Are You a Bargain Junkie?
Posted by Gail | Filed under Uncategorized
Who doesn’t love a good sale? But when bargain-hunting, coupon clipping, or mastering the deal becomes the objective, you and your budget are likely headed for big trouble. I can’t tell you the number of people who have said, “But it was such a deal!” Really? A deal? Hmm.
If you’re spending money you don’t have – if you’re putting it on credit – it’s not a deal. If you’re buying something you don’t need, it’s not a deal. If it takes you three weeks, three months, or never to put what you bought to use, it’s not a deal.
A deal is buying the snowsuit your child is going to wear next winter on sale this winter at 70% off. A deal is picking up a new book you’re dying to read for half price. A deal is getting something you really need or want at a significant savings, and being able to pay for it in cash.
There are some places that are known for having “deals”, and people take the value they’re getting for granted without actually checking the prices. Dumb! And there are people who will go to extremes to get a deal, lining up for hours to browse – and ultimately buy – in stores where they wouldn’t normally shop. Whazzup with that?
People who can’t pass up a good sale even if it’s on something they don’t want, need or even particularly like aren’t smart bargain buyers, they’re compulsive shoppers. Scoring deals helps them to ease their insecurities and feel more competent and in control. And they rationalize their purchases as something good they are doing for themselves or their families.
A study by Norwich Union Insurance in Britain in late 2007 showed that 17% of Brits spent more than planned because they couldn’t resist a bargain, and almost a quarter of them could justify buying more because of a low price tag. In fact, nearly a third got such a buzz from bargain shopping that they were always on the look out for the next hit.
So are you a bargain junkie? Do you:
- hit sales and clearance racks when you’re feeling sad or mad?
- spend more than you can afford?
- see sales as opportunities you just can’t pass up?
- feel guilty about your shopping?
- walk out of stores with things you hadn’t expected to buy?
- hide your purchases?
- routinely forget what you bought and find things in your closets with the tags still on?
The next time you find yourself sidling up to the cash register with a bargain in hand, ask yourself:
- Do I need it?
- How will I pay for it?
- What will I do with it?
- What would happen if I waited?
Better yet, do what my friend Natasha does. She keeps a list of the things she needs and wants. If she finds a bargain, she looks at her list to see where it is (she’s keeps her list in priority sequence) and if it’s at or near the top, and she has the cash on hand, she buys. If not, she walks away.
I’ve watched her do this, and it’s impressive. Natasha is accomplishing a whole bunch of things with that list: she’s keeping herself on track, looking only at things she knows she needs or wants, she’s prioritizing, and she’s only spending money she has available.
In a culture that worships shopping, it’s only natural that the “bargain” be the Holy Grail. But if you find yourself being suckered into to buying stuff just because “it’s a great deal”, you’re definitely not as smart as you think you are. If you’ve saved so much money with all your bargain shopping, show it to me.
If you can’t show it to me sitting in your retirement plan, in an educational savings plan for your kids, or in your emergency fund, you’re deluding yourself. You need to find something constructive to do with your time. Bargain-hunting isn’t doing it for you.
December 30, 2009 at 9:27 am
I’ve known a few people that love to use that phrase “It was such a deal!” I’m glad I’m not one of them. Our spending a pretty much under control. and we aren’t Deal shopping ussually. However my wife did just get the second season of house on sale for $19.95. I thought that was a deal and a nice surprise.
regards,
Jason
December 30, 2009 at 9:34 am
“it only costs”, is another phrase that can cost alot…all those little “it’s only” add up and at the end of the day are probably not a bargain…i.e. caller i.d is only 3.95 plus tax a month…that 3rd cell phone is only 25.00 per month…voice mail is only 5.00 plus tax a month…a coffee a day is only 1.25 a day…lunch out during the work week is only 5.00 per day…add it up…that’s 258.95 a month!!…hmmm…so many better places for almost 260.00 a month that truly would be a deal!…
December 30, 2009 at 9:53 am
I am forever going shopping and picking stuff up…I walk around with it for a little while and then ask “do I really NEED this?”. Nine times out of ten, the answer is a resounding no, and I leave it and walk out. Back when I was younger and in college, I used to shop when I was depressed and ran up a huge credit card bill. I now stay out of the stores when I am feeling down, lol.
I like your friends system, Gail…I think that we’ll maybe start to implement it.
December 30, 2009 at 10:08 am
I’m sure the sales people think I’m nuts but when I’m shopping and I see a deal I stand there and stare at it. In my head I’m running through all the questions- do we need it now or later, can we afford it, where will I put it, do I already have something like this at home. Most of the time the initial buzz wears off as I stand there and I go home to reuse something we already have.
