Bargains Are Great, But Don't Let Them Steal Your Money

It is great to shop for bargains. They are a good way to save money. However, quite often a "bargain" can turn out ot be a waste of valuable money! Don't let the "bargain price" be the only cost you look at! Remember, the point is to save money!

There are alot of things that you buy and pay a "bargain" price for - it's on sale, it's discontinued, etc. There are things that you sign up for and pay a monthly fee for. These things are advertised as a bargain. How many times have you heard, "Just $29.95 a month!" or "Only $14.95 to start!" That is what grabs your attention, but BEWARE!!!! That is JUST THE BASE PRICE! Watch out for that "Add-on Monster"! He will grab your money before you know what you are spending it on! With all those extra's, add-on's and the cool features... once you look at that total, it isn't a bargain anymore! And we want to save money!

Solution

ASK YOURSELF QUESTIONS, AND ANSWER THEM!!!

Example #1

It is fun to add all those extra's to your cell phone. They sound so cool and neat. Now you're with the "in" crowd! Yes, you are but ask yourself this question.... is the "in" crowd going to be paying that bill at the end of the month? No, you are! So now, look at those features you choose and ask yourself, "Do I really NEED that feature and do I really want to spend my money on that instead of saving putting it in my Goal Fund?" If you are serious about saving money and meeting your goal, common sense will make you delete some of those extra features. Do you really need a video feature or a camera feature? Text messaging is an addition monthly charge, can't you just call them? Did you pay for additional options for a ringer? Do you really need it to play a current song instead of the phone just ringing?
Question: Do you want to spend your money on these features or save your money in your "Goal Fund"? You have to make that decision but remember, when your Goal Fund is not climbing, and you think "I'm not going to have enoung money in time", don't get discouraged. Just remember it was YOUR CHOICE not to add money to it. You spent it elsewhere, like on that cell phone that is sitting in your pocket. Use the Pick and Choose Method

Example #2

And what about TV? They have cable, satalite dish, Pay-Per-View and additional movie channels, etc. Yes, it is a fun thing to think about - all those movies, and dramas, and specials, and documentaries and re-runs!!! Plus regular local channels! Wow - are you set! Base price is only $XX dollars! Well, don't let the wording cost you money. BASIC price is $XX, but if you add all these other extras , the price rises to $XXXXX dollars! Question: "Do I REALLY need to be spending THAT much time in front of the TV to be able to watch ALL these shows and features I am paying for?" Well, if your answer is yes, then you must not need to save any money. But if you answer is no, then you backup, rewind and start over and use the Pick and Choose Method.

The Pick and Choose Method

Tell yourself this... "Basic package, plus required sales taxes is ______, and for that I get _________. Do I really want, muchless need, all those extras? If I pay for them, I don't contribute to my Goal Fund. If I pay for them, I spend that much more time in front of the TV (or on the cell phone) which means there are alot of other things that I could do and want to do, but won't because I am in front of the TV (or on the cell). If I order them, I HAVE to pay for them EVERY month. Is that really where I want my money to go?"

Remember, YOU are the one paying that bill EACH month! You make the desicion. And again, if you do choose the high bill, realize that you won't be contributing to your Goal Fund, so don't be disgusted when your Goal Fund doesn't increase. You chose not to save money.

You can use the Pick and Choose Method with any item that you buy. Just ASK YOURSELF QUESTIONS AND ANSWER THEM! That sales person that is talking you into buying the extras and add-ons, isn't the one that will be paying the bill each month! You will be paying the bill so you decide what you want to pay for.

I went to buy a toaster oven. Found one for $39 - perfect for my budget and exactly what I wanted. Of course there was state sales taxes. Can't get around that! It came with a 90 factory warrenty. Then they asked me if I wanted to buy another warrenty for 1 year for $10. It only covered manufactured, mechanical parts that might break, not wear and tear or anything that might happen to it while I used it. Do I really want to spend $10 on something that I have yet, in my life, to ever have used? If it goes bad in the year, the cost of the warrenty ($10) plus the cost of shipping it back to the maker ($10-15, maybe more because it is heavey) and then wait and wait and do without with the toaster oven (which I use several times a day!) and use my large oven in the meantime which runs up my gas utility bill, which costs me more money. Now, all money spent on the toaster oven is around $75!!!!

Buying the warrenty has cost me nearly twice the price of the toaster oven! And it doesn't stop there. You have to hope that they say the problem is "their" fault for the warrenty to cover it. If they decide it is NOT their fault, they just send it back.

And that is based on the toaster oven breaking within the first year! What happens when it breaks in the second year? The warrenty has expired, your $10 is gone and you still have to go buy another one. You have thrown away $10.

In this case, it was a better choice to not buy the $10 warrenty, add that $10 to my Goal Fund and then whenever it breaks (the last toaster oven I had lasted me 4 years before it just stopped!), watch the ads and buy a new one. SAVE MONEY!!!

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To make money, save money or just stretch what you have-continue reading articles for more tips, ideas and ways to do all 3!