As we are thrust into the midst of holiday season, we’re bombarded by an increase of marketing from retailers desperate to move their stock at the time of the year with the biggest spending.
November had the highest online spending spike of last year for New Zealand households (NZ Post eCommerce Insights) – largely driven by Singles Day, Black Friday and Cyber Monday deals – and was closely followed by December.
It’s difficult in a culture increasingly pushed towards consumerism to resist the shiny advertising.
40% off! Buy one, get one free! Only while stocks last!
It’s up to you to cut through the noise, stick to your plan, and stay on track with your goals.
Who’s Getting the Deal Here?
It’s important to remember that retailers aren’t putting their stock on sale as a public good – they want to make money.
They’re still looking to nab your dollar to make a dollar, and the item being on sale doesn’t get in the way of that. It’s just taking a bit of a skim off their margin to do so.
Often, stores will put their older (sometimes obsolete) stock on sale to get it out the door before it loses all sales value, or they may put the lower-end models from their main manufacturers on sale.
You might only be paying $70 for the keyboard from your favourite brand – the one on sale – but you actually needed the Bluetooth capability and the lighter-touch key feel that only the more expensive model features.
In the long term, you’re more likely to buy a new keyboard sooner if you’re not getting what you truly need or want.
Even if it feels like a deal in the moment, it may be costing ‘future you’ more in the end.
Having a Solid Plan is Key
Marketing is clever – it uses all the psychological tricks to try to unstick you from your hard-earned cash.
You can come out a winner – paying less than you would have in a non-sales period – but only if you can remain clear-headed and see through the shimmery marketing haze.
Were you planning on buying your niece the LEGO Disney Princess Advent Calendar that’s now $45.00 when it was $58.00 last week? That’s a true deal; you’re saving $13.00 on an expense you had already planned for.
But did you also need to add a $42.00 LEGO Botanicals: Plum Blossom for yourself? An expense you’d never intended, but it had the shiny 20% off label over the image so it wore you down.
We call this extra, unintentional spending your financial ‘fritter’ at enable.me.
It’s the spending that is somewhat mindless, that provides a hit of dopamine in the moment, but adds no true happiness to your life. That’s the spending we want to target when it comes to sticking to your plan and not getting sucked in by the sales.
Your strongest armour against the horde of discounts and sales strategies is a plan, one tailored to you with goals that are motivating, keeping you on the path you’ve set towards your own financial freedom.
The Psychology of the ‘Silly Season’
You’re being invited out for more restaurant catch-ups or clinking of champagne glasses at after-work drinks in the Friday sun.
You may have parents, children, uncles, aunts, friends, coworkers – people who may be expecting gifts this holiday season.
You might be hosting a party or celebration, or need to bring something along to thank a host.
All these yearly traditions can put the ‘silly’ in silly season – financially speaking.
But it rolls around every year. And can be budgeted for in your annual spending plan.
Our internal ‘money story’ monologue, often tuned by the way we grew up, can be a reason we reach for our wallet and swipe our card more.
If you didn’t have a lot of extras growing up, you may feel like you want to compensate for this now you’re making your own money – or maybe you want to provide your loved ones with a different experience.
If you’ve always associated money or spending with love, freedom or status, you may also be more likely to part with your cash.
It’s a challenge to stay mindful towards the end of the year and not let the holidays derail your financial progress.
But it’s vital to head into the crowded arena of sales season with a cool head and a plan – so you can remain intentional with your spending.
Gain Clarity from an Expert Financial Coach
Need support to nail down your plan and stick to your goals? Consider seeing a financial coach at enable.me – someone who can be in your corner and help you cut through the noise.
Book a consultation today with a qualified Financial Adviser and Coach at enable.me, and we’ll help you reach your goals.
Disclaimer: This blog post is for informational purposes only and does not constitute individual financial advice. If you’re interested in receiving financial advice, you can book a consultation with an enable.me coach. Costs apply.
