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Monday, April 22, 2013

5 Shopping Tips For Saving Money

Have you already squeezed every last penny out of your budget? Maybe not. Thanks to free market capitalism, we can choose from a wide variety of products at a wide variety of prices pretty much any time we want to buy something. Unlike investing, saving money on purchases doesn't require any specialized training and is an easy way for anyone to stretch their budget a little farther.

No matter what your income level, you can give yourself more breathing room by becoming a savvy shopper. Here are five tips to help you get started.

Tip 1: Make the Store Your Last ChoiceMost people's default response is to go to a store anytime they need something, but that's not the only way to obtain a needed item. Ask yourself these questions:

Can I get it for free?If you don't need something right away, and you usually don't, it's worth searching on community ad sites like Craigslist or Kijiji, signing up with some local Freecycle groups, and asking around to see if anyone you know is getting rid of whatever you want.

Can I borrow it? 
This tactic can be a great money-saver for any item that you use infrequently or will only need to use once. For example, if you only need to use a drill once a year when you change apartments and have to reinstall your curtain rods, you can get by with borrowing a drill from someone else. Many home improvement stores even have tools you can rent. Likewise, instead of spending money on the newest bestseller novel that you will probably only read once, head down to your local library and see if you can borrow the book. (New to budgeting? Check out Six Months To A Better BudgetGet Your Budget In Fighting Shape and The Beauty Of Budgeting.)

Tip 2: Negotiate When Possible 
Some prices are set in stone, and it's a waste of time trying to negotiate with someone who won't budge. However, when you think there's some wiggle room, consider these strategies:

Can I negotiate a lower price?
While you probably can't negotiate the price on many items, like new DVDs or a package of gum, there are plenty of situations where you can negotiate, even in a retail store. For example, if an item is cosmetically damaged, a store may be willing to offer a small discount because that blemished items tend to be more difficult to sell. If a salesperson wants you to buy a bunch of extras with a new computer or cell phone plan, ask for a discount - the salesperson they may be allowed to offer discounts in order to close the deal on big-ticket purchases. Of course, if you're buying an item from a private party, you can always negotiate. Also, you probably already know not to automatically pay the sticker price on a car or house, because negotiation is standard practice on these major purchases and the sticker price is generally higher than the real amount the seller will accept.

Can I barter?
Barter can be difficult because many people are not accustomed to doing it and it's hard to find someone who wants the service or goods you have to offer in exchange for the what another person is selling. If you have some valuable products or services to offer, however, and you're purchasing from a private party, it's worth asking. Even if the other party isn't willing to barter for the entire item, he or she may be willing to at least reduce the price in exchange for an hour of your expertise.

Tip 3: Time Your Purchase
If you wait to purchase something until you really need it, you're likely to pay the sticker price, but with a little advanced planning, you can save big bucks. 

Will this item go on sale?If you want an electronic good, you will probably have to wait patiently after it is introduced - a sale will emerge once a newer model comes out or the regular price will drop as supply increases and demand drops. As new items become more popular, even if they don't officially go on sale, you may be able to get a good deal on eBay. Certain everyday items, like groceries, toiletries and cosmetics, will always go on sale sooner or later, providing an opportunity for you to stock up when your favorite brands are priced at a discount. For anyone who doesn't closely follow the latest fashion trends, clothes are best purchased during end-of-season sales, even if it means you don't get much use out of them until the following year. (To learn more, read Patience Pays For Consumers.) 

Might there be a coupon for this item somewhere?

Combine sales with coupons, and you'll save even more. For the internet-savvy, eBay can be a great source of coupons, such as 10 buy-one-get-one-free coupons (abbreviated B1G1 in eBay lingo) of your favorite deodorant. The coupons might cost you $2.50 total including postage, but if you use all 10 of them, your net savings on a $3 stick of deodorant will be at least $27.50 plus tax. If you have time to look through a few pages of content, then sites that offer free printable coupons, like could be a good option for you too.

