If You Don’t Need It, Then Don’t Buy It!

A very popular shopping day will be arriving near the end of November. How do I know this? Rest assured – the Marketing Machine will not allow me to forget about it for one single instant! Everywhere I go online, there’s an ad about the “low, low prices!” I’m encouraged to “act now” so that I don’t miss out.

Look… I get it. Retailers want to make money. To do so, they need us to give our money to them. That’s how the game is played.

I want you to win the game. So here are my rules for surviving the Spending Season financially intact.

1. If you don’t need it, then don’t buy it.
2. If you do need it, then it’s okay to buy it.
3. If you do buy it, pay cash.
4. If you pay off your credit card bills in full every single month, then you can use your credit card.

Those are the 4 rules to getting through the upcoming Spending Season. If you follow them, then the odds are very good that you will not suffer from a debt-hangover come January of 2024… which is only 6 weeks away.

Rule 1: If you don’t need it, then don’t buy it.

This rule applies to everything on offer. Clothes. Televisions. Place settings. Bedding. Electronics. Subscriptions. Furniture. Large appliances. Liquor. Home decor. Gaming systems. Computers. Vehicles.***

If you don’t need the bright-and-shiny whatever-it-is that is being advertised to you, then keep your wallet closed. Retailers hire marketing teams that are extremely skilled at convincing you to buy things that you don’t necessarily need. Think about it… Until you saw the ad appear on your screen, you probably hadn’t even thought about getting the next whatever-it-is. You were perfectly content going about the business of living your life and enjoying your day, when the ad popped up and suddenly you were thinking…

“Maybe I do need <insert bright & shiny whatever-it-is> now that this marketer has put this ad in front of my face.”

Do yourself a favor. If you didn’t need it before you saw the ad, then you probably don’t need it after seeing the ad. Scroll past the ad. Choose the text-only option for your reading pleasure. Don’t buy something if you don’t need it.

Rule 2: If you do need it, then buy it.

Obviously, there are those of you who do need to buy certain items. And getting you needs met at 60% off is a very sweet deal. Let’s say your winter boots are 5 years old and basically held together with tape and prayer. It’s time to replace them. This is probably a very good time to do so since clothing retailers are putting things on sale.

You know your situation better than I do. If you truly need to buy whatever-it-is, then go ahead and do so. After all, getting a discount is always nice when you have to buy something that you need. Discounts help your money go just a bit farther.

Just make sure that you’re following rule 3 when you make that purchase.

Rule 3: If you buy it, then pay cash.

Yes. You read that right. If you have to buy something, that’s no reason to go into debt for it. Pay cash. I’m hoping that you had the good sense to save up for your desired item first before making a purchase, i.e. the money is sitting safe and sound in your sinking fund. After all, this very special shopping day isn’t a surprise. Everyone knows that it comes up at the same time every year.

If you’ve been waiting for the discount, then surely you were wise enough to create a sinking fund for this particular purchase. Ideally, you’ve been squirrelling a little bit from every paycheque into a dedicated sinking fund to pay for the things you want this Spending Season.

Again, do not go into debt to make this purchase. The next six weeks are going to be a blur of opportunities to spend money. Many celebrations are going to be taking place. If you’re the one hosting, you’re going to be paying a tad bit more to feed your guests. And if you’re lucky enough to be one those said guests, then I’m assuming that you’re gracious enough to bring some kind of gift for the host/hostess of the event you’re attending. As for all of the various celebrations, there’s a good chance that some of them will involve gifting of some sort.

I call this the Spending Season for a reason. Do not go into debt trying to make everyone’s memories perfect. Buy if you must but spend cash when doing so. The beauty of cash is this – once it’s gone, it’s gone. There’s no lingering debt for you to worry about or on which you will be charged interest.

Rule 4: If you’re have the cash to pay off your credit card bill in full, then you can use your credit card.

This rule is only for those who pay off their credit card bill in full every single month.

You alone know if you’re one of these people or not. Be completely honest with yourself. Failing to pay off your credit card bill every single month means that you’ll be paying up to 29.99% more for every single one of your purchase. That’s 30% more! After a couple of months of compounding at 29.99%, that 60%-discount on your bright-and-shiny whatever-it-is will have been re-directed towards the accruing interest on your credit card.

So, if your sinking funds are stuffed to the brim with sufficient cash to cover your credit card bill, then buy your whatever-it-is with your credit card. Then pay your balance in full when the bill comes due.

That’s it.

Those are the rules for getting through the Spending Season without doing too much financial damage to yourself. Despite what the Ad Man and trusty sidekick, the Creditor, will tell you, there’s absolutely no impediment to your happiness if you resist the urge to spend money on things you don’t need.

Again, if you truly need something, then this is probably a good time to buy it since the discounts are flowing hot and heavy. Just don’t go into debt to buy whatever-it-is. Things are tough enough with inflation still ravaging your dollar. You don’t need inflation working in tandem with sky-high credit card interest charges. That’s like sticking two forks in your own eye! Ouch!

Don’t spend if you don’t have to. If you must spend, pay cash. And if you always pay your credit card balance in full every month, then it just might be okay to use your credit card.

That’s it – those are the rules. Wishing a very joyous, merry, happy Spending Season to All!

*** Yes – that’s right… vehicles. Today, I received an email offering me a “loyalty discount” on a brand-new luxury SUV if I bought it before Black Friday. For those who are curious, my “loyalty” is worth up to 1.5%. I laughed and laughed and laughed, then sighed,… and then I deleted the email.