Like Sparky says “it’s only…” does add up. I hear that all the time from family and in my head I’m adding it up for them and shuddering.
December 30, 2009 at 10:19 am
It’s easy to get caught up in a good deal though-my Dad always laughs after Mom and I shop and come home to tell him how much we “saved”. My mom trained me to be a bargain hunter, but only for stuff I need. Therefore, I don’t go looking for bargains unless I’m already in the market for something. For instance, when I decide I need new work shoes, I start looking, comparing prices and watching any pertinent flyers (that I throw out the rest of the time to avoid temptation). It might take me a few months to buy the work shoes that I want, because I know they’ll go on sale at some point. The last time I did this, with the money I set aside for shoes, I got such a good deal that I was also able to buy the suit I also needed, so I put the money I set aside for the suit into the emergency fund
December 30, 2009 at 11:02 am
I’m pretty deal resistant, to a point. But I never say I saved $30 dollars or whatever, I say I spent $20, as I didn’t really save any money… I spent it.
@ Sparky – a coffee at only $1.25? I have colleagues who spend $5.00 every day at starbucks.
December 30, 2009 at 11:17 am
One of my tricks is not to take a carriage when I go to one of those great deal stores. That way I only buy what I can carry in my arms. And if I get tired of carrying all my stuff, I start to realize that I don’t really need them and put the heavy ones back.
Gail, I saw you on the Costco magazine. Great Article. Is this really the last season of Til Debt???
December 30, 2009 at 11:46 am
What a difference a year makes. I walked into a store yesterday where I had received a $50 gift card for xmas….and walked out buying nothing despite the bargains to be had. Because there was nothing I needed there.
Last year I would have bought stuff worth $50 and more….because there were such bargains.
So now I can’t even spend free money…Gail what have you done to me?
December 30, 2009 at 12:11 pm
I went shopping with my cousin back in October and she was like that. The buy two get the third free sorta thing. She really only liked one, but would buy two more just to get the “deal.” She spent a lot of money on that shopping trip!
December 30, 2009 at 12:32 pm
Yesterday, I printed off a picture of Gail from Slice.ca (the one with her pointing at the Piggy Bank) and put it on my desk along with a pic of Suze Orman. These two fab women are reminders for me to stay out of the stores downstairs in the mall where my office is, and to put myself first and save my money. I don’t need anything (well, I really could use some slippers) but nothing else that I can think of. As for the slippers, I’m going to return an item DH bought for me and get slippers instead.
Since the sales started the only items I bought on sale were gift tags, bows and tissue paper at 75% off. I’m all set for next year’s wrapping!
We received a few gift cards over Christmas. I will keep them for when we think of what would be helpful rather than going shopping just to spend the cash on the gift card. One we will keep until the spring towards a new BBQ as ours died after 6 years.
This New Year I am being more conscience of my spending – no emotional spending, no spending out of boredom either. I need for nothing.
If I really want something, I will have to plan for it.
Happy New Year everyone!
December 30, 2009 at 2:13 pm
Years ago I saw a cartoon of two people standing outside a store with a “50% Off” sign in the window. The first person says “Why don’t we go in and save 50%?” to which the second person replies “Why don’t we stay out here and save 100%?”.
To this day I think of that cartoon when I feel the pull to enter a store with big SALE signs in the windows. Funny how some things stay with you.
December 30, 2009 at 3:08 pm
Last Christmas gift purchased December 22. Picked up perishables at the grocery store December 24th. Next stop at a store…today, December 30th. Did a lot of looking, but only thing I bought was two packages of gift tags for next Christmas for $1.44. Hubby exchanged a gift – one shirt for another at Mark’s W.W., he also bought a replacement Flo and Go at Cdn. Tire for his lawnmower and snowblower – his broke last week. We also bought fruit and veggies. End of shopping.
I’m still a work in progress, but, much better than I was!
I discussed gift giving with my nieces and nephews and as there are now 4 great nieces and nephews and one grandson under the age of 4, Christmas presents next year will just be ‘for the kids’. We bought our daughter and daughter-in-law CAA this year and if they like having it, we’ll do it again next year. There were other gifts as well.
I’m going to keep my eye out for a lovely wool on sale for knitting an afghan for my work gift next year. As I’m almost done one baby afghan for February and have another to have done for August, I’ll get it on the go ASAP. I don’t like to knit in the summer months.
I always start my Christmas shopping in the New Year – a little here and there and keep it all together in a box. So much better than a big cash payout all at once.
