Brace for the Holidays! Have a plan

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.

Avoid scams

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

As for tipping, see our post Guidelines for Holiday Tips and Gift.

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.

Scam update for more on Cyber-Attackers, Cloud Computing – be Vigilant!

We wrote before about the need for vigilance to protect you from cybercriminals. We drew on input from Norton Antivirus about social media scams. In this post, we draw upon the Kiplinger’s Tax Letter and SingleHop.com site.

IRS e-mails – You might not think that tax preparers would fall for e-mail scams, but some do. The 2-27-15 Kiplinger’s Tax Letter describes use of bogus e-mails asking professionals to “update their IRS e-services accounts and their electronic filing ID numbers plus provide personal data.” As we have said in prior posts, the IRS categorically states that they do not send out e-mails.

Cloud Computing – SingleHop is a company endeavoring to be private cloud experts. They champion users holding cloud servers accountable for maintaining high level, monitored and updated security for all client files. Their recent newsletter notes that over 250,000 complaints were filed with the FBI’s Internet Crime Complaint Center (ic3.gov) in 2013 alone, of which over 20% were under age 30. (For more on how “private cloud” computing fits in the internet infrastructure, here is a helpful SingleHop page: [[https://www.singlehop.com/private-cloud-hosting/|SingleHop site]])

They caution you not to rely on links from e-mails to the websites you frequent. Instead, they encourage you to create bookmarks for these websites to ensure that you are logging onto the site you intend. They also favor sites that use two levels to authenticate you before granting access to personal information. “With such methods, after logging in with your password, the site will text or email you a single-use code that must be entered. Only the registered phone number or email address will receive the code, making it that much harder for hackers to gain unauthorized access to your accounts.”

Scam Update – With the cautions from both sources in mind, we updated our post, to help you remain vigilant:

//Hidden URLs// – Those shortened URLs are convenient, but they may be links to websites you don’t want to visit, or worse, they could install malware on your computer. SingleHop admonishes, “Especially look out for slightly misspelled words or words that use unexpected characters, such as substituting a “0” (number) for a “0” (letter) — for example, HOME DEPOT. If something looks even a little bit fishy, delete the email or close the site immediately.”

//Phishing Requests// – When you get an invitation to click on any link, think twice. When you click, you may be taken to a fake Twitter or Facebook or to a bank, credit card issuer, or another financial institution login page. SingleHop says “Phishers will design their sites to look exactly like the website of your” institutions. If you fall for the fake website, and enter you username and password, the cybercriminals can use your information on the real website to gain complete control of your account.

//Hidden Charges// – Be wary of those online quizzes that offer to tell you interesting information about yourself like which 1960s sitcom star you resemble. If the quiz asks you for personal information, such as your phone number, stop. If you continue, you many end up subscribing to some service that charges a recurring monthly fee.

//Cash Grabs// – It’s great to make new friends, but maybe not by “friending” strangers on Facebook. That person you just friended on Facebook may soon be asking you for money. You can avoid this situation by limiting your social media connections to people you know personally. Ignore friend requests when you do not know the person and have no friends in common.

//Chain Letters// – Sure, you want to be sure that Microsoft will donate the millions it promised to some worthy charity if you keep the online chain letter going. However, such “chain letter” e-mails are a way for spammers to access your friends to connect with them later. Also, you never know to whom your friends will forward the letter.

Sites that are popular with users are popular with criminals, so remain vigilant when you are on line, and, of course, keep your antivirus and anti-malware software up to date. Be wary and think twice before clicking on a suspicious link!

On-line Scams – some to look out for to protect your finances

Our society today has growing appetite for social media and most of us use it for legitimate purposes: connecting with our friends, pursuing our hobbies or building our businesses. Unfortunately, part of the population has a more insidious use for social media: they want to scam you. Thankfully, a little vigilance can go a long way in protecting you from these cyber criminals. Here is one list you can use, from Norton Antivirus, showing the top five social media scams:
1. **Hidden URLs** – Those shortened URLs are convenient, but they may be links to websites you don’t want to visit, or worse, they could install malware on your computer.
2. **Phishing Requests** – When you get an invitation to click on a link to see a picture of yourself at some wild party, think twice. Once you click, you’re taken to a fake Twitter or Facebook login page where you enter you user name and password. Doing this gives the cyber-criminals complete control of your account.
3. **Hidden Charges** – Be wary of those on-line quizzes that offer to tell you interesting information about yourself like which 1960s sitcom star you resemble. If the quiz asks you for personal information, such as your phone number, stop. If you continue, you many end up subscribing to some service that charges a recurring monthly fee.
4. **Cash Grabs** – It’s great to make new friends, but maybe not by “friending” strangers on Facebook. That person you just friended on Facebook may soon be asking you for money. You can avoid this situation by limiting your social media connections to people you know personally.
5. **Chain Letters** – Sure, you want to be sure that Microsoft will donate the millions it promised to some worthy charity if you keep the on-line chain letter going. However, such “chain letter” e-mails are a way for scammers to access your friends to connect with them later.
Sites that are popular with users are popular with criminals, too. Be vigilant, keep your anti-virus and anti-malware software up to date and think twice before clicking on a suspicious link!