Money Musings đź’ How to USE or LOSE the holiday sales
As we approach the biggest shopping weekend of the year, I want to share some of the strategies I’ve developed for not overspending (too much).
For years, I matter-of-factly decided I wouldn’t buy anything on Black Friday or Cyber Monday - and I consistently failed. 🤦‍♀️ Sometimes bigger than others.
These are the five things that have changed the holiday sale game for me:
I make a list of what I want to buy BEFORE the sales start and I do some research. For example, I borrow J’s wireless headphones to film reels and know that eventually I should probably get my own.
I ask myself - would I buy this if it weren’t on sale? If not, I’m not saving money - I’m spending more money than I otherwise would. This is a key thing to remember about sales! You’re not saving 40% if it’s something you wouldn’t have bought, you’re spending 60% more!
I give myself as much time as possible. I’m a big fan of the 48-hour rule, but some sales don’t give us that much time. Do the best you can.
Is this purchase in my budget? And if not, and I really want it, where can I reallocate my money or let go of other expenses in order to make it work?
I visualize. It’s one week after I made the purchase. Am I using the thing? Am I happy? Do I regret it? It’s one month from now and I’m paying off my credit card bill. Am I still happy I made the purchase?
There you have it! If there are things you’ve been waiting to buy, make your list and come up with your plan.
Let me know what strategies you use and how it goes!
P.S. We also have this great "Should I Buy This" quiz? Answer the 5 quick questions and we’ll tell you.
MONEY MOVE OF THE WEEK
CELEBRATE YOUR GOAL MILESTONES.
Motivation is key when it comes to sticking with habits that move us toward our goals.
Two things that can make a huge difference:
Frequent reminders of your goals (and how achieving them will make you feel)
Getting to "win" or make progress on those goals (i.e. the satisfaction of checking off something on your to-do list, âś… but better)
You can do both of those things by turning your goals into "art." I use the word art 🎨 loosely - I’m by no means an artist but you can create a physical representation of your goal(s). Have fun with it!
That might look like a bar chart you color in as you hit different milestones or post-it notes you rip off (and rip up) as you tackle another $500 of debt. It can even look like tracking the numbers in excel (this is my art lol).
The important part is that you get to see and celebrate your progress along the way. I’d love to see what you create to track your goals! Please send me photos. 🤗
YOU GOTTA SEE THIS
DEFINE SIMPLE VS. COMPOUND INTEREST.
Interest can be money we’re earning (i.e. savings and investments) or money we’re paying (i.e. loans and credit cards).
All interest is not created equal and it’s important to understand how it works. Let’s break it down:
DEFINE: SIMPLE INTEREST. Calculated simply (pun intended) by multiplying the amount by the interest rate. For example, if you have a $1,000 loan with an annual interest rate of 15%, you’d pay $150 per year in interest.
DEFINE: COMPOUND INTEREST. Where our interest earns interest. Compound interest is magical when it comes to our investments but extra costly when it comes to our credit cards. Credit card interest typically compounds daily. So let’s say your $1,000 credit card balance earns $1 in interest in a day, the next day you’re paying interest on a balance of $1,001. This changes your overall interest rate to be higher.