NOW OPEN: the MSE Forum 'Ask An Expert' event. This time we'd like your questions on TRAVEL & HOLIDAY DEALS. Post by Wed and deals expert MSE Oli will answer as many as he can.

MSE News: Spending less at Christmas meant more enjoyment, MSE poll finds

"Those who cut back had a better time over Christmas than those who spent more than usual..."
«1

Replies

  • jobdone1jobdone1 Forumite
    836 Posts
    Tenth Anniversary 500 Posts Name Dropper Combo Breaker
    Forumite
    Most of my pay is tax, national insurance, council tax, v.a.t, fuel duty, road tax,insurance premium tax, interest on mortgage and then a couple of quid for me how though full.
  • CaddymanCaddyman Forumite
    342 Posts
    Tenth Anniversary 100 Posts Combo Breaker
    My Wife and I spend very little at Christmas anyway. Ten years ago, I told everyone in my circle of family and friends that I would no longer buy Christmas presents for any of them, with the exception of my Wife. I remember the disbelief that flashed across people's faces followed by the usual round of comments that 'Christmas is the time for giving'. It made me realise just how materialistic people had become. My Wife only buys something for her Mum and Dad (I don't buy for mine!) and we treat them to Christmas dinner. The result has been financially very rewarding for us both! We buy each other one or two nice things and make sure that we have plenty of food on the table. It's fantastic to come out the other side of Christmas with absolutely zero debt. Not being under any pressure to spend anything on others because it is considered the norm, is really quite wonderful, especially when I hear my neighbours woes of how much debt they got themselves into just trying to please others.
  • completely misleading use of those statistics. what's the point?
  • Why would you want to be a cheapskate at Christmas?

    More to the point, see "paradox of thrift" for why individual acts of selfish scrimping will make us all poorer in the end..... Even those who scrimp.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”

    -- President John F. Kennedy”
  • ConsumeristConsumerist Forumite
    6.3K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    Forumite
    Why would you want to be a cheapskate at Christmas?
    Yes. Let's all pile the cost of Christmas festivities on to the plastic. The bankers will get richer while we get poorer. So we can't spend as much to make the retailers richer as well, so they cut jobs . . . blah, blah, blah. :eek:

    Someone please spare us from the preachers of doom.

    Happy New (hopefully debt-free) Year to everyone.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • I completely agree with the Consumerist.

    The paradox of thrift only seems to apply if you don't put that purchase on credit.

    There was an article on a German site that said that saving up for something big actually has a more psychologically gratifying effect than the purchase itself.
  • nainoonainoo Forumite
    4.7K Posts
    Part of the Furniture 1,000 Posts Combo Breaker I've been Money Tipped!
    I don't believe in banning Christmas presents but I believe in spending less and within your means

    Its a healthy balance between splashing out on some extra treats and enjoying the simple things like spending TIME together as a family without over indulgence or the pressure of worrying about not even being able to afford the basics

    We had a simple Christmas this year and enjoyed it more as it brought home to us the value of FAMILY as we nearly didn't get to spend it together at all and all the money or presents in the world would never have made up for that! :(
  • Frozenace wrote: »
    The paradox of thrift only seems to apply if you don't put that purchase on credit.

    The paradox of thrift applies either way.

    The important issue is a reduction in demand due to a decrease in consumer spending. Whether that reduction in spending is from an increase in savings or an decrease in debt is not relevant. Either way, we all ultimately end up poorer as a result.

    The paradox of thrift states that if everyone tries to save more money during times of economic recession, then demand will fall, unemployment will rise, and total savings in the population will reduce because of the decrease in consumption, employment and economic growth.

    The paradox is that total savings will fall despite individual savers attempting to increase their savings, as the decrease in economic activity makes us all poorer in the end.

    As with many things in life, the selfishness of individuals can lead to short term gain for them, but will then eventually lead to long term pain for everyone including them.

    So while nobody is suggesting individuals should take on reckless or unmanageable levels of debt, the concept of encouraging everyone to decrease spending is fundamentally flawed.

    If everyone did it, we'd all get poorer as a result.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”

    -- President John F. Kennedy”
  • tara747tara747 Forumite
    10.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Forumite
    The paradox of thrift applies either way.

    The important issue is a reduction in demand due to a decrease in consumer spending. Whether that reduction in spending is from an increase in savings or an decrease in debt is not relevant. Either way, we all ultimately end up poorer as a result.

    The paradox of thrift states that if everyone tries to save more money during times of economic recession, then demand will fall, unemployment will rise, and total savings in the population will reduce because of the decrease in consumption, employment and economic growth.

    The paradox is that total savings will fall despite individual savers attempting to increase their savings, as the decrease in economic activity makes us all poorer in the end.

    As with many things in life, the selfishness of individuals can lead to short term gain for them, but will then eventually lead to long term pain for everyone including them.

    So while nobody is suggesting individuals should take on reckless or unmanageable levels of debt, the concept of encouraging everyone to decrease spending is fundamentally flawed.

    If everyone did it, we'd all get poorer as a result.


    Oh, I do apologise for my utter selfishness in saving my hard-earned, rather than spending it all on tat.

    Where shall I go to hand over my savings and atone for my sins?
    Get to 119lbs! 1/2/09: 135.6lbs 1/5/11: 145.8lbs 30/3/13 150lbs 22/2/14 137lbs 2/6/14 128lbs 29/8/14 124lbs 2/6/17 126lbs
    Save £180,000 by 31 Dec 2020! 2011: £54,342 * 2012: £62,200 * 2013: £74,127 * 2014: £84,839 * 2015: £95,207 * 2016: £109,122 * 2017: £121,733 * 2018: £136,565 * 2019: £161,957 * 2020: £197,685
    eBay sales - £4,559.89 Cashback - £2,309.73
  • ConsumeristConsumerist Forumite
    6.3K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    Forumite
    . . . So while nobody is suggesting individuals should take on reckless or unmanageable levels of debt, the concept of encouraging everyone to decrease spending is fundamentally flawed. If everyone did it, we'd all get poorer as a result.
    Your earlier question was: "Why would you want to be a cheapskate at Christmas?"

    The answer for many (not everyone) is: Because I can't afford it.

    You seemed to be suggesting that people who cannot afford to spend lots on Christmas should recklessly go out and spend anyway.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
This discussion has been closed.
Latest MSE News and Guides

Energy Price Cap change

Martin Lewis on what it means for you

MSE News

Best £1 you've ever spent?

Share your most impressive bargains

MSE Forum