Refinancing? Use This Insider Trick to Quickly Boost Your Credit Score
Over the past 20 years, I’ve bought three homes, but took out over a dozen...
We want to be transparent about how we are compensated. Some links in articles are from our sponsors. Learn more about how we make money.
You’re on a small boat in a wide river. The water moves calmly, almost majestically downstream. All around you are other people, each in his or her own little boat, and you’re all floating downstream. Some are caught in a little extra-fast eddy, moving downstream a bit faster. Others, in a calmer part of the river, float more slowly. But everyone is heading in the same direction.
But wait, what’s this?
Here and there you see a few people paddling upstream. One is a woman not far from your own boat.
“Why is she working so hard?” you wonder.
Then, as if crossing a threshold, you hear the roar of a waterfall downstream. Suddenly, paddling upstream seems like a pretty darned good idea (though a few people are actually paddling downstream, as if they’d welcome going over the fall).
You don’t really want to risk the fall, but you’ve spent so much time just going with the flow, that you don’t really know how to paddle effectively. Your muscles aren’t used to the effort, so making headway against the inexorable flow of the water seems overwhelming.
Welcome to the Holiday Shopping season.
That waterfall you’re hearing? That’s where you spend way more than you should, more than you can afford. The rocks at the bottom of the waterfall? Those are January’s credit card bills.
As I see it, there are just two reasons, each with several aspects.
We live in a consumerist society. Consumer purchasing drives over 2/3 of our economy. To keep things pumping, you’re exposed to thousands of marketing messages per day, and anecdotal experience shows that this deluge goes into crazy overdrive during the holiday season.
According to the National Retail Federation, Americans are expected to spend about $730 billion this holiday season, and that’s without counting car sales, gas, and restaurants. This activity comprises 20% of the annual total, and as much as 30% for some industries. This means that on a per-day basis, sales are between 20% and 80% higher during the holidays than the annual average. When you consider that fixed expenses are, well, fixed, having much higher sales in the same period of time translates to much, much, much higher profits.
Knowing this, merchants and their marketers exert as much pressure, not to say outright manipulation on us, taking advantage of everything they know about consumer psychology to increase sales even more.
They make shopping as convenient as single-click purchasing with free delivery; they separate the dopamine hit of purchasing a shiny new widget from the financial pain of having to pay for it weeks later; they entice people to spend more time in brightly lit malls, knowing that the longer we’re there, the more we’ll spend; they send you coupon-and-deal-laden emails based on what you posted on Facebook, what you searched for on Google, etc.; and they create fake urgency and scarcity triggers such as “door-buster deals” and “as-long-as-supplies-last” sales.
In our river metaphor, they’re the ones pushing your boat downstream with their paddles, to give their own boat a boost upstream.
First and foremost, we humans are social animals who want to feel like we belong. When everybody is shopping until they drop, it can be really hard to not participate in the mass insanity without feeling like a Grinch.
When everybody is shopping until they drop, it can be really hard to not participate in the mass insanity without feeling like a Grinch.
You may feel guilty for how you’ve treated your kids, spouse, other relatives, friends, etc. Maybe you don’t think you spent enough quality time with them, or you failed to invite them over for a party or family event. But hey, the holidays are your opportunity to assuage your guilt by buying extravagant gifts, right?
Finally, you’re so busy, that you’ve put off gift shopping until the very last minute. Then, you rush like a dervish from store to store, from e-commerce website to e-commerce website, buying anything and everything that catches your eye, without checking if there’s someone on your list for whom this particular purchase would be a thoughtful and appropriate gift, and for whom you don’t already have more gifts than you need.
In the river metaphor, this is your feeling like you can’t paddle effectively against the flow that threatens to throw you over the fall.
A quote attributed to The Reverend H. K. Williams says, “If you fail to prepare you are preparing to fail.” I prefer a variant, “Failing to plan is like planning to fail.”
Spending a bit of time to plan your holiday shopping ahead can save you a lot of time, stress, and money.
In all cases, don’t stick around in stores and on e-commerce sites longer than you need to. That will just subject you to more temptation. If you do happen to come across a perfect gift that you didn’t think of before, buy it only if you haven’t yet purchased a gift for the recipient in question, and assuming the new idea doesn’t bust your budget.
The best way to ace your holiday shopping is to be strategic about it. Follow the above 10-step process to create your plan and execute it like a champ.
How do you avoid succumbing to the holiday season gift shopping insanity?
Disclaimer: The information in this article is not intended to encourage any lifestyle changes without careful consideration and consultation with a qualified professional. This article is for reference purposes only, is generic in nature, is not intended as individual advice and is not financial or legal advice.