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December 2008 |
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Ah, the
sweet refrains of music fill the air at this special time of year. This year,
however, one other sound might be eerily absent…the sound of loose change
hitting in the Salvation Army buckets, or the swishing of dollar bills being
exchanged at the merchant counters or even the swiping noise as the debit
card slides through the reader. Without a doubt local retailers are preparing
for record low sales as consumers hunker down for a long winter’s spending
hiatus. It isn’t all doom and gloom, however. There are plenty of
ideas for making the holidays merry without breaking the bank. In fact, our
society can go for a little less over-spending right about now. This is a
season about giving, but giving and receiving comes in many forms—not all of
them causing immediate and irrevocable sticker shock. A little conscious
spending could go a long way in this environment. So what exactly is conscious spending? How can you ensure
you are being fully conscious in what you are spending your money on and how
much money you are spending? It starts with being fully present and aware. You may
want to consider having a holiday spending budget and then being disciplined
in sticking to it. Some forethought about the gifts you want to buy and some
comparison shopping might help ensure that you’re getting the best deal on
the item. On-line shopping makes comparing prices easier to do and it also
saves you a lot in terms of time, frustration and gasoline. Consider creating
a gift chart that includes columns for the name of the recipient, the
intended gift, the budget, the actual gift cost and
a running tabulation of your total spend. This not only increases your
self-awareness about your spending habits, it helps you be completely present
in what you’re selecting for whom, virtually eliminating the often more
costly spontaneous buy. Conscious spending is like taking time to look at your
food before you eat it. It’s like smelling a flower before picking it so you
can appreciate its natural beauty before you remove it from its element.
Applying this analogy to holiday spending, you may see something that is
indeed a lovely gift for someone but it exceeds your intended budget. You can
appreciate the beauty of that item without putting it in your cart, deferring
rather to the gift that falls within the budget of your original intent. Buying your gifts with cash rather than using a credit
card is another well tested strategy to reduce your costs. It’s estimated
that people spend 15 to 20 percent more when using credit cards. In today’s
economic climate, that over-consumption can add up quickly and compound your
post-holiday debt and corresponding financial stress. Be safe with your cash,
as sadly there is an increased incidence in thefts and purse snatching around
the holidays and even higher during economic declines. There seems to be an awful lot of guilt that accompanies
the holidays as well. People feel guilty if they don’t or can’t buy gifts for
everyone on their list or if they have to spend less than they have
previously. To you I say release your guilt. You will feel a lot worse later
when the deferred bills start arriving. Also, be careful buying gift cards this year. Retailers
are not obligated to honor gift cards if they subsequently close. You and the
recipient of your gift cards could be out the whole amount if a store goes
under and we’re seeing more and more of that every day. Right now, two helpful and low cost gifts I would
strongly recommend include The Financial
Wisdom of Ebenezer Scrooge by Ted Klontz, Rick Kahler and Brad Klontz and the Ultimate Gift by James Stovell. For less than $20, these books help us recall
important lessons about financial sustainability without being preachy or
shameful. They make wonderful gifts with true staying power. Being more conscious of your holiday spending will help
keep you in the holiday spirit long after the days of celebration are over. Appreciatively, |