This Week In Your Wallet: Out With The Old…
I hope your holidays were both peaceful and joyful and that you’re tracking ahead to a fantastic 2018. If you’ve been thinking about resolutions, you’re not alone. I’ve got to admit this piece by the wonderful writer Ann Patchett, who gave up shopping for a year, made me think — not just about the amount of money she saved by not buying but also about the amount of time that she gained (hours not spent trawling websites). I’m mulling over trying that. I’m also mulling over a bigger commitment to stretching and a couple of other resolution-type things.
About 41 percent of Americans usually make promises to themselves for the year ahead. As for the success rate? Just 72 percent of resolutions are kept through the first week, and less than half are maintained after six months. Whether your goal is slimming down, saving up or something else, there are some things you can do to make sure you carry your resolution through all of 2018. For one, don’t bite off more than you can chew — and set achievable benchmarks now, before we hit the first of January. For example, if you’re resolving to eat healthier, define exactly what that means to you. Use visualization to propel you forward by picturing your goal as clearly and specifically as you can (like choosing carrots over chips as a snack). Then, set your benchmarks — for example, start with choosing healthy options for one meal each day, and after you master that, expand to two or three.
Read This Before You Return A Gift
If you’re like more than half of Americans, you unwrapped at least one gift you’d rather not have. This morning on TODAY, I went over what consumers need to know about post-holiday returns — including recent changes to store return policies. This year’s rundown of return policies from ConsumerWorld.org revealed that Macy’s shortened its return window to 180 days, and Best Buy added a 15 percent restocking fee for certain items (like drones and DSLR cameras). Expect to receive store credit from the return — even with a receipt, it’s not likely you’ll get cash back or credit on your card. And if you’re looking for an extra gift to treat yourself: 42 percent of Americans take advantage of after-holiday sales, many to do a little self-gifting. It’s a good time to snag some deals, particularly on clothes, video games and, of course, the holiday gift-wrap and decor you’ll be able to stash for next year.
Deadline To Note
December 31 isn’t just New Year’s Eve. For many, it’s also something a little less glamorous — the deadline for spending all the funds in your workplace Flexible Spending Account (FSA) before they disappear. To recap: FSA funds — contributed tax-free to save money over the year — can be used for qualifying healthcare expenses. An estimated 35 million Americans have them, but the average user forfeits between $50 and $100 of that hard-earned cash each year when they miss the spending deadline (note: check your company’s policy — some extend for a few months into the next year). So, if you could use more sunscreen, lip balm, contact lens solution, hot/cold packs or condoms, now’s the time to shell out the remaining dollars. FSAStore.com has a list of eligible products to make the last-minute shopping easier.
On Retail “Therapy”
Finally, if you’ve ever impulsively shopped to deal with feelings of stress, anxiety or depression, you’re not alone. More than half of respondents to a recent Credit Karma survey said they’ve done the same. As for their reported stressors? Finances, emotional issues and family — in that order. No matter what’s worrying you, it’s a good idea to remember that although “stress-spending” might feel better in the short-term, “the crummy feelings almost always return,” writes Nicole Spector for NBC News. “They may be even worse once you’ve added a surprise credit card charge to the mix.”
She’s right — but changing habits like this are easier said than done. The first step is being aware. Try keeping a spending journal where you write down each of your purchases, then go back at the end of the month and highlight the ones that actually brought you joy. It’ll increase your awareness about impulse spending. Another tip: Consider a 24-hour spending ban for non-essential purchases. Resigning yourself to sleep on a potential purchase before swiping your card might make you deal with your stress in a healthier way (like a bath, exercise or time with friends).
Have a great week,
Jean
