The Top 5 Ways “Saving” Money Costs Consumers

With the struggling economy, almost everyone has less money in their wallet than they used to. Consumers are trying to pay down debt, trying to recover from home value losses, and now trying to pay off escalating student debt. Every company seems to be pushing ways the consumer can “save” money, through coupons, deals, and financing options to get them to spend.

Here are 5 examples of ways consumers don’t really save money with these practices:

1. Buying something at a HUGE discount
The impulse to save is powerful, especially when something is 50% OFF!  Before purchasing anything, take time to assess quality, future fashion worthiness, and the end use. So, the next time you face an opportunity to “Save 50%,” think of how you can really save—by not buying something out of impulse that you really don’t want or need.

2. Buying in bulk
If you have a large family, a commercial kitchen, or eat A LOT of the same items, buying in bulk can be a great way to save. The challenge though, is that buying in bulk oftentimes creates a lot of waste through spoilage. Next time, consider whether a smaller buy might be able to save you, even if you pay a little more on a per item or per ounce basis.

3. Buying on credit
Whether it’s that couch that you can finance “same as cash” or that after Christmas sale that builds up your gift wrap stash for next year, consider finance charges when buying. Many consumers expect that they’ll have money to pay off debt when the future time comes, but find emergencies or unplanned competing expenses make this impossible.

4. Buying something because it is inexpensive
Companies have gotten really good at delivering low prices. Consumers have gotten worse at assessing quality and have used cost as a primary decision maker. Spend some time researching quality, and learn to asses it, so that you don’t buy something today and have a replacement cost again soon. Oftentimes, buying a quality item from the start saves money instead of buying the cheaper counterpart and its future replacements.

5. Buying from daily deals sites
Sure it can be fun to try out new restaurants, plan your entertainment, or even hire out your yard work or housecleaning using one of these sites. Unfortunately, it’s easy to overspend your entertainment budget or even your household budget if you aren’t careful.

If you think you might be guilty of these ways to “save”, here are a few tips:

• Set budgets and stick to them
• Take stock of your closet, pantry, and cupboards before shopping, and keep them clean and organized
• Make lists and stick to them
• Pay attention to your habits
• Shop with others who have healthy spending habits

When in doubt, do not buy it. Most shopping regrets are created by someone making a purchase and then dealing with the consequences.

In future posts, I’ll share additional tips that will help you become a more informed consumer, especially as it pertains to retailers since I have plenty of insider knowledge that I’ll combine with a lot of research and my personal experience.

While I want you to shop with us (since that’s the only way any business can stay in business), I also want to make sure you get the best quality and value, pay a fair price, and love every purchase you make whether that’s with rosieMADE, or anywhere else.