Coupons, Sales and Other Budget Busters
The easiest way to save money is by not spending it. But, that’s boring and impractical. We all need to spend money to survive and spending money wisely can also be good for our self-esteem.
There are a few tricks though, that I see a lot of people fall for when it comes to spending wisely. Ironically, coupons and sales are two of them.
Consider this scenario:
You receive a postcard in the mail from a retail store. They invite you to shop at their store to receive $30 off every $75 spent.
At first glance, this seems like a great deal. You’re essentially buying $75 worth of clothes for only $45. But, once you factor in sales tax and what it cost you to physically get to the store (whether it’s a bus ticket, parking or gas), the final price will climb back up towards $65. Sure, in the end you’re still not paying full price, but you are spending an awful lot of money on something you may not have even thought about buying if you’d never seen the postcard in the first place!
As I stated in a previous blog post, thrifty consumers are not heavily influenced by marketing and advertising. We are thoughtful and deliberate with our money which means we think through our purchases. The postcard in the scenario above offered a legitimate deal, but only if I was planning on buying a specific item at that particular store already.
Sales are another way retailers get you to spend money on things you don’t need. They know that the word sale is powerful. It implies that you’ll walk away with a bargain, but this isn’t always true.
Take for example, department stores. They are constantly running sales: white sales, home sales, holiday sales, and seasonal sales. Do you ever wonder if their sales prices are actually the same as their regular prices, considering that everything is always on sale? When was the last time you walked into a department store and didn’t see a sale sign?
Again, I’m not suggesting you not shop sales or use coupons. Just be aware that they are designed to get you to spend more money than you had originally planned.
I see plenty of coupons offering discounts only when you buy more than one item at a time: “Save $1.00 on 5 or more cans of green beans.” Or, coupons that offer one item at half price when you purchase one at regular price. To me, these coupons are not bargains. I realize they may be for large families or people with lots of storage space or people who really love green beans.
Other budget busters that may not be obvious are catalogs and magazines. If you are trying to spend less money on non-essential items, throw away every catalog that arrives in your mailbox and unsubscribe from your magazines today. These publications are full of temptation. If you insist you’re actually reading the articles in your magazines and are not flipping through them to look at the pretty pictures (guilty!), I bet you can find the same articles online.
By eliminating temptation and ignoring sales and coupons when you’re not in the market to buy anything in particular, it will be easier to avoid unnecessary spending and stick to your budget.
Terrell Meek has worked for more than six years as a marketer for Verity Credit Union, advocating the benefits of financial responsibility.
A born saver, Terrell credits her parents with teaching her sound financial habits at an early age. She believes one of the keys to a satisfying life is learning to live simply.
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