"It's the most wonderful time of the year," Andy Williams sings in the classic carol, but it's also the most expensive. Between hosting and attending holiday parties (wine for the hostess! new sparkly top!), gifts, and travel, the bill for holiday bliss can be a big one, which leaves you with more than family dynamics to stress about. (Most Americans rank holiday shopping as more stressful than traveling or spending time with extended family, according to a survey from e-commerce platform Needle.)
And here's what makes it worse: in a study from Credit Karma, more than half of respondents said they'd impulse-shopped to deal with feelings of stress, anxiety or depression.
"Stress spending is a bit like having coffee while you are stressed: It's an impulsive behavior that you think will calm you down, but all it does is make you feel even more jittery and anxious," Teodora Pavkovic, a psychologist and life coach tells NBC News.
"It's a vicious cycle because our excessive holiday spending plunges us deeper into debt, which then increase our feelings of fear, anxiety, guilt and shame," says Kelli Saginak, a life coach and professor, told the site.
Online spending in the U.S. is likely to grow nearly 15 percent in 2018 to a total of $124.1 billion. That's a lot of Tickle Me Elmos and Fidget Spinners. But don't worry, you can keep your holiday spending in check by avoiding these pitfalls.
You Don't Make a Budget
Savings for Christmas ShoppingClark & Washington
Got a holiday budget of $1,000? Sorry, that's not good enough. You also need to break that number down by person, Zaneilia Harris, author of Finance 'n Stilettos and president of Harris & Harris Wealth Management told US New and World Report. "The more organized you are and the more detailed you are, the better," she says.
It sounds like a job for excel, advises financial columnist Liz Weston. "Spreadsheets aren't exactly warm, fuzzy and cinnamon-scented," she wrote for the Associated Press. "But they allow us to see our total expected holiday spending and to make adjustments as necessary. (Adjustments are always necessary.)"
You Lean Hard on Credit Cards
Money Crashers
"Tons of research shows that people spend more money when they charge things," Kit Yarrow, professor emeritus at Golden Gate University and author of Gen BuY: How Tweens, Teens, and Twenty-Somethings Are Revolutionizing Retail told BankRate. "If you can pay with cash, you'll always be a little more aware of what those gifts cost."
You Let Your Emotions Get the Best of You
Timeline
Guilt gifting. Fear of missing out on a flash sale. When will turntables ever be this cheap again?!? Don't make yourself susceptible to the psychology of shopping.
If someone who wasn't on your budget gives you a gift, respond with a really thoughtful card or homemade gift—not by buying them an impulse bottle of fine Champagne. You want to show you value them, but that doesn't always require spending.
"What people have to remind themselves of is that money doesn't equal love or affection," Yarrow said.
Fire sales can also tap into our lizard brains and our fear of scarcity. Black Friday sales and weekend specials create emotionally charged and stressful shopping situations, and a fear of missing out can override common sense. "When everybody is grabbing for something, we feel we should be grabbing for it, too" she said.
Furthermore, don't let yourself be seduced by slashed prices and big savings, warns The Motley Fool. "If you buy a $500 dishwasher for $300, don't look at it as saving $200, view it as spending $300."
You Forget the Value of a Homemade Gift
Food in a Minute
"For some people, their love language is receiving things," Michelle Singletary, author of The 21-day Financial Fast: Your Path to Financial Peace and Freedom, told BankRate. Who's to say that "thing" can't be a homemade thing?
You can go big with a knit scarf or crocheted hat, or small with cookies, chocolate bark, jams, granola, homemade bread, soaps or candles. What about making beautiful, abstract watercolors and buying frames at Ikea? Aren't these gifts way more thoughtful than an Amazon gift card?
Or what about thoughtful vouchers? The parents of two-year-old twins will be overjoyed at a coupon for babysitting and your best friend would likely love lunch on you and a trip to the art museum.
You Fail to See the Big Picture
Small Business
A guaranteed way to spend your holidays feeling drained is to spend the next six weeks at the mall, looking for parking, and elbowing fellow shoppers out of your path at Williams-Sonoma. What makes the holiday season memorable is all the other stuff: fires, time with loved ones, twinkly lights, rich hot cocoa, and festive events.
