Carole Moore of Bankrate.com, in an article in MSN Money, says, despite good intentions, many people spend more than they should.
Moore says these “costly shopping mistakes” cause consumers to exceed their budget or buy things they do not need, or even want. She offers suggestions on how to avoid some “of the most common shopping traps.”
You have probably heard the expression “retail therapy.” Some people shop to banish the blues or to relieve boredom. Moore quotes financial expert and newsletter editor Galia Gichon who says, often, consumers who turn shopping into a hobby or a sport “haven’t done the math to determine whether they can even afford their purchases.”
Gichon recommends “creating a budget that puts aside a weekly amount for such expenses.” The shopping “hobbyist,” she says, can spend the allowance on anything he/she likes but once the money is spent there should be no more spending for the week.
Moore adds that people who consider shopping a hobby or sport should stay out of the mall during office breaks and leave their credit cards at home.
The need to own—or be among the first to have—the latest technology can also result in overspending. Moore calls this obsession “one of the deadliest of spending traps.”
She quotes financial author and speaker Peter Bielagus who says, “The longer you wait for new technology, the better.” He says waiting has several advantages: “Not only does the cost fall, but the developers work out the kinks over time, and you get a better product.”
Moore also warns against “mistaking shortcuts for savings.” Buying salad ingredients that have already been cut may save time but it will cost more. “Food that has been ‘pre’ anything—chopped, cooked or marinated—is one of the most expensive ways to purchase (groceries),” says Ellie Kay, the author of “The 60-Minute Money Workout.”
Bulk buying, Moore says, is advisable “when the items are ones you know you will use before they expire. Bulk toilet paper for a household with multiple bathrooms and lots of family members might be a good investment, while a purchase of four dozen eggs may result in waste if you end up throwing some away,” she points out.
People should also know when to buy branded products and when to get something generic. Moore quotes Kay—“There are some exceptions, but brand-name buying is not always the best indicator of quality.”
Consumers should also try to avoid catching the clearance sale fever. People have often found themselves buying items they do not need nor expect to ever use.
Search for 10 women
Nominations are being accepted for the 10 Women of Confidence search. Deadline is Sept. 26. Online voting will be on Oct. 1-15.
The search was launched by Tupperware Brands Philippines to recognize Filipino “women who showed exemplary impact and helped bring about positive change.”
Nomination forms can be downloaded from Tupperware’s fan page. Like the page and click on the I Am Confidence tab (www.facebook.com/tupperwarebrandsph/iamconfidence).
Send letters to The Consumer, Lifestyle Section, Philippine Daily Inquirer, 1098 Chino Roces Ave. cor. Mascardo and Yague Sts., 1204 Makati City; fax 8974793/94; or e-mail [email protected].
