Shopping Smart

Think for a minute about the last item that you purchased. Did you need it or just want it? Could you live without it? If you paid by credit card, will you pay off the balance in full or take six months (or more) to pay it off? If it will take you months to pay of the purchase, will you still want (or have) that item by the time you pay it off?

Shopping smart involves doing research and making wise decisions even before you go to the store. You are spending your hard-earned money, so be sure to consider carefully what is the best buy for that money.

If you plan a monthly shopping budget, you will find that you will become more selective about what you buy. This is because you won’t want to use up portions of your budget on frivolous items when you know there are other choices to be considered.

An important question to keep uppermost in your mind when contemplating any purchase: Do I really need this? This will help minimize impulsive buys.

While shopping, keep in mind two rules of thumb:

• Always know your merchandise. Buying poor quality at any price is never a bargain.
• Know what you plan to spend (budget, budget, budget) before you begin and always try to beat your best estimate.

Following are some money-saving suggestions for shopping smart for groceries, major appliances, clothing and items on the Internet.

An average family of four can spend as much as 14 percent of their take-home pay on groceries. To save money in this category:

• Have a plan before you go to the store.
• Use weekly sale ads and make a list.
• Don’t go grocery shopping when you are hungry, depressed, tired or in a hurry.
• Comparison-shop and try the store brands.
• Only use coupons if you are planning on buying the item anyway. Remember, the store brand is usually cheaper than the name brand with a coupon.

Americans, on average, spend five percent of their net income on clothing and its care. Know how much you are willing to pay for an item. How much you spend should be related to the amount of wear the item will receive. The more times you wear something, the cheaper it will be on a cost-per-use basis.

Be familiar with prices. Know how much something costs at a department store before going to the outlets. Take time to go through the clearance racks; there are good deals to be found. Stick to classic styles and colors as they stay in fashion longer than current fads.

Buying a major appliance, such as a new refrigerator, stove or hot water heater, is a hefty expense for a family’s budget. Comparison-shopping is a must. It is also a good idea to check the Energy Guide to compare how much you can expect to spend to operate each model under consideration. When purchasing appliances, ask for dented or scratched items. Stores may have them at a significant discount.

Have you always wanted to buy something over the Internet, but were a little apprehensive? Use your common sense when shopping on-line. Don’t do anything you wouldn’t do when dealing with a mail order company. Only use secure sites to protect your personal information and account numbers. Designate one credit card for e-commerce. If the account number is stolen, it will be easier to cancel one card than several, and it will be clear from your statements which purchases are not yours.
Since many people do some type of shopping several times a week, it is worthwhile to turn shopping splurges into smart shopping trips.