Retail Therapy

According to the retail figures  December shoppers went for feel-good spending with growth in the sectors of cafes/restaurants, jewellery and hairdressing/beauty (Dominion Post – 7/01/2010). I have to say I wasn’t responsible for any of this particular increase in spending! It’s strange reading each month’s analysis of consumer spending with analysts eagerly waiting for that growth in spending that will indicate we are returning to ‘better times’. In contrast my own monthly analysis of our household spending is driven the other way, it is a good month when we spend less than we earn and spend less than the month before. December was our household’s lowest spending month in the last six months – this is the first time in years that come January I’m not afraid of my December credit card bill. I’m not sure that I want to help the economy recover short term by returning to my old over consumption habits. Long term I feel I can do more for our economy by reducing my personal debt while also planning for my retirement.