While the economic downturn has certainly caused its share of hardship, one silver lining has existed for consumers — sale prices. With everything from cars to home furnishings to clothing on sale, it’s been easy to take advantage of bargains. But before you pull out the wallet and pat yourself on the back for saving a bundle on that new purchase, it’s worthwhile to ask yourself if it really is a bargain after all. Here are some ways to help ensure that you are REALLY spending wisely.
How you pay is almost more important than how much you save. If you are paying with cash or a debit card, you really are pocketing the savings. If you are paying with a credit card and not immediately paying off the balance, that 20% you just saved really isn’t savings at all. In fact, you will probably lose money on the deal.
Has this ever happened to you? You’re been enticed by that 40% off sale and really do need one item, so you walk into the store, then see another three or four items you don’t really need, but end up buying them anyway? Overbuying is an epidemic that’s hard to overcome. If you don’t think you have the discipline to buy the one item, then leave the store, try bringing enough cash to buy that item and no more, so you stay on budget.
The bigger the ticket item is, the more important it is to do some research up front. Decide what you want and how much you can afford to pay for it before you start shopping. Ask friends or business associates about their experience with the product you want to buy and where they bought it. Check consumer publications on the newsstand, at the bookstore or online. Once you have made a decision, shop around. You can save hundreds by taking the extra time to see what deals stores are offering.
Once you’ve brought that fancy new widget home with you, hold onto your receipt, owner’s manual and warrantee. If something goes wrong, you’ll be able to troubleshoot the problem or get the product serviced or replaced more easily.
