... the art of shopping

Before I committed to this posting I thought about the psychology of spending. I thought about how empowering it is spend money. You know what I mean. That rush that you get when you say "Charge it!" knowing that your charge card will actually work. Of course there is another kind of rush with spending money. It's best depicted by the commercial of the lady running out of one of my favorite stores like she stole something. Her arms are filled with bags and she is screaming at her spouse "Start the car, start the car!" LOL, I how well do I know that feeling. Shopping is a fine art and when you hit the mother lode there is a euphoria that is better than.... I will let you complete that sentence. Anyway, this state of euphoria can be habit forming. That's how folks end up on those shows about hoarders. As much as I love a bargain, yard sales, auctions, and such I have finally come to terms with enough is enough. I don't have any more space in my house for stuff, no matter how much I save. I have also come to realize that the more I acquire, the more I have to maintain. I am getting too old for maintenance. But, for those of you who are still young enough to enjoy the rush let me share some of my shopping tips. First, never, ever, pay retail prices for anything. Honestly, you can always get the same quality and products at a cheaper price. Today's economy is a gold mine of great deals. As a quick reminder, if you have bad credit, you will find yourself paying higher prices for everything. So, keep or work on getting that credit straight. Let's start with car purchases. DO NOT focus on the monthly payment. When you go into a dealership be prepared to say NO many times. Whenever possible, get pre-approved at your credit union or bank first. The interest rates at dealerships can be RIDICULOUS! Also, know how much you are prepared to spend and stick to that plan no matter what. DO NOT get suckered into that low monthly payment. By the time you pay off that car you might be using it as a lawn ornament. DO get an insurance quote on the vehicle before you commit to purchasing. DO shop around on the internet first. DO ask your dealer about the demos that are in stock. You can save a huge amount of money buying a demo with all of the benefits of a new car. Buying a car after it has a few miles on it is often an advantage, because if it had any bugs the dealer should have discovered and fixed them. It has been my experience that extended warranties are a waste of money. Again, don't look at the monthly payment, look at the total cost with interest. You are better served to save the additional cost of a warranty in a rainy day fund. That way, you earn the interest, not the dealer. If something should go wrong with the new car you are covered by the manufacturer warranty. If something goes wrong after that warranty expires (on average 3-5 years later), you should have money in the rainy day fund to cover it. If nothing goes wrong or you buy a new car, you have cha-ching in savings that can be applied as a down payment and reduce the cost of a new car purchase. Paying extra on the principle also eliminates some of the interest charged. If you are stuck with bad credit, then try to pay off the vehicle early by making additional payments toward the principle. (Warning, some lenders charge a penalty for early payoffs. Make sure that you read that fine print.) This also works well with home loans. It can take a long time for your credit rating to catch up to your current financial status. The same rules apply when shopping for other merchandise. If you can pay cash, then pay cash! If it cost more than you can pay, save up for it. If it is a hot item at the Black Friday sale, charge it if you must, but pay off your charge card completely whenever possible. I know it's not easy but, what's the point of getting something on sale when you end up paying so much more in interest charges? Another tip for the shopping warriors is, if it looks like it is too good to be true, it usually is. If someone approaches you with a sale don't buy! Only buy when you are looking for an item. Always ask questions, always compare. If the salesperson does not accommodate you then go somewhere else. News flash! Money spends almost everywhere. I haven't figured out where it doesn't spend but I am working on that. Sometimes we get caught in the trap of shame and spend our money in places that make us feel bad. You know, those pricey snobbish boutiques that make you feel like you are too poor to be acknowledged. The first rule of shopping is if you are not being treated appropriately, take your business elsewhere. Chances are, not only will you get better prices; you will get superior service as well. That includes everything from cars to fast food. As a consumer you should be sending a message to retailers that if you aren't treated well you will spend your money elsewhere. That will assure that you get quality in addition to quantity when you purchase your merchandise. Okay, time to let the dogs run. Come back and see me soon.