Welcome to the ABCs of Savings! Each day we’ll be discussing another money saving topic, each beginning with a different letter of the alphabet. Be sure to subscribe via RSS or email so you don’t miss any steps along the way. You can read the full alphabet of posts here (updated as they are posted).

G: Gifts

Gifts can be a budget breaker if you’re not planning ahead. Who wants to pay retail or scramble around at the last minute for the perfect gift (which ends up being a not-so-perfect-gift!). With a bit of planning and a watchful eye, you can definitely save on gifts just like you save on groceries. Here’s how.

Stockpile Gifts

You read that right. Why not start a little gift stockpile like your food stockpile? I keep a Rubbermaid tub in a closet all year. Each time I find a killer deal on something that would make a great gift, I buy it (if there’s money in the budget for it) and stash it in my Rubbermaid tub.

If you decide to start stockpiling gifts, be sure to keep an inventory.  I’m saying that more for my own benefit. I’m horrible about knowing what’s in my gifts stockpile. Let’s just say that I’ve been known to accidentally end up with two Christmas gifts for someone because I wasn’t paying attention! A simple sheet of paper inside the tub or a file on your computer should do the trick for keeping an inventory of gifts.

Shop All Year

This kind of goes along with stockpiling gifts, but it’s worth mentioning. If you see a great $5 deal on a photo flip book, you could always make it for Mother’s Day (even if it’s January!) or Christmas (even if it’s July!). Grabbing gifts when they’re at rock bottom prices means you can stretch your gift budget even further.

Personalize a Stockpile Gift

Maybe you’ve been stockpiling freebies to use as gifts. Putting together a little coffee-lovers gift basket would be easy if you have a bunch of coffee samples you’ve requested. Add the recipient’s favorite creamer or a book they might love, and you have an instant (and very inexpensive) gift that’s personalized. Sometimes adding just one little item that’s chosen just for the recipient is all it takes to personalize what you have on hand.

We did this one year for my husband’s step-mom. When I asked her what she’d like to have for Christmas, she said, “I want some of that good free stuff you find!” Well then! That was easy! I put together a basket full of personal care items, candy, candles, and other things I knew she would love. It was fun to coupon with her in mind, and she loved the results.

Knowing When It’s Not a Deal

It’s easy to get carried away when the deals are hot! I’ve been tempted more than once to buy something just because it’s an amazing deal. But if I stop and ask myself if there’s someone I usually buy for who would be a perfect match for the gift, I often find myself realizing that there’s no one for me to give the item to. That’s not a good use of our gift funds.

You can also spend too much even when you’re saving a ton. If you have a monthly gift budget of $50 but end up buying $200 worth of merchandise for $75, that’s not a deal. You’ve gone over the budget by $25. So keeping track of what you have to spend will help you decide what’s a good deal for your family.