Shopping on a Budget

Part 2: Major Purchase Making Ends Meet Series

Goals of Shopping

• Necessity• Have utility useful • Thoughtful researched and

evaluated in terms of personal factors (values)– Be proud of your purchase– No regrets of purchase

• Sound decisions are healthy decisions

Guidelines for shopping wisely

Value Lowest/highest Cost

• Buy things that will be useful, meaningful and lasting Value

• Don’t buy clutter• Unless it is a necessity, take time to

talk yourself out of it. • Know the return policy of store

Guidelines for shopping wisely

• Find at least three quotes before buying know what is a realistic “ballpark” price of object

• Have a life cycle of the object know how long you want it to last.

• Write down the features you want before buying do not get “oversold”

Guidelines for shopping wisely

• Be able to walk away from buying it see how you react to not buying the object. (unless a necessity)

• Research the products before buying (Internet, magazines, word of mouth)– Know the product; do not buy on

irrational expectations

Guidelines for shopping wisely

• Be focused, do not get distracted by impulsive buying everything can wait

• Stay within your means – do not spend outside your budget

• Take your time, do not be pressured to buying without a thoughtful analysis of the purchase

• Do not spend more money on transportation than on the money you will save

Saving to buy

• Make “payments” to a bank account to save for purchase

• Be focused on putting aside the same amount for each month towards the purchase

• Do not touch the money unless you have changed your mind

• Do not go “reward” shopping after taking the time to save

Internet Exercise

• Take one of the three purchases you want in the next two years and find three quotes on the Internet

• Do you really want it? Can you live without it? Do you want to save the money?

• If you really want it, make a plan to buy it in one year.