When shopping online, search for the store's name plus "coupon code" before making a purchase. Many sites will advertise coupon codes to help give consumers a break. Sometimes you'll enter coupon codes to no avail, but sometimes you'll get lucky and get some savings like $5 off shipping fees or 20% off your entire purchase. It's always worth taking a few minutes to look. 

Can I get a better price somewhere else?
It's usually a bad idea to buy an item at the first place you see it because it's very likely it is cheaper somewhere else. For expensive purchases where you have a lot to gain by comparing prices, and for situations, like online shopping, where it's extremely easy to compare prices, the savings you'll achieve are worth the extra time and effort. However, if you don't stand to save much or are likely to waste a lot of time, gas and money by shopping around, don't bother. If you're pressed for time, you can avoid shopping around altogether by making a habit of doing all of your shopping at stores that regularly offer bargain prices, and you'll be confident that you're already getting a good deal. (To learn more about this ancient art of buying and selling, see From Barter To Banknotes.)

Tip 4: SubstituteIf the item you want to buy doesn't quite fit into your budget, think about similar but less expensive alternatives.

Is there something that doesn't cost as much, but does the job I need it to? Figuring out the real reason behind a pending purchase can help you brainstorm ways to achieve the same result more affordably. For example, if you're worried about being bored during a long flight, you may want to buy a $125 spare battery for your laptop so you can get some work done. In this case, your main concern isn't really getting more work done, but rather finding a way to occupy your time. Instead of buying that extra battery, you could use your laptop on the most energy-efficient setting until the battery runs out, and then spend the rest of the flight reading a library book.

Do I really want this?
Wish lists can go a long way toward preventing impulse buying. By keeping a never-ending wish list, a person is less likely to buy items that have not been contemplated for at least a month, which provides sufficient time to decide whether the item is a necessity or just a want. 

If the mere prospect of saving money isn't enough incentive, consider the opportunity cost of buying an item. Maybe that new suit or purse isn't worth it when you could use the money toward going on a vacation.

Tip 5: Expand Your Shopping Universe
If you normally head straight to your favorite website, specialty store, or the mall when you need to buy something, consider these other shopping options that can save you a great deal of money:

Is someone personally selling what I need?
Garage sales, moving sales and estate sales tend to offer all types of merchandise at much lower than retail prices. You are most likely to benefit from this type of shopping experience for items that are not necessarily needed right away. For example, goods like canning jars, dishes or a jewelry organizer. This can also apply to more practical goods as well. However, don't expect to find absolutely everything at these sales, but do check them out from time to time to add value to your shopping budget. 

Does it make sense to buy this item in bulk?
Consider big box discounters as a source for the same products you normally buy at more expensive, specialized stores. You may not have ever thought of the drugstore as a specialty store, but when you start comparing their regular prices to those of discount stores like Target and Costco, you might change your mind. Even on inexpensive items like shampoo and toothpaste, drugstore prices can be significantly higher. As an added bonus, you can knock out several visits to smaller stores with one visit to a big box store, which also saves you time. But keep in mind that it doesn't always make sense to buy in bulk. Stores like Costco and Sam's Club charge annual membership fees that can easily offset your annual savings, and many people can't use up an extra-large container of pretzels before they get stale. (To learn more about bulk buying, see The Dark Side Of Bulk Buying.)

Checkout Time

The ideas presented in this article might seem excessively frugal to some, but when you cut costs in lots of little ways, you can achieve big savings without making big sacrifices. Even thinking about how to save money on relatively minor purchases, like cans of soda or packs of gum, can result in significant savings when you buy these items habitually. It doesn't take much time or energy to get into the habit of considering your purchases more carefully. You may not always make the choice that will save you the most money, and instead opt for convenience, but at least you will have made a conscious and well-informed decision toward that purchase. 

