping costs.

Don't Lose Your Mind With the Kids

Try Scott Alan Turner's rule of four: Give one want, one need, one wear, and one read.

Remember Your Intentions

Forgive the corny sentiment, but 'tis the season: it really is the thought that counts. This time of year, remember what's truly behind each gift you give.

"The point is to acknowledge that other person's positive influence on your life," writes Jennifer Wolf at The Spruce. "'Thank you' and 'I love you' are phrases that don't come with dollar amounts attached to them, so don't allow yourself to be caught up in spending more on holiday gifts than you can afford."

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Landscaping Options to Increase Your Home's Curb Appeal

Home garden and porch

As anyone who has ever sold a house will tell you, you must prioritize curb appeal. Before a potential buyer even considers looking inside your house, they notice the outside first. Does it attract the right kind of attention? Does it take away from the feel you're going for? If you plan to sell sometime soon, you must think about these things. Here are some landscaping options to increase your home's curb appeal, so you can get the best price on your home.

Extensive Plants and Greenery

A barren front yard won't get you the price you want on your home. So, invest in at least a little bit of greenery to keep the surrounding area from looking too dead. Shrubs and bushes tie the house to the lawn that precedes it, and flower beds bring a pop of color to an otherwise drab structure. You can also strategically plant some trees to improve the overall feel of your home's exterior.

Lawn Care

As we mentioned, your lawn is one of the most prominent features of your home's exterior. A patchy, dried-up lawn will quickly drive your home's price way down. Some of the best landscaping options for your home's curb appeal involve improving your lawn for the next inhabitant. Overall fertilization, ground aeration, underbrush removal, proper mowing—all of these lawn care tasks contribute to a greener and more lively area that invites people to see your house, rather than stay away from it.

Paved Pathways

There's nothing like a broken and disheveled pathway to make someone think twice about buying a property. Just as you want the entryway in your house to be welcoming, so too should the pathway leading up to the house be inviting. The pathway from the street to your front door provides plenty of real estate to get creative with. You don't have to settle for a boring concrete pathway. Consider something more eye catching, like a cobblestone path or intermittent brick patterns, as a way to better welcome potential buyers.

Usable Outdoor Furniture

Landscaping doesn't just involve the ground you walk on; also included are the items you use as extras to the overall look. Outdoor furniture is one such extra that you don't necessarily need but can look quite attractive if done correctly. Staging is important with outdoor furniture. Old, broken-down pieces will only look like more work to the potential buyer. A few comfortable chairs, a bench, or a table with an umbrella really go a long way to improving your outdoor aesthetics.

A good tip for deciding on curb appeal items is to decide what you personally would want to see as a part of a welcoming home's exterior. You don't need to go overboard, but a little bit of forethought could net you quite a lot of extra cash in the sale.

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Common Mistakes Made When Giving to Charity

Unfortunately, giving back can sometimes go haywire. If you're ready to make a donation, first consider common mistakes made when giving back.

Many people strive to support their community by donating their time or their money. When you find a meaningful cause, you might be quick to cut a donation check. Though it's admirable to be quick to act charitably, you should be wary of several common mistakes made when giving to charity. Being mindful of these mistakes and learning tips for making informed charitable choices can help you make the most out of your generous check.

Acting Quickly Out of Emotion

Mission statements are meant to be compelling. If you're an emotionally driven individual, it's natural to pull out your wallet at the sight of a sad puppy on TV or when informed about food insecurity over the phone. Unfortunately, not all charities are as effective or official as they may seem.

Take your passion for helping others one step further by making sure your chosen charity is legit. Speaking with a representative, reviewing their website and social media accounts, and looking at testaments online can give you a better idea of whether the organization is worth your donation.

Forgetting to Keep Record of the Donation

Don't forget that you can reap some financial perks from giving back! With the proper documentation of your donation, you can acquire a better tax deductible.

If you donate more than $12,400 as a single filer or $24,800 as one of two joint filers, you're eligible to deduct that amount from your taxes. So, when a charity asks if you'd like a receipt of donation, always answer yes.

Donating Unusable Materials

Most charities can utilize a monetary donation—it's the physical donations that usually cause some issues. Providing a local nonprofit with irrelevant materials or gifting them with unusable products are surprisingly common mistakes made when giving to charity.

Always check your intended charity's website for a list of things they do and do not accept. The majority of places will provide a guideline to donating or offer contact information to clarify any questions.

Strictly Giving at Year's End

As more and more people get into the holiday spirit at the end of the year, nonprofit organizations see an influx of donations. While it's great to spread holiday cheer via a monetary donation, it's important to keep that spirit going year-round.

With regular donations, charities can more effectively allocate their annual budget. Setting up an automatic monthly donation with the charity of your choosing can maximize your impact. You can account for a monthly donation by foregoing a costly coffee every once in a while.

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How Much You Should Spend on Home Maintenance

Knowing how much you should spend on home maintenance each year is hard to figure out and may be preventing you from buying your first home. The types of costs you'll incur depend on the house you buy and its location. The one certainty is that you should start saving now. Read on to figure out how much to start setting aside based on the home you own.

The Age of Your House

Consider several factors when budgeting for home repairs. If you've purchased a new home, your house likely won't require as much maintenance for a few years. Homes built 20 or more years ago are likely to require more maintenance, including replacing and keeping your windows clean. Further, depending on your home's location, weather can cause additional strain over time, so you may need to budget for more repairs.

The One-Percent Rule

An easy way to budget for home repairs is to follow the one-percent rule. Set aside one percent of your home's purchase price each year to cover maintenance costs. For instance, if you paid $200,000 for your home, you would set aside $2,000 each year. This plan is not foolproof. If you bought your home for a good deal during a buyer's market, your home could require more repairs than you've budgeted for.

The Square-Foot Rule

Easy to calculate, you can also budget for home maintenance by saving one dollar for every square foot of your home. This pricing method is more consistent than pricing it by how much you paid because the rate relies on the objective size of your home. Unfortunately, it does not consider inflation for the area where you live, so make sure you also budget for increased taxes and labor costs if you live in or near a city.

The Mix and Match Method

Since there is no infallible rule for how much you should spend on home maintenance, you can combine both methods to get an idea for a budget. Average your results from the square-foot rule and the one-percent rule to arrive at a budget that works for you. You should also increase your savings by 10 percent for each risk factor that affects your home, such as weather and age.

Holding on to savings is easier in theory than practice. Once you know how much you should spend on home maintenance, you'll know what to aim for and be more prepared for an emergency. If you are having trouble securing funds for home repairs, consider taking out a home equity loan, borrowing money from friends or family, or applying for funds through a home repair program through your local government for low-income individuals.

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