Consumer Tips—Everyone has reasons to stretch their dollars
The average American shopper spends 30% of his/her salary on discretionary spending (that is, things without immediate or practical use). We have compiled some consumer shopping tips for two reasons. First, if you want to save more of your paycheck for future needs, it’s a good idea to cut down on these non-necessary items. Second, if you want to better enjoy your consumer purchases—or make your dollars go further when you shop—it is easy to make your money work harder for you.
I just want a good deal
We all do. Everyone knows that waiting for sales and watching coupons are obvious ways to save money when shopping. Here are some other important, general tips to keep in mind if you want to save money on your purchases.
Ask for bulk discounts
You don’t have to go to a warehouse store to get bulk discounts. Many retailers offer discounts based on quantity or case purchases. Everything from popsicles and wine to hardware and books may qualify for a bulk discount. Of course, you always want to consider the realistic amounts you will use of a given item.
Avoid warranty contracts and service plans
Larger items can require very costly service and repair bills. It may make sense to insure autos, big screen TVs, or computers with the vendor’s service plan. The key word is "may." For example; if you don’t plan on owning a car past the manufacturer’s warranty, breakdown coverage is lost money. Similarly, many electronic items come with a one or even a two-year warranty. If you avoid breakage coverage on every purchase you ever make, you will probably save much more than the cost of an occasional repair. Of course, if you have a bad history with keeping appliances and electronics in working order, a service plan might be a good idea. Always read the fine print; many contracts don’t cover replacement or repair of damaged items.
Buy only what you will use
This is a tough one to remember. We never know our future needs, but chances are, it’s better to consider keeping the cash than buying something that "may come in handy." If this weren’t a common experience, we wouldn’t have garage sales and thrift stores.
Never buy on impulse
We’ve all become infatuated with items in advertisements or on store shelves, only to find that the reality of owning the item didn’t quite meet our expectations. Slow down and consider your purchase before you make it—this is the best way to avoid "buyer’s remorse."
Never shop while hungry or depressed
This is a big one. If a shopper is hungry or feeling down, he or she may make purchases that would seem inconceivable under normal circumstances. Shopping while hungry is a fast way to buy more food than you may use. Shopping while "down" (the bane of binge shoppers) is a good way to revisit depression when the credit card bill arrives.
No price is fixed
Any retailer will match or beat another store’s price. But did you know that most retailers may give you a "sales" price if you say it will help your decision to buy? Don’t let "sales" pricing become your motivation; however, if you need to buy something, don’t be afraid to tell the sales associate, "a lower price could help me decide to buy."
Pay for high-quality when you buy high-use items
Sure, a higher quality item may cost more in the short run, but it will usually last much longer. Higher quality means that many items will last and perform much better. For example, cheap knives can rust, dull and stain, meaning that the buyer will want to replace them much sooner than a quality knife set. Durability does have a higher price, but durable goods can last a lifetime. We also aren’t so eager to replace our higher quality goods. Consider this when shopping for anything from adult shoes to furniture to car parts or oft-used tools.
Save money and go with low-quality for low-use Items
If a purchase will be used only once—or only occasionally—consider buying lower quality goods. For example, if you aren’t going to become a professional carpenter, and you have only one home project to complete in the foreseeable future, consider cheaper tools. Who wouldn’t want the best hammer? However, what is the point of owning the best hammer if it’s only going to sit in a drawer. Lower quality goods are ideal for short use or short term needs. If a child outgrows shoes every three months, are top-of-the-line shoes necessary?
Try to use things you already own
We often forget that we may have an equally useful or even identical item at home when we see something in the bright lights of a store. Take the time to recollect your home inventory. Can that weed-eater at home be fixed, or should you buy the one on sale? Can’t the garden hose hold up for at least another summer? Did I forget to pull some dishes out of storage? Using old items is not only a great way to save money, but the owner can find pride in reusing well-made items.
Used goods are often available
Thrift stores, classified ads, garage sales, message boards, and word of mouth are some of the best tools for getting great deals. Anything you may consider buying can be found used. Patience and perseverance are all you need. Even the latest video camera or stereo equipment can become available in the classified ads. How is this possible? People get buyer’s remorse or buy things they can’t really afford. Used goods often have transferable warranties and are often found in completely unused condition.
If you're living on a fixed budget, check out these tips for making your dollars go further.
We’re here to help
For 50 years, we’ve helped members stretch their dollars. If you want to review your spending habits, set up a budget, or shift more of your money from discretionary spending towards making investments in your future, talk to us. We can look at reducing the amount of interest you pay on cards and loans. We can set up your accounts for automatic savings or automate your bill payments. Perhaps you want to discuss home equity and consolidation loans. We can even help you with tax-advantaged financial planning. If your expenses have become too large for your income, we recommend Consumer Credit Counseling Service, one of the non-profit organizations we help support.
We know that everyone loves to shop, but we also know that anyone can enjoy a disciplined budget and a secure future.