Kelli Saginak suggests thinking about how to create a meaningful holiday season "with minimal stress on you, your body, and your bank account.: Ask yourself:
- How do I really want to feel during the holidays?
- What type of holiday do I really want to create and experience?
- What conscious responsible actions will allow me to spread holiday cheer, lower my stress and not add to my money problems?
Celebrating is not the same as shopping, Mary Hunt, founder of DebtProofLiving.com and author of 7 Money Rules for Life, told Bankrate. What we enjoy is the ceremony and the feast of the senses.
"The sights and sounds of Christmas were the reason [my family] loved the mall," Hunt says. "So I would just take a few bucks in my pocket to get a hot chocolate and a cookie. Our purpose was to go see Santa, or to go see the decorations and ride the train." She also remembered the most memorable year being the cheapest.
"The best Christmas we ever had was when we decided to spend $100. The $100 goes fairly quickly. So what do you do for the rest of the season? You visit, you make hot chocolate. We spent the holiday with people and not in the stores. It was, by far, the best holiday ever."
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Artificial Intelligence
Looking for a job? In addition to encountering those annoying never-ending job interviews you may find yourself face-to-face with an artificial intelligence bot.
Companies worldwide increasingly use artificial intelligence tools and analytics in employment decision-making – from parsing through resumes and screening candidates to automated assessments and digital interviews. But recent studies claim that AI does more harm than good.
While AI screening tools were developed to save companies time and money, they’ve been criticized for placing women and people of color at a disadvantage. The problem is that many companies lack appreciable diversity in their data set, making it impossible for an algorithm to know how people from underrepresented groups have performed in the past. As a result, the algorithm will be biased toward the data available and compare future candidates to that archetype.
The City’s Automated Employment Decision Tools (AEDT) law is designed to offset the potential misuse of AI and protect job candidates against discrimination. It was enforced on July 5th, 2023 in New York City - with other cities and states expected to gradually follow suit. Employers must now inform applicants when and how they encounter AI. Furthermore, companies have to commission a third-party audit of the AI software used, and publish a summary of the results to prove that their systems aren’t racist or sexist. Job applicants are able to request information regarding what data is collected and analyzed by the AI. Violations of the law can result in fines of up to $1,500.
Replacing Human Hiring Decisions
However, should a job applicant want to opt-out of such impersonal judgement by a bot, the new law's scope is quite limited.
While the law specifies that instructions for requesting an alternative selection process must be included in the AI screening disclosure, companies aren't actually required to use other screening methods. Not to mention that the law only applies to AI in hiring and not any other employment decisions. It also wouldn't apply if the AI, for example, flags candidates with relevant experience, but a human then reviews all applications, making the ultimate hiring decision.
Some civil rights advocates and public interest groups argue that the law isn’t extensive enough and that it’s even unenforceable. On the other hand, businesses say that it’s impractical, costly, and burdensome, and that independent audits aren’t feasible.
Responsible use of AI in hiring
Although this law may be a good first attempt to assign more regulatory guardrails around AI, it remains to be seen if it ensures the responsible use of AI in hiring processes. At the end of the day, perhaps recruiting talent should remain a human-made decision.
The good news is that AI can help companies without harming potential job candidates in many ways – such as connecting new employees with internal organizational information and company benefits during onboarding. Or helping employees to do their jobs more effectively rather than replacing them.
Jobs don't have to be miserable!
Though the wave of tech layoffs and the threat of a recession has overshadowed yesteryear's news of the great recession, everywhere you look, employees are asking for more — and getting it. Although this time of uncertainty could have given employers back the power, it's still in the hands of the workforce.
From Gen-Z's boundary setting and penchant for quiet quitting when they're being under-recognized, to labor unions and even the WGA writer's strike, we're in an era where workers can make demands about how they work — and where they work. And for many people, they want to work from home.
