It seems as if retailers start the so-called “traditional buying season” earlier and earlier every year. There’s a lot of pressure to spend money on holiday décor, gifts, and experiences.
Well, if they can start early, so can we. We’re going to help you prepare … by resisting the temptations of emotional buying and impulse spending. It's crucial to prepare in advance to avoid succumbing to emotional buying and impulse spending.
EMOTIONAL BUYING:
- It's crucial to prepare in advance to avoid succumbing to emotional buying and impulse spending.
- Most buying decisions, especially during holidays, are influenced by emotions.
Factors that influence emotional buying:
- Affection: Wanting the best for loved ones can lead to overspending.
- Guilt: Spending to compensate for the lack of time spent with someone or to ensure a "good Christmas".
- Pride: Purchasing to match up with celebrities or neighbors.
- Desire: Believing material things can fulfill our innate desires for comfort, love, and appreciation.
- Fear (FOMO): Fear of not having, giving, or doing enough can prompt unnecessary purchases.
- Succumbing to these emotions can lead to financial regret, as warned in Proverbs 25:28: “Like a city whose walls are broken through is a person who lacks self-control.”
IMPULSE BUYING: It's closely related to emotional buying.
Impulse purchases:
- Are hasty decisions: Proverbs 21:5 warns, “The plans of the diligent lead surely to advantage, but everyone who is hasty comes surely to poverty.”
- Often leads to buyer's remorse.
- Divert funds from more worthy causes.
WAYS TO MAINTAIN FINANCIAL INTEGRITY DURING HOLIDAYS:
- Recognize the dangers of overspending: Proverbs 22:3 notes, “The prudent man sees danger and hides himself, but the simple go on and suffer for it.”
- Create a spending plan: Save monthly for out-of-budget expenses and avoid repeating past mistakes.
- Communicate the plan: Ensure everyone is aligned with the holiday budget.
- Focus on giving: Prioritize sharing and giving over receiving, thereby addressing emotional and impulse buying tendencies.
CONCLUSION:
Prepare financially for the holiday season to control emotional and impulse spending. Utilize resources such as the faithfi website or app to help manage your budget.
On today’s program, Rob also answers listener questions:
- How much can my husband earn after he turns 70 without impacting his social security benefit?
- Considering our financial situation, is it better for me to collect social security now or wait?
- Should we invest $15,000 in our Roth IRA or place it in a 12-month CD?
- Is it wise to hold onto my ATM stock after a 50% loss?
- Would it benefit me to transfer my underperforming separate fund to my main portfolio?
- If the retirement age changes, will my disability benefits extend to the new age?
- What's the best way for our church to manage or invest its $100,000 emergency fund?
RESOURCES MENTIONED:
Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network as well as American Family Radio. Visit our website at FaithFi.comwhere you can join the FaithFi Community, and give as we expand our outreach.
Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network and American Family Radio. Visit our website at FaithFi.com where you can join the FaithFi Community and give as we expand our outreach.
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