Christmas is approaching and the pressure to spend is mounting. In the 6 money saving tips for holidays post, I am going to show you how you can spend money without hurting your finances.
1. Understand the psychology of Christmas shopping:
Christmas is the perfect time for Retailers to make tons of profits. Retailers are spending hundreds of thousands on advertisement to influence you and I to buy. Marketers will do anything to manipulate or nudge you to consume. An example of this is the Christmas adverts that spring into our tv screens just after Halloween.
Most Christmas adverts usually involve an excited child receiving presents from their parents. These types of adverts are made specifically to remind us that our loved ones appreciate presents and therefore that we should spend our hard-earned money to buy them present.
“6 Money saving tips for holidays”
Another psychological explanation for this is because people are altruistic by nature, we love helping others and making others feel good because that, in turn, makes us feel good about ourselves. So, Christmas adverts are literally designed to target how our brain works and nudge us into spending more than we would at any other time.
Here’s a diagram summarizing the forecasted total Christmas spending in 7 European countries in 2016:
Based on projected retail turnover in the six weeks before Christmas 2016, the UK topped the bill with the equivalent of $94 billion (£75 billion) to be spent in that period. With giving often extending beyond just immediate family and friends.
2. Make a budget and do the best to stick on it
Why you might wonder?
Making a budget gives you a clear view of your finances. It shows you your total income and details exactly where and how you spend it. It helps you manage your finances effectively and as result, to reach your financial goals.
Planning head before receiving your paycheck will prevent you from wasting your money on unnecessary things.
3. Set a limit
We are encouraging you to make a budget, but I know how difficult it can be to stick to it during the Christmas season. The chances to spend more than planned is high but you should keep it under control.
For example, if you have a budget of 150 Euro for presents, you can put another 50 euro on the side. By doing so, 200 euro will be your spending limit.
During the Christmas season you will find many opportunities to buy items on discount, which is quite tempting, but remember to buy only items you need.
4. Sell things you don’t need
You are going to spend money during this Christmas holiday, why not to make deals and earn some money? Start by selling items you don’t need. It can be your clothes, shoes, bags etc.
Remember, items that are useless for you can be useful to another person. Maybe, you’ll sell your items for less than you spent on it initially, but you will earn some cash, space in your wardrobe and will give joy to the person who buys it.
Last summer, I went to a thrift shop and I bought a second hand pair of boots at only 3 euro. For the sellers, it was only a pair of shoes, but for me it was a big thing.
5. Don’t take out a loan for Christmas
Before digging on credit cards, you should ask yourself if it’s worthy. Christmas season is not the only time you can spend on presents. Resist to the pressure to spend more.
In America for example many people use their credit cards to fund their Christmas spending
Millennials are the worst here: 24 percent still haven’t paid off credit card debt incurred during the 2016 shopping season according data from NerdWallet’s 2017 Consumer Holiday Shopping Report, which analyzed spending behavior trends of more than 2,000 Americans aged 18 and over.
Don’t take out a loan for the sake of Christmas holiday.
6. Give gifts to the people who need it the most
It’s Christmas which is the opportunity for you and I to share happiness with those less fortunate than us. Why not to donate few bucks to a charity that supports a cause that matter to you? This is the type of thing that will bring happiness in your life because you are giving without expecting something in return.
takeaways from 6 Money saving tips for holidays post:
1. Understand the psychology of Christmas: marketers will do whatever it takes to influence you to buy more during Christmas season.
2. Make a budget and do the best to stick on it: planning ahead before receiving your paycheck will prevent you from wasting your money on unnecessary things.
3. Set a limit: have a clear amount of money you can afford spending for the Christmas holiday. Everything extra is not worth it.
4. Sell things you don’t need: Start by selling items you don’t need. Make some bucks, space in your wardrobe and give joy to the person who will buy it.
5. Don’t take out a loan for Christmas: Avoid this trap, resist the pressure to spend more and more.
6. Give presents to people who need it the most: share with people who are less fortunate than you.
I hope you have enjoyed reading this post. Until then, keep getting better and grow wealthy.
You might also like this articles :