Don’t take the plunge! Don’t dive into debt! The holiday spending season is here starting with the famed Black Friday!! This is the time of the year where many people get themselves into debt. Whether you’re planning on buying things for yourself or others don’t get sucked into debt through consumerism this year.
I know it’s tough to resist. We see all sorts of ads for things that look great. We want them all! But how many things do we need?!?
And what does everyone else really need? Does your nephew really need that expensive toy? Does Aunt Gertrude need that extra gadget? Why are we really buying this stuff? Is it because someone will really appreciate it or because someone expects something from you?
It’s ok to give gifts this time of the year, I’m not saying do away with that. Just look at what you intend to buy and try to foresee it’s usefulness. Look at why you want to buy something.
It’s the job of ad agencies and stores to make you want what they offer. They’ll bombard you in all sorts of ways to make you want their products. Stay focused. Resist!
Here’s some things we can do this year to make the holidays easier on our wallets:
- Explain to family and friends that you are not going to go crazy buying gifts this year. Ask that they do the same for you and your family. You may find some people relieved that they don’t have to figure out what kind of scarf to get you this year.
- Look at your savings and figure out what you can really afford. Don’t wait until you have gotten to the mall to figure out who is getting what. By then it’s too late. Notice I said savings. Don’t let yourself get into credit card debt buying gifts!
- If you have to give a gift and aren’t sure what to give make a donation in the person’s name to a charity they would be interested in. You may not have to disclose the amount (spend what you can afford) and now you really are giving a gift that will help others!
- For kids: Instead of that toy they’ll play with for a day then forget, consider getting them a savings bond. Standard U.S bonds are bought at half of face value so a $50 bond will only cost you $25. Sure a child may not appreciate this now but by the time the bond matures they’ll see the wisdom of the gift. You could also, instead, put money into a 529 account in the child’s name (you get the tax deduction) or maybe buying a share of stock in the child’s name (what kid doesn’t want to own a piece of Disney!).
- If there’s something you really want and you’re gonna buy it no matter what then do some research on it. Check the prices online to see who really has the best deal. Maybe one store has a better service plan or return plan? Maybe one retailer will throw in some extras? Hey, sometimes when you do the research you find out that the product really isn’t that great anyway.
- If you can, wait until after Christmas. This one’s tricky, I know, but stores offer great savings right after the holidays!
- You know those retail credits cards that say no payments until… whenever? Don’t sign up for them! Retail credit cards have ridiculously high interest rates. There are cases where these can be useful but for most people retail credit cards are a very bad source of debt. Would you buy something if there was a sign that said the item was really 20% MORE than what it is?
Most of all, spend quality time with the people around you. This is really the greatest gift you can give.
Check this post from SavingAdvice for more thoughts on the subject.
Let me know what you will be doing this holiday season to stay out of debt.
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{ 3 comments… read them below or add one }
That sounds like some rant there. I understand though, the holidays can be killer!
I think the best way to avoid feeling guilty about not buying high-priced gadgets for kids is to remember that most of the time these gadgets are only used for a few weeks at most. Something that lets them create, or a simple stuffed animal for littler ones, goes a lot farther. And it doesn’t have to be expensive.
So true Mrs Micah. A great toy may only be played with until the next one comes along. You have to watch out with the stuffed animals though, they pile up very quickly and just become a blur in the corner of the room!