Basic Business Resources

The day after Christmas and New Year’s are traditionally two of the hottest shopping days of the year, and for good reason. Retailers attempt to unload items by offering once-a-year deals through hefty discounts and offers. Consumers, on the other hand, try to find the lowest price for those goods that they desire, but do not with to pay full price for. Obviously, the success of the sales of the day after Christmas for so many years illustrates an important point of the free market system.

There are no government interventions, with bureaucrats ordering which items should be purchased, who may buy what, and then robbing the consumers of the rest of their money on the way out the door. Simply lower the prices of certain goods, and retailers and consumers will be able to meet and exercise their right to freely choose which items and goods are best for them.

While I would never discourage any person from purchasing anything he or she thinks it in the best interest to obtain, a little caution should be used when shopping, when good deals are present or not. With the past year of high foreclosure rates and a housing market slump, financial prudence may be a more important habit to establish at the end of 2007 than continuing a habit of over consumption.

Homeowners who have been financing their lives with credit cards and taking out larger and larger mortgages every few years to pay off mounting bills should absolutely take stock of their current situations. The credit trap is a deadly one to fall into, which can lead to an inability to save money, bankruptcy, or foreclosure. Especially if an unexpected financial crisis hits, a family relying too heavily on credit will be unable to sustain their current quality of life, however overblown it may be.

This, obviously, leads us to a strong recommendation that saving money, rather than borrowing or spending, may ensure homeowners and consumers in general enjoy a prosperous 2008, without the worry of losing their homes or living with a scarred credit. Spending money and enjoying the fruits of one’s labor is one of the great joys of life, of course, but having a substantial savings account ensures financial security. It is a much happier life than the one lived by many families, who overspend and borrow money to acquire more “stuff,” but are always wondering if their next paycheck will be their last, and what they would do if something unexpected came up.

The holiday season is a good time for homeowners to engage in the free market system with retailers and acquire some last-minute deals on necessary. But taking the spending spirit too far should be warned against, and consumers who drain their finances too far may not be prepared for the events that inevitably disrupt one’s life. No amount of “stuff” is any consolation when facing the loss of it all due to bankruptcy or a foreclosure auction. Nothing that we say will discourage consumers from consuming, of course, but a little extra caution to look out for one’s finances in every season, and plan for the future instead of simply enjoy the present, should be taken into consideration by every homeowner.

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