Finance Matters

Managing your financial resilience during the Boxing Day sales

Although Boxing Day can bring joy to many who are seeking to get a little extra during the festive period, it can also be an opportunity for unnecessary overspending. Here are some tips to manage your financial resilience during the Boxing Day sales.

Boxing Day sales are highly anticipated every year, as an opportunity for retailers to cut prices and sell excess stock over the festive period. The tradition, which originated in the United Kingdom was traditionally a day where gifts were given to those less fortunate is now celebrated as a shopping holiday. It is not uncommon for retailers to open their doors at around 6am on Boxing Day, to draw shoppers towards their stores to sell as much as possible. Keep in mind that Boxing Day sales also take place online and on the high street.

Although Boxing Day can bring joy to many who are seeking to get a little extra during the festive period, or to spend money gifted to them from friends and family, it can also be an opportunity for unnecessary overspending. Here are some tips to manage your financial resilience during the Boxing Day sales.

The fear of missing out – controlling impulses
The idea of missing out on a bargain can be a daunting prospect for many of us. The idea of being disappointed or missing an opportunity to save some money can drive consumers into purchasing beyond their means. If someone else is getting a good deal, this is also a driver for consumers to get in on a good deal. It’s important to be thoughtful of purchases that you make, especially if you feel like you are missing out.
Wants vs. Needs
A practical way to save yourself from unnecessary spending is to decide whether the product that you have seen is a want or a need. Perhaps you’ve seen a new pair of shoes with a 30% discount, and you feel compelled to purchase them. Before proceeding to the checkout, ask yourself if you need this new pair of shoes, or do you just want them because there is a 30% discount available. Using this rule of questioning decisions can be helpful, as it can ultimately save you a lot of money. This is especially important when shopping online, as it only takes a couple of clicks to make a purchase. Take time to think carefully about whether it’s worth it, perhaps even turning off your devices for a while to help you decide.
Beware of buy now, pay later
The temptation to pay for a product later is strong, this is especially true if there are discounts available on the products that you have seen online. Despite the discounts attached to products during the Boxing Day sales, it’s important to be very careful of buy now pay later schemes as you may end up paying more than full price for your product, due to having to pay additional interest for borrowing.
Have responsible fun
Many of us find pleasure and have a lot of fun when shopping for bargains. It’s important to enjoy yourself and look after your financial resilience while doing so. Perhaps consider taking a short break between adding an item to your basket and proceeding to the check-out. This breathing space will allow you to think about the purchase that you are about to make. Remember, many retailers are not able to give refunds or accept returns on certain items, especially if they have a significant discount attached.

Prepare for the future

Preparing for your financial future is important, as unexpected costs can occur for all of us. Having some money set aside to reduce the pressure of these costs can help to relieve stress and enable you to have a fulfilling service career. Although the festive period is coming to an end, it’s a great time to start saving up for next year. Why not learn more about how you can start saving with Serve and Protect CU today via: www.serveandprotectcu.co.uk/save

The information provided in this article is for guidance and educational purposes only. Police Credit Union Ltd. does not offer regulated financial advice. Please seek independent financial advice.

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Serve and Protect CU is a trading name of Police Credit Union Limited, Guardians House, 2111 Coventry Road, Sheldon, Birmingham, B26 3EA. We are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority & Prudential Regulation Authority under registration number 213306.

Police Credit Union Ltd. is a member of the Financial Services Compensation Scheme. This means a members savings are covered by the FSCS depositor guarantee scheme up to the value of £85,000. Under the Distance Marketing Directive, you have the right to cancel your savings account within 14 days of opening without financial or other penalty.

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