Shopping Sales

Posted by Mike Smith :: July 24, 2007 @ 8:03 am

When looking for ways to reduce expenses, shopping sales is a reasonable way to go. Of course the dilemma often becomes: Given a 50% off sale, do you spend half as much, or buy twice as much? Depending on the type of shopper you are, either one could make sense for you.

If shopping is a hobby (a means of entertainment), or your way to reduce stress, then the sale of a lifetime probably won’t defer your next visit to a later date. If you’re the type of person who likes to go shopping on a regular basis just to see what new products are on the shelves, then you should try to set a needs limit rather than a dollar limit.

When it comes to shopping, the line between needs and wants tends to be blurred. Creating a shopping list before leaving home will likely keep you focused. By sticking to your list, you can purchase everything that you need at a fraction of the regular cost.

If you dread shopping, as I do, then buying as much as possible in one outing will push the next trip further out into the future. You will likely do best with a dollar limit rather than a needs limit. Shopping sales will allow you to get as much for your allocated funds as possible.

You may also be able to save even more by taking advantage of end-of-season sales. While you may not be able to wear the ski parka you buy in March for many months, the savings may justify the deferred use.

As you strive to get ahead financially, philosophical reflection is usually a large part of the process. You must go deeper than the actual dollars and cents and examine your inner psyche to determine the source of your drive to consume. As we’ve said on the Lending Club blog in the past, these exercises are not meant to classify specific habits as good or bad, but rather to help you to accurately clarify your situation.