Happy New Year to you all! Safe travels……
December 30, 2009 at 3:12 pm
Gail – will you be giving out hugs as well as autographs at Costco next Saturday?
December 30, 2009 at 3:15 pm
I very usually use a hand basket instead of a cart when shopping. It makes you think before you add anything to the basket due to the weight. I will also carry items around and put them back before I leave the store. I also find even though I take a list there are usually one or two extra items that I purchase no matter. So I usually limit the number of times I go to those types of stores. I also keep a running total on my list when I do any kind of shopping, I am rarely suprised when I get to the check out counter. I am in the process of doing a shopping list with estimated costs and priorities for the coming year. I know a few people that discuss how much they saved not spent.
December 30, 2009 at 3:18 pm
I wouldn’t call myself a bargain junkie. But I do LOVE a good deal ….
If I see something that is an extremely good deal I will not buy it unless we already needed it or have the cash for it.
I recently bought all new towels, hand towels, face cloths for 80% off for both of our bathrooms during Sears Days last month. My purchase came to only $160!! When it normally would of come to $610. We desperately needed the towels as our previous ones felt like sandpaper. It wasn’t a planned purchase but I knew that the cash was available.
I just purchased new dinnerware as ours it very badly chipped (there was chunks missing). I found good quality dinnerware recently on sale for 60% that I really liked. It would of normally cost $180 for two sets but after the sale and gift card we only paid $27!
When I get good deals like this I must admit I do get quite the buzz. But before I purchase anything on sale or not I always ask myself … do we really need this? can we afford this? This habit isn’t always something that I’ve had. Before a good deal was justification enough to buy it.
December 30, 2009 at 3:28 pm
@Geoff…I know 1.25 was very very modest but I was just trying to make the point of “it’s only” when it comes to small amounts…when folks compare their 1.25 a day to other folks’ 5.00 per day then they believe they’ve really gotten a bargain…but as you can see if you do the math even when it’s only 1.25 it still really adds up…make your own coffee or if your employer springs for the coffee like mine does (and it’s the really really good stuff) drink the free stuff…can’t get a better bargain then free…LOL…
December 30, 2009 at 3:33 pm
Oh, one other thing…I truly did get a bargain the other day…my Christmas party for work is in January this year and as I have just lost 40 pounds I truly didn’t have anything to wear…my husband and I only go out once or twice per year and I have no problem wearing the same thing many times but with the big weight loss I really didn’t have a thing so off I went to buy a dress…my budget was very small 50.00 max…I found a dress I really really liked for 29.97 and was thrilled…it fit perfect and the price was under my budget…when I went to pay for it I got an even better surprise…it was on sale for 8.97!!!!!!!!…Happy New Year to me!!!
December 30, 2009 at 4:50 pm
I too usually stand there giving myself a stern talking to. It happened yesterday at Costco. 500g of minced garlic for $3.69. Normally I would pay that for 100g at Safeway. I picked up the container, I put it down, I picked it up, I walked around with it all the while mumbling to myself that I didn’t need it and then mumbling that it was a great deal…sigh! But seriously, how on earth would I get through that much garlic? I finally told myself that if I ate that much garlic no one would kiss me at New Year’s. That finally convinced me to walk away….
December 30, 2009 at 4:57 pm
$8.97 for a dress??? WOW, now thats what I call a sale! Great shopping Sparky and Megan!
I had the same weight loss dilema before the parties began, with no good clothes to wear out. I was generous with a $75 budget for at least 2 really good tops and accessories and possibly a sweater. Like you Sparky I found sales galore. I bought a blouse, a fancy show off my new figure top, a camie and a sweater to go over it, plus I bought a new shower wand (that was a necessity since the old one didn’t spray much anymore). I came over budget but only by $6.54 which included the shower head I hadn’t planned on replacing.
I get thrilled and even want to dance when I find really good sales on items I am out to buy, like the clothes. I felt like a million dollars on Christmas wearing my fancy less than $10 top. What feels even better is the massage I get every night from my new, all that I wanted, 7 setting, shower wand which I didn’t even have to budget for!
I only get sale items if they are things I am out to buy, unless its things I know I will need such as Christmas bows and paper and toilet paper. That is the only thing I stock up on when there is a good sale. My mother usually calls me and we make a TP run. Since I don’t have car I take advantage of her goodness and fill half the car (she fills the other half). Then I am good for many months. I take the money from my personal expense budget, but with the deals my mother finds it barely makes a dent.
