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Loading ...5 simple ways to avoid overspending at the shops
October 15, 2008 by Josie Kay
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Beat the Retailers at their own Game
We are all prone to overspending. Ladies, just look at all the clothes you have purchased over the years, and half of them you probably don’t wear. If I calculated how much I have spent just on clothes since I started work at 15 years of age, I would no doubt be horrified (best to stick my head in the sand!).
The men are not going to get away with it either. From my experience they tend to purchase big ticket items, such as big screen TVs, power tools, and stereos.
I know life is for living, however, it is no secret that my biggest bug bear is credit card debt. If you are unable to pay for all your purchases by the end of the month, and you find this is happening on a regular basis, stop using your credit card. It is simple. You are spending more than what you earn and destroying your wealth long term.
Here are my top five simple ways to avoid overspending at the shops. Let’s not beat around the bush here. They are all obvious, but we all fall into the trap of spending money on stuff that ends up cluttering our lives or in the rubbish tip.
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Don’t get sucked in by ‘Buy Now Pay Later’. You might have all the best intentions of paying for the item within the interest free period, but think about why they offer it. The majority of people don’t manage to pay it off on time and then a huge interest rate kicks in, sometimes up to 30%. Finance companies have a responsibility to their shareholders. They are not a charity, and the customer is at the bottom of the gravy chain.
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Retailers spend millions of dollars on advertising and employ an army of marketing gurus to manipulate us. These people have spent years at University working out ways to get a slice of our hard earned money and they are on the winning side. After all, if they don’t win, they don’t have a job. Unfortunately, we were not taught how to play their game at school. Just remember that money you spend today is gone forever. Are you giving up tomorrow’s peace of mind?
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Don’t get sucked in by sales, especially if you don’t need the item. We know the original price, is ‘not really the original price’, just there to think we are getting bargain. A dress which had an original price tag of $200 is not a bargain at $100 is you don’t wear it often. Before I purchase an item of clothing, I think about the number of times I might wear it e.g. if a dress cost me $100, and I only wear it 10 times, then it has cost me $10 per outing (and I have a few of these in my wardrobe).
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Understand the true cost of buying on your credit card. If you purchase an item for $100, and the interest rate is 18%, at the end of 12 months, that item has cost you $118. Credit card debt is at an all time high. If you have a problem, cut it up. Don’t worry you will survive (just like your parents and grandparents did before they were invented).
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Go grocery shopping with a list and a calculator? This way you will not exceed your budget. Remember that the bargains are usually found on the top and bottom shelves and you should never go grocery shopping if you are hungry.
Money is more about emotion, than logic. The key to wealth creation is knowing when emotion, or when you find the ‘must have at all costs feeling’ has clouded your judgment.
Repeat after me… “Watch out. Everyone is After My Money. I can outsmart them”. It works for my kids anyway. Good luck and enjoy the challenge of saving money.
Cheers and please tell all your friends and family about askjosiekay.com.au.
Josie Kay
P.S. Here are a few places to shop and save:
Online discount store* Lots of bargains here
Catalogue Central* - Get all your catalogs online instead of in your mailbox
Quickflix trial* - Dvd’s delivered to your door
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