It's tough to pick out the right gift, even if you know the recipient well. It gets even tougher when you're not sure how much to spend on it. What's the appropriate cost for a housewarming gift when they live on a farm? Should you buy a wall clock or some livestock waterers? How much should you spend if you get invited to the birthday party of a friend of a friend, whom you barely know? These questions often plague gift givers, causing them a lot of anxiety. Hopefully this article with help.

The first and most important thing to remember when you're buying a gift is that there are no hard and fast rules when it comes to cost. People will tell you that it's the thought that counts, and that's true, but that doesn't mean you should buy cheap dollar store trinkets to decorate people's new decks in Vancouver. It means you have to be smart and figure out what the recipient needs and wants so you can choose a gift that will be meaningful to them without setting back your retirement savings.

The budget for your gift should be something that you and you alone decide based on what you can afford and how much you're willing to part with to help a friend decorate her new Mississauga condominiums. It is inappropriate and extremely tacky for the recipient to ask for or demand that gift givers spend a certain amount of money, and each person's finances are different, so you shouldn't allow your friends and relatives to influence you when you find out how much they're spending. If you're exchanging gifts for an occasion like Christmas, save everyone the headache and agree to all spend the same amount.

The only time this rule really gets bent is for large parties like weddings where the recipient actually registers for gifts at the store. Although this was designed to help guests keep from giving the same gift, it can also lead you to believe that you should spend more than the operating budget on your graphic design firm in Toronto in the gift. Remember: you are under no obligation to buy a gift from the registry. If they're all too steep for you, feel free to choose something else you think they would like.

Since the important aspect of the gift is its appropriateness for the recipient, you can actually save quite a lot of money on gifts - without anyone even knowing, a lot of the time - if you're a savvy shopper. If you win a pass to a Toronto gym and you always work out at home, why not give the pass to a friend who wants a gym pass as a gift? If you know your friend likes a certain pattern, who will know if you buy her something from the outlet mall instead of from the upscale mall? No one.