consider your spending

Hello Week 29 of Project Money.  My Project Money coach, Jess Davis shared an article with me from Frugality Magazine titled “5 Things You Should Consider Before Buying Anything.” For me and for many of my followers who want to increase their savings and decrease their debt, this article really hits home about the basics of how to eliminate the yo-yo diets of unnecessary spending while trying to understand perhaps the psychology of spending.  The five tips are as follows: 

• Decide how much pleasure a purchase will bring you.  Yes we all acknowledge there is necessary spending like one’s mortgage or car insurance, but ask yourself if the item you are about to buy gives you pleasure.  We can all relate to buying things that advertising told us we needed to have or the store display enticed us to spend money on a gadget, but once you owned it, the novelty wore off.  Be honest with yourself about whether that new gadget will be used every week or will be gathering dust in the back of a cabinet/closet.
• Decipher the item’s longevity.  While some items seem to be a bargain, they may not have the longevity as a more expensive or name brand item.  For example, I always thought I was further ahead by buying batteries from my local dollar store.  Now I invest in a name brand alkaline battery because their value exceeds the cheaper batteries.
• Consider if you really want it.  I now often employ what the article refers to as lag time between a purchase.  In other words, if I am going to purchase a larger more expensive item (say 50 dollars or more), I take time to research the item which in many cases includes leaving the store.  That act takes away the temptation.  I also rarely will buy items if someone approaches me.  I want to be in charge of deciding what I need and want and this approach helps me save money. 
• Decide if you can reuse, borrow, or rent it.  This concept was never really in my vocabulary before Project Money and I continue to practice.  Spending money is not the only option.  I can talk with my friends and borrow things.  Recently I attended a fancy wedding in Boston.  Instead of buying a brand new dress, I borrowed one from a colleague down to the matching shoes.  Sharing is a way to avoid expensive and unnecessary expenses. 
• Decide if you can find your item cheaper elsewhere.  Companies compete to have our business.  Before making a purchase, take time to shop around, negotiate when possible, or compare prices.  The other day I purchased a pair of pj’s for my daughter but upon purchasing them, I noticed that the waistband was ever so slightly stretched out.  By inquiring, the cashier took off ten percent.  I also made another small purchase recently.  When the item I was looking for was not available, the manager sold me the floor model at a discounted rate. 

By employing these five strategies consistently, I have been able to save a good amount of money in a relatively short period of time.  I am now focused on living within my means, not getting tempted by wanting to live in a bigger home, and I am able to more easily save money for that rainy day. 

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