Well duh! That sounds simple, right? Well to most people is seems logical that to save more money you need to spend less money but how many people can honestly say they don’t get suckered even a little bit when they go to the store. With the promotional deals, the two-for-one specials, and the other ploys marketing geniuses play on us consumers, it is nearly impossible to get out of the store without a few extras.

But nearly impossible does not necessarily mean totally impossibly. It is up to you to change your spending habits. In order to do that, consumers must change their minds and their actions when they get into the store if they hope to save any money.

Think Hard About the Big Stuff
When we spend a large sum of money on a big-ticket purchase or for an event we have to pay a lot of money for, such as a vacation, it would seem logical that we would do all we could to get the most out of our money much like when we go to the grocery store. But statistics show that most consumers do not carefully plan out their road trips as carefully as we should. Many consumers will spend a considerable part of their total annual income on their vacation so it makes sense that you should dedicate at least a portion of your pre-planning time looking for bargains all the way around, from the cheapest gas prices along the way to the best price for airline tickets. Any big ticket item should not be taken at face value just out of excitement and there will be a bargain somewhere, provided you hunt for it. The big purchases that only happen from time to time count just as much as the more common shopping expenses.

Sharpen Your Comparison Shopping Skills
It takes a lot of focus to find the best prices for the merchandise you are looking to buy. You need to look at different levels of the product, find what features you need and calculate the average range of price. Then you need to get focused solely on those features and that price range and forget the alternatives. If you do not apply this focus, you will likely be swayed and opt to buy the more expensive option.

Forget Where the Money Comes From
When you are dealing with the money you earn from hard work, you are more likely to be careful with every dollar spent. When you come into money outside the realm of your payroll check, such as lottery winnings, gifts, or tax refunds, consumers have the tendency to spend more freely. The next time you incur a windfall of cash, no matter how big or small, deposit it into your bank account and let it sit for a time and work to “forget” where it came from. Readjusting your accounting mind, you may be better able to control your impulse spending that is typical with “free” money. It also helps to get into the habit of spending money before you even have it. How many people have you heard discuss taking their next vacation with their tax returns or fixing up the house with grandma’s inheritance? Instead of spending in your mind, commit to depositing the money into your account and plan out your next big purchase as if you never got the lump sum of cash but rather needed to continue on a savings plan for your next vacation or new living room furniture.

Tags: money management, saving money, spending money

This entry was posted on Wednesday, January 28th, 2009 at 6:49 am and is filed under tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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