Walking through Rundle Mall yesterday, I became aware of the disturbing trend for retailer’s to screw your future financial security by making you feel entitled. The appearance of “wear now, pay later” came some time ago. I do wonder what people will wear in a couple years when they’re trying to pay back the clothes they bought a few years earlier, but still need to keep up appearances. The most recent Christmas focused one I saw was ‘dream big, pay later’. It sounds great in theory but take a moment to look forward to next Christmas. Faced with the reality of paying back the $5,000 you spent on jewellery and a watch you bought last year (and had the most amazing Christmas ever…), how are you going to afford to make next year’s Christmas as exciting as last year. At what point do you start paying off your previous purchases? Interest free is great but at some point you’ll have to go without to pay back the debt! Buy now, pay later will be one of the worst financial decisions you’ll ever make.
Simple solution. Live within your means. Don’t borrow to purchase something that decreases in value over time. If you cant afford it now, don’t get it.
There is so much more to Christmas than an expensive gifts. Don’t worry about what your friends are posting on their Instagram and Facebook pages Christmas day. Don’t feel like you have to keep up, or are missing out. 5 years from now they’ll be financially stressed and still paying off their purchase’s. You’ll be financially comfortable and still enjoying everything that Christmas is meant to be.
You are entitled. Entitled to make sensible decisions for yourself and your family’s future. Have a great Christmas! (this year and next)