For many employees, full-time remote work offered newfound flexibility to work around their schedules — whether it be picking up kids from school, or working when they feel most productive. Many employees seized this freedom to escape big cities and relocate and prioritize their quality of life. Remote work lovers are demanding offices remain closed or requesting it as a benefit or work option. And if their company insists they return? Many would rather look for new jobs in the flourishing remote-first corporate environment.
However, some missed the structure of the office and its offers of accountability, collaboration, more amenities, and . . . friendship. But not all companies are created equal. Some hope to lure employees back by upgrading the office experience. Turns out, the millennial start-up with that Day-Glo ping-pong table and IPAbeer-on-tap isn’t actually the dream if it comes with a toxic work environment (we’re looking at you WeWork). As companies add in-office perks, employees are requesting more support, boundaries — and even arrangements like the four-day workweek.
For the best of both worlds, companies are adopting hybrid systems. However, reports from CNBC and BBC imply that this may be a taxing option. Having one foot in the office and the other in your office kitchen is far from ideal for most employees, research says.
LinkedIn’s 2022 Global Talent Trends report reveals that of the 500 C-level executives surveyed, 81% said they’re changing workplace policies to offer greater flexibility.
But according to CNBC, “emerging data is beginning to show that hybrid work can be exhausting, leading to the very problem workers thought it could solve: burnout. More than 80% of human resources executives report that hybrid is proving to be exhausting for employees. This is according to a global study by employee engagement platform TinyPulse. Workers also reported that hybrid was more emotionally draining than fully remote and more taxing than even full-time office-based work.”
BBC agrees, reporting: “Emerging data is beginning to back up such anecdotal evidence: many workers report that hybrid is emotionally draining … Workers, too, reported hybrid was more emotionally taxing than fully remote arrangements – and, concerningly, even full-time office-based work. Given many businesses plan on implementing permanent hybrid working models, and that employees, by and large, want their working weeks spent between home and the office, such figures sound alarm bells. But what is it specifically about hybrid working that is so emotionally exhausting? And how can workers and companies avoid pitfalls so that hybrid actually works?”
“Overall, human resources executives thought that hybrid and remote work were the most emotionally exhausting for employees, but that wasn’t the case,” Elora Voyles, a people scientist at TinyPulse, told CNBC.
So with every employee having various experiences and opinions about what works best for them and their lifestyles, it makes sense that people are job-hopping to suit their newfound preferences.
Frankly, some are job-hopping to enhance their compensation. Statistically, most people realize their greatest salary increases when they move from one job to another. Remaining at the same company for years and years often limits how much you can make as your career advances. One popular female finance guru, Cinneah El-Amin told Afrotech: “I am a staunch advocate for more women to job-hop, to get the money they deserve, and to stop playing small when it comes to our careers and the next step in our careers.”
The research supports this, with Zippia claiming: “Generally speaking, a good salary increase when changing jobs is between 10-20%. The national average is around 14.8%, so don't be afraid to ask for a similar increase. At a minimum, you should expect a wage growth of at least 5.8% when you change positions.”
However, a job search can be daunting, despite the potential benefits. But if you can land a role in a new company — and potentially boost your salary while you’re at it — you will challenge yourself and constantly keep learning. LinkedIn Learning, for example, is one platform that can help you level up your skills and give you an edge to land the job.
LinkedIn Learning allows you to take advantage of the moments that truly matter. It offers courses on subjects that will carry you through every step of your career. Their instructors have real-world experience.
Check out the LinkedIn Learning Pathfinder and it will generate a custom list of courses based on what you want to achieve. Learn more about recent top career development goals and acquire the skills to help you reach them.
Unsure what to do and how to start your job search? Let LinkedIn Learning be the first step you take in the path to a new and improved career.It's Southwest Companion Pass Season. Here's Why It's The Best Flight Deal on the Market
Southwest Companion Pass
There’s all this talk about solo travel. And for good reason — no wasting precious time waiting for others to get their act together, take the plans out of the group chat and actually buy the tickets. Going solo, you can be spontaneous. You can plan your trips according to your precise tastes. You can hop on any flight and fly awayyyyyy.
But what if each time you flew you’d get a free ticket? That’s what you get with the Southwest Companion Pass.
