Does the End Justify the Means?
But how good is a deal when you are buying things you really do not need? We justify this type of spending by saying to ourselves that we are really saving money because eventually we can give an item away as a present or use it "later." Tying up money on stockpiles of products we don't use is never a good deal. Going into debt on products we have no real immediate purpose for is also never a good deal.
Nickels and Dimes Add Up
Bargain hunters can nickel and dime themselves into debt that they later regret. So how does someone whose hobby is finding and buying super deals do so without going into debt? Get a plan of action.1. Figure out how much cash you have to spend each month on "hot deals" and stay within that budget.
3. Pay cash when possible. If shopping online with credit cards, set the amount you spend aside in cash or deduct it from your checking account so you can pay the bill promptly when it arrives.
4. When buying end-of-season clothing, purchase basic, classic styles. Avoid buying trendy fashion items to wear next year because when next year arrives, chances are the trendy pieces will look dated and unappealing.
5. Avoid accumulating products which cannot be used within a reasonable amount of time. This is especially important with food items with expiration dates.
6. Buy items you need and avoid items you think you may use if you have them around.
7. Buy gifts in advance only when you have a name to go with the gift. Avoid the "I'll give it to someone" trap.
8. Always ask yourself - how badly do I need this? Buying items you don't really have a need for will tie up money you may need later for something you really need - like a new transmission on your car.
Helpful Tools
-
Budget Calculator
- Basic Compound Interest Calculator
This calculator helps you to understand how much money you can accumulate by saving small amounts of money each week in an account.
- Daycare Cost Calculator
What does it really add up to each month?
- Real Hourly Wage Calculator
How much do you really make an hour and how many hours of work will it take you to buy the item you are interested in?
Use this tool to help set a spending budget.

