“Cash flow,” don’t “credit flow” your holiday shopping this year. But, as you walk into your favorite outlet mall, look out for the 7 Sales Pitches that are looking to take your money. The Wall Street Journal article examined the nature of these pitches and why they work on consumers.
“Shop today and save 50% next week.”
“Limit five per person.”
“Our Big Sale ends tomorrow/today/in a few hours.”
“Get 23% off.”
“We have a great deal on the accessories for that, too.”
“Save $250! (New price: $500.)”
“Get a free gift with your $50 purchase.”
So many bruise their cash flow this time of year because they lose track of their spending. It is so easy to buy something for someone and pick up something else for yourself because, well, because you deserve it , right? One good strategy is to leave the credit card home and use cash. Don’t credit flow, cash flow your holidy shopping. Start by making your list of gift recipients. Second, set a limit of what you want to spend on all gifts. For example, if you have 10 people to buy gifts for, but only $300 to spend, then you will have to limit yourself to an average of $30 a gift. Sure, you may spend $40 on one person, and $20 on another, but you get the idea. Cash flowing your holiday season will keep that unpleasant surprise appearing in your January credit card bill.
There is another danger. Using your checking account and running into your overdraft. That is just as bad as credit flowing your purchases, because you end up using a high rate credit card instead. To cash flow your holiday, go take cash (that you have in your account), out of the ATM. This is your buying fund. As you check off your gifts, you use this cash only. Don’t spend it on lunch, or gas.
Cash flowing your holidays will also help you buy smarter and not impulsively. You know that you have only so much money to spend, and you will be forced to move on to another gift selection. If you cannot buy all the gifts by this pay day because of a cash shortage, wait until the next pay day to draw out the needed cash. The item you want to buy may still be there.
Let’s say your cash flow will only allow $30 per gift, but there is a $60 item a family member really needs. Call another family member and split it. This way the gift recipient gets the gift they need, and you stay within your budget.
In these days of lay-offs, furloughs, reduced sales, we all need to shop smarter.
I love your style about Watch Out for These 7 Traps as You Cash Flow Your Holiday Shopping | Ricknorriscpa
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