Make This Big Holiday Decision Pronto

Are you going to give yourself the best possible holiday gift this year? I know you deserve it, but I need you to know that too!

I am talking about not overspending on gifts - when you spend more than you can afford out of a sense of love or obligation.

Stop it, right now. You need to put yourself in the equation.

I want to remind you of one of my guiding principles: True generosity is when a gift is as kind to the giver as the recipient.

So I ask you, is spending money on wants (gifts) this year generous to you?

Here’s what is definitely NOT generous:

• Putting holiday gift purchases on a credit card when you know there’s likely a good chance you won’t be able to pay off the balance when the bill arrives. The average interest rate on credit cards right now is more than 22%. That is painful just to write. It is insanely difficult—on top of expensive—to owe that much on an unpaid credit card balance.
• Using a Buy Now, Pay Later (BNPL) offer. It’s common now when you arrive at the e-checkout for an online purchase to be offered what seems like such a nice deal: you don’t have to pay the full amount but can chunk it out into four interest-free payments. I get the allure of these BNPL offers, but I think they can be dangerous traps. One risk is that you buy more because you owe less today. The other problem is that you don’t get the purchase paid off in the allotted payback period (typically 4 payments) and then the remaining balance is hit with a high interest rate charge.
• Spending a penny on gifts when you have high-rate credit card debt. Don’t “but Suze” me. If you already have high-rate credit card debt, every dollar of extra money you have should be directed at paying down that debt.

What is generous is thinking outside of the spending box to come up with meaningful gifts. Gift your time; babysitting or helping with chores you know someone has trouble handling or just dreads. Or consider low-cost crafting gifts. KT and I only make things for each other for gifts. Or gift yourself honesty. Let your family know that you aren’t buying gifts this year because you are working on building more financial security. I can guarantee you will receive a wonderful gift in return: people who love you will be so proud and understanding that you are standing in your financial truth.