How to Give Richly and Keep Your Budget In Track

At the end of the year we have the traditions of giving gift. Here are 3 ways to smart gifting that give back from Personal Money #76.

1) Plan wisely

Make a list of your gift's recipients. You might want to consider giving to people who provided good service to you the entire year. Make a rough estimate of the total spent each year and decide if you want to spend less, the same or more. Second, set a ceiling budget for each person, including gift-wrapping or postal charges. For more saving, look out for periodical sales.

2) Keep to your budget

What do you do when you are given gift, but have nothing to give in return? Never rush to buy someone a gift in return, as the giver will know you never meant to give it in the first place. Instead, write a thank you note a day after. This will be more sincere. If your recipient gives you an expensive gift? Stick to what you can afford.

3) Keep credit in check

Avoid using your credit card unless you know you will be able to pay the bill in full. Credit cards are convenience tools only and cannot be treated as cash in hand.