Award status, upgrades, lounge access — there are many perks in the frequent flier game. But one of the coveted holy grails is the Southwest Companion Pass.
What is the Southwest Companion Pass?
The Companion Pass is part of Southwest’s Rapid Rewards program. You get to choose one person to be your “companion,” and they fly with you for free (plus some taxes and fees) on every flight. That’s right. Two for the price of one. That’s half off each ticket if you split it! Whether you’re flying with a partner, family member, friend, or anyone else, they can tag along for free.
And it gets better: once you earn the pass, you can reap the rewards for that full calendar year … AND the next. That’s why people go mad trying to earn a companion pass during the early months of the year. The sooner you qualify, the longer you can use it.
There are also no blackout dates. There are no limits. And if you didn’t purchase the ticket (think: work travel, your companion, or a generous benefactor), there are no restrictions! As long as you’re the one on the plane, your companion can also … be on the plane.
You can also switch out your designated companion 3x a year. So, no need to stay in a relationship simply to get the most out of your companion pass! Ghost and fly away — with a whole new companion!
If this sounds too good to be true — it’s not. But there is one small catch. It’s kinda tough to earn this mega reward.
How to qualify for the Southwest Companion Pass?
You can qualify for the pass in one of two ways:
- Fly 100 qualifying one-way flights
- Earn 135,000 qualifying points in a calendar year.
Clearly, this is no small feat — especially if you’re trying to qualify ASAP.
So how do you actually earn the Southwest Companion Pass?
Don’t worry, there’s a path to earning this amazing reward without climbing on 100 flights or spending an exorbitant amount of money.
Earning 135K reward points may seem completely impossible, but it’s easier than it sounds. Simply sign up for a Southwest Credit Card and turn those spending habits into a rapid rewards account. Through the Rewards Priority Credit Card, earn points when using local transit and commuting, plus score major points and miles whenever you spend.
Stay with me here. This is not some scheme to get you into credit card debt. Many airline cards come with potential savings, giantic rewards, awarding you points, and cashback with every purchase you make that can be redeemed for travel. And often they can come with passive sign-up bonuses. If you spend a specific amount of money within a certain timeframe of opening the card, you can be in for a windfall of points.
Now that’s where the companion pass comes in:
- Southwest Rapid Rewards Premier
- Southwest Rapid Rewards Plus Credit Card
- Southwest Priority Credit Card
- Southwest Rapid Rewards Premier Business Credit Card
- Southwest Performance Business Credit Card
Southwest has three personal cards and a business card. Each of these cards offers rewards between 30K-80K points. In the past, people could open two cards and get a bonus that granted enough points to almost meet the minimum. However, with new restrictions on personal cards, you can only get one bonus every 24 months. Boo!
However, this doesn’t apply to business cards. If you’re eligible, have good credit, and not likely to spiral into insane credit card debt, you can open a business card and a personal card, and accrue 100K+ points. The Rapid Rewards Priority Credit Card will get you points after you spend money in no time.
Now to earn the rest of them.
The secret to gaining these credit card points is to plan your card sign-ups around big purchases. Just before a recent move, I opened a card . . . and the rewards came rolling in — a small balm to ease the pain of how exorbitant moving can be.
Put everyday spend — especially big purchases or bulk items — on your Southwest credit card and watch your award points quickly add up. Typically, you earn 1 point per $1 spent on your Southwest card and 2 points per $1 on actual Southwest purchases.
But there are other ways to earn points, including:
- Flying Southwest: Booking travel on Southwest earns more points. The cost of this travel will be worth it with your companion pass
- Shopping from Rapid Rewards Partners: Purchases with Southwest’s “Home & Lifestyle” and “Shop and Dine” Partners also earn Companion Pass qualifying points. While you shouldn’t make gratuitous purchases, browse Southwest’s partners to see if you could earn extra points for items you'd be purchasing anyway. All this, simply from enrolling in their Dining Program and shopping with their partners.
So there you have it! And since it’s almost Spring, get to earning and soon you’ll be flying two for the price of one!