My mother is great for getting sales and deals on things she needs because she learned from the best – her mother. As I mentioned yesterday my grandmother was poor but they had everything they needed. Every single item in her place was bought on sale. To buy something that wasn’t on sale was unthinkable and just wrong. I guess having come out of the depression and then still being poor left her with a good financial outlook. If you didn’t have the money for something, you didn’t get it. If you wanted something you saved for it and then waited for it to come on sale – that included my grandfather’s car. My cousin still has the old car and its receipt which says it was paid in cash and on sale. When she dies she owed nothing, had money saved for her burial, and my grandfather 2 years worth of toilet paper – I guess it must be hereditary. Its a shame her financial sense wasn’t, since many of her grandchildren are dirt broke and some have lost it all.
If I’m rambling I’m sorry. I just loke to write about great sales and my grandmother.
Happy financial new year everyone!
December 30, 2009 at 5:03 pm
You see what is just as exciting as sale is writing about a sale – I was so excited my fingers went astray. The last lines should read:
When she died she owed nothing, had money saved for her burial, and my grandfather had 2 years worth of toilet paper – I guess it must be hereditary.
I just love to write about great sales and my grandmother.
Sorry about that folks!
December 30, 2009 at 8:21 pm
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December 31, 2009 at 6:27 am
Instead being sucked into a purchase by the lure of a great deal I love the hunt for a great deal on something I am looking to buy. The search for the best deal is sort of like a treasure hunt. The trick is figuring out when you’ve actually found the best deal and invested as much time in the search as is sensible.
It is also nice to unexpectedly find a great deal on something you are planning to buy in the near future. A really good price can move a planned future purchase up the priority list.
December 31, 2009 at 1:48 pm
A girlfriend of mine likes to use the expression “You can’t go wrong”. Everytime she says it, it’s like nails on a chalkboard. She can go wrong & does go wrong when she goes to pay using one of her credit cards in her arsenal. One would think that a person who lost her job over 6 months ago would curb their bargain hunting to window shopping. But nope. She doesn’t understand how things add up. Its painful to watch. Bargain hunting for her is a sport.
And no, she doesn’t pay off her card balances in full each month, just the minimum payment due.
December 31, 2009 at 10:45 pm
Deals… we all like getting deals. Actually “FREE” is the best deal for me. Like just yesterday, we had our car in for a recall (FREE) and while we waited in the waiting area, we helped ourselves to the courtesy coffee and hot chocolate. All of us, a family of 5, got FREE coffee and hot chocolate. Gotta love it! It felt like we went out for a family coffee date and we didn’t pay a single penny….
In reality, I’m not bargain junkie, and while I have been actually surprised at how much I used to buy on impulse, I have found a very effective way of NOT buying things I wasn’t prepared to buy – I simply don’t carry any cash or cards with me, other than the amount I am planning to spend on each outing. I would have fallen prey to an impulse buy just yesterday when I took myself and $15 to Shopper’s Drugmart for a $14 planned purchase. I saw a Christmas something-or-other ON SALE for 50% off and it was something I thought was cute, but I had no means of buying it, so… I walked away. Today, I’m glad I didn’t buy it. I really didn’t NEED it and I’m not even sure I WANTED it.
January 1, 2010 at 12:05 am
Here’s what boggles my brain: a generation or two ago, people did not go shopping. I mean, not like we do today. Generally, they made or grew things themselves or did without. Ok, I’m exaggerating, but only a little. And it was maybe only 2 or 3 generations ago that that was true. But I know that my mom and dad never went shopping for entertainment when I was growing up. If something broke or wore out or we grew out of it…my mom went with cash in hand. Eliminates the dangers of being sucked in by attractive displays, 2for1 deal signs, and the like. I certainly didn’t get into debt by following my parents’ example! But following their example is helping me get out of it. Don’t go for bargains unless you need said item in said quantity. Don’t go shopping for entertainment. Don’t buy stuff. Make a meal special by setting out the good china and lighting candles, not by paying for an overpriced meal at a restaurant. Go skating or to the park instead of to the movies. Make cookies instead of buying them. Save for things like the new vehicle I will need in the next few years.
I’ve been clearing out my storage area lately…a lot of silly purchases are landing in the garbage bin. Who cares if I spent money on it, now it’s just taking up valuable space. Decluttering is the second best way to resist impulse buys (not going shopping is the first): who wants to fill up a roomy, airy space with junk after it’s been cleared out and cleaned up?
January 3, 2010 at 2:51 pm
“At that price it’s practically FREE!” is my sister’s favourite excuse for getting things she wouldn’t normally get. But in her defence she usually finds a use for the item eventually.