My Money, Covid & the Holidays

2020 has been an interesting one so far and a whole lot of people are looking forward to the new year with hopes that it will be better than this year has been. Typically, around Christmas and the new year people tend to spend more as a lot of stores go on sale, there are a ton of holiday festivities and giving going on. It really is the most beautiful time of the year.

Unfortunately, history has shown this is usually the time people tend to get into debt. So far, apart from the lack of holiday festivities (gosh, I miss the Christmas parties), this year may not be so different when it comes to consumer spending. If anything, some might feel the need to compensate for the lack of things to do and community and regular living by spending more on consumer goods. (Think of the first lockdown and the share price increase of companies such as amazon).

So, how to you overcome the financial pressures that come with the holidays in the middle of a global pandemic?

Set a budget.
Determine how much you want to spend on gifts, you can break it down per person too.
Remember that the fact that an item is on sale doesn’t make it cheap or affordable.
Unsubscribe from marketing emails.
Hide your credit card if you need to; don’t spend it if you don’t have it!
Get an accountability partner, someone who can hold you accountable to not spending more than you have already decided to spend this season.
Consider thoughtful gifts.
Think of low costly ways to celebrate the holidays this year: you could decide on movie nights, games nights or wine nights with your loved ones. (This could also be virtual.)
Get a seasonal job if you need to.
Stay at home.
Use cash back sites such as Rakuten if you are shopping online.

I asked ways people planned to be financially responsible this season on instagram last week and here are some of the responses.