Week 1: January 1st - January 6th, 2007
New Habit: Post-Christmas Clearance Hunting
Frugal Habit? Yes, with restrictions.
Large corporations employ armies of consultants and marketing specialists to help
them sell their products to consumers. Most frugal people have enough experience to
see through these scams and keep a few of those hard-earned dollars in the wallet.
The one ploy that seems to ensnare even the wisest spender is the
saving-by-spending scheme. This one comes in many forms: coupons, endcaps full
of what sounds like a good deal, outlet stores, and, of course, sales.
I once worked at an upscale department store that shall remain unnamed. We had
sales EVERY WEEKEND and sometimes in between. Yet, merchandise seemed to
stay about the same price. It was rare that we saw an actual deal come across our
checkout counter. This has left me more than a little suspicious of sales, especially
traditional sale days when every store in the mall beckons with promises of great
prices.
This year, I decided to give corporate America a chance. It was not a pleasant feeling,
nibbling at the hook dropped by a crafty salesman, but I discovered a few ways to get
that shopping adrenaline rush without being a greedy corporation's seafood dinner.
It's not a good deal if you don't need it. Seriously, folks. I almost bought my daughter
a pair of name-brand boots that were marked down seventy-five percent. That might
have saved me some cash, if she didn't already have a nice pair of boots, and if this
particularly pair wasn't crazy expensive even with the discount.
Don't consider the original price so much as the value. If you would never dream of
dropping eighty bucks on a pair of jeans, then it is irrelevant to you that those jeans
cost that five months ago. Consider instead how much you normally pay for jeans
and how this price tag compares. I also add quality and resale value to the equation if
there is a substantial difference. Example: Hanna Andersson clothing looks great
through several hand-me-down cycles and fetches a premium at auctions and resale
stores. Therefore, a Hanna Andersson dress for fifteen dollars is a better deal than a
generic dress for five, at least in my family.
Consider storage space. If you have nowhere to keep it, buying big at seasonal
sales is not the right strategy for you. There are ways to save money without turning
your home into a good-deal-landfill.
Avoid anything conveniently placed. If they are flashing it where you can't miss it, it is
probably making them a lot of profit. Stores know that cash registers and the edges of
main aisles are prime real estate, so that's where they put their money-makers. Let
them make money off someone else!
"Thin" your pile before paying. Those great deals lose a lot of their sparkle before
you even pay for them. Pause before you get in line and examine each item. If you
have the smallest reservation, don't buy it.
Bring a buddy. Not your spendthrift sister who has eighty different store cards in her
Prada wallet, but that one friend who is both brutally honest and has a good eye for a
bargain herself.
Leave the kids at home, if possible. I couldn't, and boy did I wish I had. Toddlers get
bored quickly, and the hours spent poring through clearance racks were bought with
a fast food lunch that ate up much of my hard-won savings.
Pay cash. It's the only way to guarantee that you won't spend this week's grocery
money on next year's wrapping paper. It also guarantees that you won't be hit with a
huge credit card bill after your merchandise has lost its sparkle.
In the end, I came out ahead, with a bag of Mulberribush shorts bought for under four
dollars a pair and a lifetime supply of Christmas cards purchased for a fraction of
what I would pay next November. But these awesome deals would have been
overshadowed if I had bought even a few of the non-deals that filled most of the
stores.
This entire page can be summed up in one Latin phrase: caveat emptor. Buyers
should always beware when companies spend millions of dollars to draw us into
their lairs. Keep your wits about you and evaluate every "deal" carefully. Don't get
caught up in the sale fever, or you may find yourself in debt despite your supposed
savings.
Amount Spent: $44
Amount Saved: $71
Difficulty: 2 (not too bad at all)
Time: 4 Hours
Next week's habit: The Envelope System
New Habit: Post-Christmas Clearance Hunting
Frugal Habit? Yes, with restrictions.
Large corporations employ armies of consultants and marketing specialists to help
them sell their products to consumers. Most frugal people have enough experience to
see through these scams and keep a few of those hard-earned dollars in the wallet.
The one ploy that seems to ensnare even the wisest spender is the
saving-by-spending scheme. This one comes in many forms: coupons, endcaps full
of what sounds like a good deal, outlet stores, and, of course, sales.
I once worked at an upscale department store that shall remain unnamed. We had
sales EVERY WEEKEND and sometimes in between. Yet, merchandise seemed to
stay about the same price. It was rare that we saw an actual deal come across our
checkout counter. This has left me more than a little suspicious of sales, especially
traditional sale days when every store in the mall beckons with promises of great
prices.
This year, I decided to give corporate America a chance. It was not a pleasant feeling,
nibbling at the hook dropped by a crafty salesman, but I discovered a few ways to get
that shopping adrenaline rush without being a greedy corporation's seafood dinner.
It's not a good deal if you don't need it. Seriously, folks. I almost bought my daughter
a pair of name-brand boots that were marked down seventy-five percent. That might
have saved me some cash, if she didn't already have a nice pair of boots, and if this
particularly pair wasn't crazy expensive even with the discount.
Don't consider the original price so much as the value. If you would never dream of
dropping eighty bucks on a pair of jeans, then it is irrelevant to you that those jeans
cost that five months ago. Consider instead how much you normally pay for jeans
and how this price tag compares. I also add quality and resale value to the equation if
there is a substantial difference. Example: Hanna Andersson clothing looks great
through several hand-me-down cycles and fetches a premium at auctions and resale
stores. Therefore, a Hanna Andersson dress for fifteen dollars is a better deal than a
generic dress for five, at least in my family.
Consider storage space. If you have nowhere to keep it, buying big at seasonal
sales is not the right strategy for you. There are ways to save money without turning
your home into a good-deal-landfill.
Avoid anything conveniently placed. If they are flashing it where you can't miss it, it is
probably making them a lot of profit. Stores know that cash registers and the edges of
main aisles are prime real estate, so that's where they put their money-makers. Let
them make money off someone else!
"Thin" your pile before paying. Those great deals lose a lot of their sparkle before
you even pay for them. Pause before you get in line and examine each item. If you
have the smallest reservation, don't buy it.
Bring a buddy. Not your spendthrift sister who has eighty different store cards in her
Prada wallet, but that one friend who is both brutally honest and has a good eye for a
bargain herself.
Leave the kids at home, if possible. I couldn't, and boy did I wish I had. Toddlers get
bored quickly, and the hours spent poring through clearance racks were bought with
a fast food lunch that ate up much of my hard-won savings.
Pay cash. It's the only way to guarantee that you won't spend this week's grocery
money on next year's wrapping paper. It also guarantees that you won't be hit with a
huge credit card bill after your merchandise has lost its sparkle.
In the end, I came out ahead, with a bag of Mulberribush shorts bought for under four
dollars a pair and a lifetime supply of Christmas cards purchased for a fraction of
what I would pay next November. But these awesome deals would have been
overshadowed if I had bought even a few of the non-deals that filled most of the
stores.
This entire page can be summed up in one Latin phrase: caveat emptor. Buyers
should always beware when companies spend millions of dollars to draw us into
their lairs. Keep your wits about you and evaluate every "deal" carefully. Don't get
caught up in the sale fever, or you may find yourself in debt despite your supposed
savings.
Amount Spent: $44
Amount Saved: $71
Difficulty: 2 (not too bad at all)
Time: 4 Hours
Next week's habit: The Envelope System
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