As Halloween passes, we know that the season of over-buying and over-eating is approaching, so it’s time to prepare. You want to enjoy being with friends and family without having the hangover of overspending, or worse, going into debt to finance all the fun.
Make the gift giving fit with your cash management
Over-buying does not make you happier and usually makes the recipient uncomfortable. Also, over-spending is likely to make achieving your long-term goals more difficult, which can add to the depression some feel at this time of year.
For gifts, “it’s the thought that counts” rings true. Most recipients appreciate being remembered for who they are and what they do. Think back to what you enjoyed most in past holidays and let that guide you. This can help you stick to your values as you think through the entire process and devise your holiday shopping plan. The time spent together may be far more important and rewarding than unnecessary giving.
Have a plan
Technology and social media can make shopping easier, but they also make it easier to overspend and end up with credit card debt from funding your gift giving.
Part of the reason is that many such purchases are spontaneous. People often regret these unplanned purchases. Over 70% of people in one survey exceeded their budget and over half bought items not on their list. This can make the new year bleak (More than 3 in 4 Americans are stressed about going into debt over the holidays — and technology’s not helping ) Counter this by creating a realistic budget, lookout for sales, review your budget to make sure you are on track.
Budget – If you determine what you can reasonably spend and allocate that to people for whom you want to buy gifts, or give holiday tips, then you have a spending plan that should get you through. When devising your plan, go back to your financial goals to remind yourself why staying on track is so important. Include time for present wrapping to avoid time pressure that encourages splurge buying. Also, you may want to have small gifts on hand for unexpected guests. You can use budget apps, such as NerdWallet, to create a budget. When you do, stick to it!
If the people for whom you are shopping have wish lists, follow them for ideas. And leave items in your shopping cart overnight to take a second look and avoid regretting a splurge purchase. Ask “does the person really want or need this?,” especially if you are shopping for yourself! (It may be wise to avoid, or at least substantially limit, any buying for yourself.)
Be Wary of Black Friday, Cyber Monday and other retailer tricks
If you do your homework, you can determine if waiting in line or buying on line will be best. As stated above, create a budget and stick to it.
Be on the lookout for retailer other tricks like flash sales, loyalty cards, incentives to return for more purchases, misleading refund policies. Similarly, procrastinating can lead to splurge buying ruled by emotions such as the need to please everyone and get the shopping done.
With the pressure of the holidays to address all the gift giving, parties and thank yous, stay vigilant for scams. These can come in the form of bogus IRS and social security calls, credit card offers, computer software deals and fake invoices. There are many phishing sites you can use to check out whether the offers are legit.
Review our Holiday Tipping Guide
Remember, if you’re unable to tip or give a gift, a thoughtful thank you note will acknowledge those people who are important to you. You can even make a donation in their name.
Brace for over-eating and possibly even depression
This blog is does not profess to have any expertise in psychology. Nonetheless, we have all heard how holidays can be disappointing if not depressing from some. The Hallmark gatherings promised on TV or social media rarely happen in real life.
If the holidays are depressing, consider volunteering somewhere, such as a soup kitchen, or getting out for some serious exercise. Both can lift your mood as well as either help others or improve your health. Allow time to rest and recover! And try a warm drink, tea not bourbon, or a warm bath.
Take care of yourself – it’s hard to help anyone else if you are not in good shape yourself. But if you are really experiencing holiday depression, speaking to people can help, be that family, friends or professionals.
We wish you all the best for financially sound, and fun, holidays! And let us know if we can help you plan.