Top 10 Shopping Tips You Have To Know

10 Stop-Shopping Tips
Some people hate shopping, some love it–and the ones who love it seem to really love it. In a my-credit-card-is-through-the-roof and I-have-way-too-much-stuff kind of way. Too much stuff usually means clutter and clutter, for many, is the bane of the day.
Why not kick that clutter to the curb by taming your shopping with these 10 tips to kick the habit?
1. Go shopping only when you need something. Go with a list of what you need and stick to it.
2. To minimize impulse buying, leave your credit card at home. If you’re willing to pay cash for an item, it’s generally something that you really love or need.
3. If you see something you really want, walk away from it. Go to a different store, get a drink, or use the restroom. If you really want or need that item, it will be worth the walk back.
4. Before you buy any organizing product, ask yourself if you could just eliminate or minimize the things you were planning to organize.
5. Don’t buy something just because it is on sale. Buy it because you either need it or love it.
6. Buy clothes in coordinating shades. You’ll need fewer shoes and accessories to go with your outfits if you stick to the basics. You can plan your wardrobe around two or three basic colors for each season. Not only does it make daily dressing easier, but packing for a trip is simpler because you aren’t tempted to pack things that don’t mix or match.
7. Purchase only items to replace things that are worn out.
8. Think twice about buying souvenirs. Take photographs or keep a journal instead.
9. Don’t buy something if you already have something that can do the same job.
10. Remember that the very best things in life are free. Instead of spending money on stuff you won’t use or need a year from now, spend time with a friend or family member or with a good book.

3 Notices When Women go Shopping

I was interviewed recently for a piece in very big style and fashion blog.  My responses were so long that they had to be sharply curtailed, which I understood – readers often wanting to read a couple of lines, not a page of paragraphs.

Common Mistakes Women Make When Shopping

Shopping can be fun and enjoyable.  It can also be overwhelming and confusing even for seasoned shoppers, so the first thing to recognise is that it’s quite common to find shopping an intense and sometimes unsatisfying experience. 
I meet a lot of women who find their greatest frustration comes after the shopping trip – when they get their purchases home and discover that they don’t work as well as they hoped or thought they would when they were gazing lovingly at them in the stores.
Mistake #1: A common mistake many women make is to not know what they are shopping for before they hit the shops.  They have a “fire – aim” approach, rather than “ready – aim – fire” approach.  They don’t do what we call a ‘wardrobe review’ before they go shopping, to determine where their gaps are and what they really need. 
This kind of shopping can often result in a scattered and random approach to shopping, where every alluring table display and rack of new items captures your attention, and you roam from store to store with no overarching plan or strategy in your head. 
The result is that you have a much higher chance of bringing home ‘orphans’ that don’t work in your wardrobe as well as you would like, and that don’t coordinate with other items you have, or even items that don’t fit or don’t work with your lifestyle and personality.  These are the items that can sit and hang unworn, unused and unloved in your closet, often with the tags still attached. 
This is a huge waste and it’s no wonder so many women feel frustrated with their closets, and with shopping, when this happens over and over again.
mismatched clothes on rail
Mistake #2: Another shopping trap that I see many women falling into is to use shopping as their only or favourite default hobby activity.  It becomes their favourite “go to” activity and they have very few other hobbies or activities they enjoy doing, apart from shopping.  If you have girlfriends or family who have also turned shopping into a sport, this can be even more dangerous, as you have ‘partners in crime’ who keep you going back to the mall over and over again. 
Sure, shopping can be a social and fun activity – there’s nothing wrong with enjoying a shopping trip with girlfriends!  The problem arises when it is the only thing you do together, and you do it so frequently that it’s starting to do you financial, emotional or psychological harm.
Mistake #3: I meet many women who spend more than they earn on a weekly basis.  They are shopping at least weekly, often with friends, and they are adding to their already overfull wardrobes at least once if not multiple times a week.  Every week, it’s new shoes, earrings, jackets, suits, skirts, handbags – you name it, they are buying it. 
They simply can’t afford this level of expenditure and as a result their personal finances are in a very precarious situation.  What exacerbates this situation is their friends do not know how much they are in financial trouble and they feel unable to disclose how much credit card or store card debt they really are carrying. 
It can become a vicious cycle, and one that is shrouded in silence and embarrassment, sometimes shame.