How To Budget Using Gift Cards

Yes, gift cards are amazing because they are great gifts and make payments convenient. But did you know that you can also budget using gift cards? That’s another advantage gift cards have to offer their users. 

Gift cards come in both physical and digital formats and any of them can be used to avoid overspending. Since gift vouchers come in different amounts, you can buy one that matches your budget or is closest to your budget amount. It’s like using cash envelopes but in an upgraded way. 

If you would like to know more about how to budget with gift cards, keep reading. In this article, I’ll walk you through the steps involved in budgeting with gift vouchers and why it is a good idea. Without further ado, let’s get started.  

How To Budget With Gift Cards

Now that you know that you can use gift cards as a budgeting tool, how do you go about it? It’s simple. Budgeting with cards basically involves designating the funds of a particular gift card to a particular expense. That way when the funds are exhausted, you won’t be tempted to overspend. 

Here’s how you can go about using gift cards to budget step by step:

1. Draw up your budget. 
2. Decide on expenses to use gift cards for. 
3. Buy the gift cards you need. 
4. Keep track of your gift card balances. 
5. Make necessary adjustments over time. 

Still a little confused? Let me explain each point one after the other. 

1. Draw Up Your Budget

First, you need to create a budget. List all your income sources and expenses. Include everything from rent and groceries to entertainment and savings. This will give you a clear picture of where your money is going. Use simple tools like a notebook or a budget app to keep track. 

Also, think about your goals. Do you want to save more or spend less? This will help you allocate your resources wisely. A budget is not just about cutting costs; it’s about making your money work for you. When you see where your money goes, you can make better decisions. 

2. Decide on Expenses to Use Gift Cards for

Next, decide which expenses you want to use gift cards for. Common choices include groceries, entertainment, and dining out. Gift cards can help you control spending in these areas. Choose expenses that you regularly have and are easy to predict.

For example, if you spend $200 a month on groceries, buy a $200 grocery gift card. It could be from Target, Walmart or any supermarket you usually shop at. This way, you can’t overspend. Using gift cards for specific expenses makes sticking to your budget easier. 

3. Buy the Gift Cards You Need

Once you’ve figured out what expenses you want to use gift cards for, buy the gift cards you need. Nosh offers a wide range of gift cards for many brands. You can buy gift cards for grocery stores, restaurants, and even clothing stores. Buying gift cards from Nosh is fast, convenient, and cheap.

Try to buy gift cards only for places you shop at regularly. This way, you know the card will be used and your funds won’t go to waste. Additionally, get the gift cards in denominations exactly or close to your budget. 

4. Keep Track of Your Gift Card Balances

After buying your gift cards, keep track of the balances. You don’t want to run out of money unexpectedly. Use a notebook, an app, or even a simple spreadsheet. Write down the starting balance and subtract each purchase.

For example, if you have a $100 Target gift card and spend $30, write down that you have $70 left. Also, check your gift card balance to confirm it. Regularly checking your balances helps you stay on top of your spending. It also prevents you from accidentally overspending. 

5. Make Necessary Adjustments Over Time

Lastly, make adjustments as needed. Your budget is not set in stone. If you find that $200 for groceries is not enough, you might need to buy a gift card with more funds next month. Or, if you’re not using your dining-out gift card as much, you can adjust that too.

Life changes, and so should your budget. You could get a raise or your expenses could change. Keep an eye on your spending and make tweaks to your budget and gift card purchases. Adjusting helps you stay flexible and ensures your budget works for you, not the other way around.

Why Use Gift Cards to Budget?

Using gift cards to budget is a smart and easy way to control your spending. It turns your budget into something tangible and helps you stick to it. Here are some reasons why using gift cards can be helpful for managing your money.

1. Helps you avoid overspending: Gift cards set a limit on how much you can spend. For example, if you have a $50 restaurant gift card, you can’t spend more than $50 on dining out. This keeps you from overspending. 
2. Makes budgeting fun and simple: Using gift cards can make budgeting more fun and less of a chore. This can be especially helpful if you find traditional budgeting boring. When you buy a gift card, it’s like setting a challenge for yourself to stick to that amount.
3. Easy to track spending: Tracking your spending is easier with gift cards. You can quickly check the balance to see how much you have left. This helps you stay on top of your budget without needing to write down every expense. 
4. Great for specific categories: Gift cards work well for specific spending categories like groceries, dining out, or entertainment. You can decide ahead of time how much you want to spend in each category and buy a gift card for that amount. This helps you allocate your money more effectively. 
5. Discounts and deals: Sometimes, you can buy gift cards at a discount. For instance, there are deals at Costco that allow you to buy two $50 gift cards at $79.99. This means you get more value for your money and can save more. 

Frequently Asked Questions About Budgeting with Gift Cards

1. What is a budget?

A budget is a spending plan that shows the estimate of the money you make and the expenses you plan to spend it on. It helps you have an overview of your income and expenses as well as determine how you allocate your resources.

2. How do I budget using a gift card?

To budget with a gift card, choose expenses you want to use the gift card for like groceries or dining out. Buy gift cards for those amounts and use them instead of cash or a credit card. Also, track the balance to ensure you stay within your budget.

2. What are the pros of using gift cards to budget?

Gift cards help you control spending, simplify tracking, allocate funds to specific categories, and can help you enjoy discounts or promotions.

3. What are the cons of budgeting with gift cards?

Gift cards can be restrictive, limiting where and how you spend. If you lose the card, you lose the money. Also, they may have expiration dates or fees.

Conclusion 

Using gift cards to budget is a practical and effective way to manage your money. Follow the steps in this article and let that guide you through budgeting. 

Gift cards can help you stay on top of your finances by setting clear spending limits, making budgeting more enjoyable, and simplifying expense tracking. Plus, they offer great benefits like discounts and deals, making them even more valuable. 

Do you want to buy gift cards to budget with or sell unused ones? Download the Nosh app now for fast transactions and instant payouts.