Financial Tips

How to Save Money : Shop Like a Pro

For Everyday Ways to Save, Shop Like a Pro

If you're trying to stick to a budget, it pays to shop like a pro. Professionals always prepare carefully before taking action. Smart shoppers do likewise.

Before heading out on your next shopping trip, Credit Counselors suggests you ask yourself: Who, What, When, Where & Why?

• Who is the shopping trip for? Hopefully you are shopping for a specific person (a family member or friend) or to meet a need (weekly food shopping, an upcoming special occasion). You risk blowing your budget if your motivation is to window-shop.
• What items must I buy today? Few people have unlimited budgets, so carefully consider what purchases need to be made right now. Make a list to avoid buying on impulse. Cross off items that are “wants” rather than “needs.” Your budget will thank you.
• When is the item going to be paid for? If you pay with cash, the item is paid for today. If you use a credit card, it's easy to lose track of how much you spend. Moreover, if you have an outstanding balance, you'll pay the purchase price plus credit card interest. It's best to leave the charge cards at home if finances are tight.
• Where am I going to find the best deals? Look at your list and consider which retail outlets have the most reasonable prices or are holding special sales. You may want to do an online price-check using a comparison-shopping Web site or an Internet search tool to find the best deals.
• Why do I feel the need to shop now? If you're going shopping to lift your mood, it would be best to postpone the trip. Otherwise, you'll be tempted to buy items you can't afford and you'll only feel down when the bill comes due.

Once you're determined you're in the right mindset; you know what items you need; you've picked merchants with the best prices; and you have cash on hand; you're ready to start your shopping expedition.

Here are additional tips from Credit Counselors to help you shop like a pro and stay within your budget.

• Go Solo: It is easy to get distracted if you're shopping with young children or chatting with a friend. You might get talked into unnecessary purchases or lose track of your spending. It's easier to stay focused if it's just you and your list.
• Sales: Carefully read the sales ad to determine if the price is really a bargain. Remember, even if you're saving 30% on an item, you're still spending money! If you're not going to use the item, don't buy it, no matter how tempting the sale. Sometimes retailers use huge sales to unload obsolete or shop-worn products, so carefully inspect the item first.
• Coupons: Check local newspapers, advertising circulars and manufacturer/retailer Web sites for coupons and special discounts. On your shopping list, note the items for which you have coupons. Some coupons must be used in combination with the retailer's charge card. Keep in mind these credit cards often carry high interest rates. If you don't pay off the balance immediately, any money saved on the sale could be offset by interest charges.
• Rebates Rebates can provide great savings if you follow the instructions and mail it off by the deadline. Don't toss anything away (receipts, packaging, rebate slip) until you know what is needed to apply for the rebate. Keep a copy of everything; that way, you know whom to contact if the rebate is delayed.
• Buy in Bulk: Warehouse stores are generally cheaper due to volume discounts. Just be sure to stick to your list as you cruise the aisles. Before buying in bulk, consider whether you'll use the item before it spoils or expires.
• Consider Generic: If possible, buy generic or store brands. They cost less than brand names and are typically of good quality.
• Service Contracts and Warranties: Keep all warranties, with sales receipts, in a safe place for future referral. It is your option whether or not to purchase a service contract. Retailers make money selling service contracts because most of the products never need repair or servicing. Consider the cost of the contract and weigh that against the odds that your product will need repair.
• Online shopping: If you prefer to shop online, purchase from merchants that are trustworthy (check with the Better Business Bureau at www.bbb.org) and that provide a physical address and telephone number for customer support. Before making a purchase, check the privacy protection policy; tally up the full price, including shipping and handling; and use a secure payment mechanism (like a credit card). Always print a copy of your order for future reference.
• Returns/exchanges: There is no federal law requiring stores to accept returns. Ask about the merchant's return policy before you make a purchase. If returns are allowed, know the deadline, required documentation, and if there are re-stocking or return fees. Keep all receipts and original packing materials in case a return is necessary.
• Alternative shops: Consignment shops, thrift stores, garage sales and the classified ads offer alternative low-cost shopping venues. Understand, however, that you are buying items “as is” and have little recourse if you end up dissatisfied with your purchase.

For more helpful tips on preparing a budget and sticking to it on a consistent basis, contact the professionals at Credit Counselors. If you find yourself falling behind and in need of debt management assistance, our experts can work with you to reduce your debt to creditors and get back on the right financial track.

Did You Know?

Planning a menu and using a shopping list at the grocery store will save you time and money. Go into the store with a plan on what you are going to buy and stick to that plan. You will save on impulse items and avoid buying costly last minute take-out food.