What is a Bargain Anymore?
Everywhere I turn items are on sale or there is a heaping pile of clearance merchandise. As a consumer in a down economy I know I need to shop smart, but navigating the so-called ‘deals’ can prove challenging. It is easy to wonder when everything is on sale, what is a ‘bargain’ anymore?
More often than not a ‘bargain’ is simply a gateway to impulse purchasing. To ward off this instinct I carry a note card with these purchase questions and check over it, before spending my hard earned money.
Did you need this item before you saw it? Was the item something you were specifically looking to buy or did the ‘great deal’ catch your eye. Curb your impulse buying by making a shopping list beforehand and commit to sticking to it. Those unexpected ‘good deals’ can slowly eat away at your budget and disrupt your set financial goals.
Does this item fulfill an active or a passive need? If you need a new item right now, it may make sense to buy it, but too often frivolous purchases are justified as saving money in the long term. Consumers often buy items because the price is good and someday the purchase could prove useful. That wasteful shopping can prevent individuals from attaining their long-term financial goals.
How did you find out about this item? Did you stumble into a clearance rack or see a sale in a magazine? Did a sales associate spend time explaining the value of a purchase? Strong marketing is present everywhere and the best way to overcome it is to think through how you arrived at the ‘bargain’. If you didn’t seek out the ‘bargain’ in the first place it is most likely not something you need.
Can you afford that… really? Is it a good time to make this purchase? Do you have other needs that this money should go towards? Investments vehicles can provide great value, but deciding when to invest should be a critical factor in financial decisions. Make sure that both the product and the timing is right for you. If you need the money right now, it might not be the right time to buy.
Does buying this item hurt my big financial goals? Those low cost purchases always seem like a ‘bargain’ but they add up quickly. You loose huge savings and investment potential by choosing to make little unnecessary purchases. Think about how your money is best spent, a low cost item isn’t a bargain at all if it is depriving you of a good savings plan, or keeping you from paying off those interest bearing credit cards.
It is empowering to deny the urge to buy. Choosing to answer these questions before spending supports both your financial and life goals making you an informed and astute money saver.
Amara Dumlao is a Reviewer, Writer, Designer and Marketing Consultant. A graduate of the Eller College of Business Management at the University of Arizona and a former Banker, Amara combines global business savvy with creative real world financial applications.
A regular community volunteer, DIY enthusiast, social networking guru, and avid traveler, Amara believes in applying the wisdom of the past with the technology of the future to create a fulfilling balanced life.
Comments
Sorry, comments are closed for this article.
