Watching Out for Your Financial Wellness
By Valerie S. Nosek, Ease@Work EAP Coordinator
Individuals and businesses alike have felt the sting of the current economy and are struggling to meet their budgets and expenses. And, as a result of a tighter grip on every dollar, everyone is trying to limit spending – or at least make the smartest spending choices.
It’s no surprise retailers are feeling the pressure, too. After all, less disposable income means people will think twice about making a purchase. Still, with the holidays just around the corner, retailers are gearing up to get into “the black” for 2009. The sales circulars are readied with out of this world deals, and they’re all vying for your hard-earned dollars.
But watch out! Some deals may be just too good to be true.
Sure, you may get excited about seeing that 40-inch LCD HDTV on sale at the big box store around the corner for that incredibly low, low price – heck, they’re practically giving them away…but are they? Read the fine print.
What you will find is most of the great priced ads this season will have extreme limitations. For example, the store with the cheap televisions may only have one or two in stock and once they’re gone, they’re gone. No getting it from another store, no back-ordering at that price, no rainchecks.
And, if you are lucky enough to get a raincheck, that doesn’t mean you will ever see the item you wanted to purchase. According to an article at CNN.Money, “Dirty Secrets of Black Friday ‘Doorbusters,’” often stores will never have the same item (same model number) in stock again, making your raincheck useless.
Another thing to watch for in those super sales are “derivative models.” These are items that look like the standard model, but really have lesser features if examined closely. Most consumers don’t even know they’re buying a scaled-down model, unless they’ve carefully compared model numbers and product options.
So, what’s up with the sales this year?
The ads can’t be considered deceptive because the limitations are clearly spelled out – even if in small print. What the stores are banking on is that once the customer has waited in line and is in the doors, they’re going to shop there, even if the particular item they wanted isn’t there. It’s at this point that consumers will need to exercise “critical shopping” skills to discern between what’s really a bargain and what’s not. Another store may have the same item for a better price.
Managing Your Money Today…and Tomorrow
In reality, we all should be exercising our “critical shopping” skills on a regular basis, not just during the holidays. Keeping budgets in check is a 24/7, 365-day process that builds and compounds as the months and years go along.
As a good example of how managing money is not a one-time or hit-and-miss task, just think about the 401K savings process where it’s all about regular contributions, compounding funds overtime to build a retirement nest egg. Conversely, consider the downward spiral of how easy it is to get into “a world of hurt” caused by mismanaging credit and missing crucial payments.
Financial problems have a way of sneaking out of the wallet and infiltrating other parts of people’s lives. Couples can have marital or relationship problems about money and spending; financial stress keeps people up at night and causes physical symptoms, such as migraines, ulcers or worse; anxiety about bill collectors calling may cause a good employee’s performance to decline.
This holiday season, don’t get caught up in gifting pressures. Know your budget and stick to it. You may even want to participate in Buy Nothing Day 2009. Make it a priority not to go into the new year with a spending hangover.
We understand the link between employee financial wellness and productivity in the workplace. Ease@Work offers organizations and their employees the mental health benefits associated with an employee assistance program (EAP) along with financial and legal consultation services.
