Don’t Let Emotion Drive Last Minute Holiday Overspending – Presented by Mark K. Lund, Financial Advisor in Utah

Financial Advisor Utah

The holidays, especially Christmas, are supposed to be a time of joy and goodwill. But when you’re feeling the pressure to give a “significant” gift, not only are you the opposite of joyful, but that compulsion and the looming deadline can cause you to overspend.

It’s one of the areas where emotions and financial behavior are closely intertwined.

Nathan Astle, a financial therapy consultant, writes, “A significant reason for holiday overspending is a genuine desire to share love and joy with those who matter most. If that is managed, that can be an excellent thing. If that expression of love comes with resentment toward yourself or others, giving loses much of its joy.”1

Writing for U.S. News, Erica Sandberg gives some practical ways to keep emotions from goading you into overspending on the holidays. And a great place to begin is by remembering that a Christmas gift is not the ultimate expression of your love. In fact, there’s a good chance that a few months from now that expensive gift won’t be remembered.

“Try to recall a single gift that you received for Christmas last year,” Sandberg writes. “If nothing comes to mind, you’re not alone.”

Another behavior that inevitably leads to overspending is not keeping track of your gift purchases. Instead of just buying until you’ve completed your Christmas list, start with an overall amount you can afford to spend, then budget for each gift. And if you can shop carefully for some deals, that may mean more money for the other gifts.

It’s also acceptable to pare down your list so that you’re not buying gifts for people simply out of obligation.

Another tip is to acknowledge the emotions that can trigger overspending. For example, last minute desperation.

“Our financial behaviors are highly connected with our emotional state,” says Astle. “We often overspend because we get caught up in the moment’s feelings.” He adds that while it’s completely natural to have emotions, they shouldn’t be the primary guide for our financial decisions.

Finally, it’s far too easy to overspend on ourselves. According to a recent survey by Shopify, 64% of Americans are either likely or certain to use holiday sales to shop for themselves. Sandberg suggests adding yourself to your Christmas list, along with the amount you’ve allotted to spend on yourself.

It’s easy to decry the excessive commercialism of the holidays and yet we can find ourselves feeling that not participating will make us a Scrooge. The answer is to step back from the emotions, come up with a reasonable spending plan, and look for opportunities to express love to friends and family in ways that won’t sink our finances.

We wish you and your family the happiest of holidays, and hope that this season and the new year are filled with joy.

If you ever have any questions about your investments or retirement plans, please feel free to give me a call at 801-545-0696.

Regards,
Mark Lund
Stonecreek Wealth Advisors, Inc.
11576 S State Street, Bldg. 1002
Draper, UT 84020

Sources:
1. http://go.pardot.com/e/91522/g-on-gifts-this-holiday-season/948vh7/2152926843/h/HXyPURFNtjzcsy-S0e5QRfmUcISr8vuPj-KYU9O0sxk

Disclosure:This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by Efficient Advisors, LLC (“EA’) for Mark Lund, Mark is a Financial Advisor in Utah. He is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Planner, Investment Advisor and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment management and retirement planning for individuals and 401k consulting for small businesses. Mark’s newsletter is called The Effective Investor Newsletter. Cities served in Utah are: Salt Lake City, Salt Lake County, Utah County, Park City, Murray City, West Jordan City, Sandy City, Draper City, South Jordan City, Provo City, Orem City, Lehi City, Highland City, Alpine City, American Fork City. The views expressed herein are exclusively those of Efficient Advisors, LLC (‘EA’), and are not meant as investment advice and are subject to change. All charts and graphs are presented for informational and analytical purposes only. No chart or graph is intended to be used as a guide to investing. EA portfolios may contain specific securities that have been mentioned herein. EA makes no claim as to the suitability of these securities. Past performance is not a guarantee of future performance. Information contained herein is derived from sources we believe to be reliable, however, we do not represent that this information is complete or accurate and it should not be relied upon as such. All opinions expressed herein are subject to change without notice. This information is prepared for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. You should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. You should note that security values may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Investing in any security involves certain systematic risks including, but not limited to, market risk, interest-rate risk, inflation risk, and event risk. These risks are in addition to any unsystematic risks associated with particular investment styles or strategies.

Category: Blog, Newsletters

About the Author ()

Mark K. Lund is the author of The Effective Investor, a #1 Best Seller, and founder of Stonecreek Wealth Advisors, Inc. an independent, fee-only, Registered Investment Advisory firm. He has provided articles for or been quoted in: The Wall Street Journal, The Salt Lake Tribune, The Enterprise Newspaper, The Utah Business Connect Magazine, US News & World Report, and Newsmax.com, just to name a few.  Mark publishes two newsletters called, “The Mark Lund Growth Report” and “Mark Lund on Money.”  Mark provides CPE (continuing professional education) courses for CPAs.  You may also have seen him on KUTV Channel 2, or as a guest speaker at a local association or business. Mark provides investment and retirement planning services for individuals and 401(k) consulting for small businesses. In his book, The Effective Investor, Mark exposes the false narrative magazines, media, big Wall Street firms, and most advisors want you to believe. The good news is that Mark will show you that you don’t need their speculative ways of investing in order to be a successful investor. Get a free copy when you schedule your initial consultation.

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