When our emotions run wild during shopping, our wallets take the hit. I have heard people I interview say time and time again that the most foolish purchases they made were done at the spur of the moment. Most, if not all of them, turned out to be very emotional decisions.
While I was attending a time-share or vacation-share marketing presentation for the first time, my jaw dropped when everyone stopped what they were saying to clap furiously at some couple’s decision to “invest” in the product.
At that time, it was very disconcerting and irritating to me, as I was furiously trying to figure out what the product was all about and what it would cost. Turned out it was a common strategy to heighten emotions and pressure others to do the same thing.
Here’s number two tip on curbing your spending habit:
When buying an expensive item, NEVER buy on your first visit. Give yourself a time-out, say one or two days. Think about it first, read product reviews, look at other merchant’s prices. Not even if the sales clerk says with much concern, “The promo ends today, sir.”
But you’ll say you could have saved a huge amount of money if you get the promo. (And why does the promo always has to end on the day you’re buying the item!)
Here’s my answer to that. If you really need the item, yeah you could save say 10%-15%, which is the normal promo discount in Manila stores. But if you don’t need the item and it will turn out to be an emotional purchase, you can save the whole chunk of moolah and came away without scarring your savings plan. Think about that. Personally, I put the barrier at P5,000, that’s how stingy I have become since I started writing MoneySmarts. 
For every visit to the mall, you will stay for at least three hours and that’s not by accident. Malls and shops are designed to keep you browsing and jumping from one shop to the next before you lose interest. They bombard you with exciting “experiences” and pleasing displays. If you are shopping with a child, you are especially vulnerable. Marketing guys believe that you actually buy something on your third hour.
If you don’t want to be the next victim, give yourself a time-out before you buy that big-ticket item.
May 25th, 2007 at 1:35 pm
hanging around in malls is costly, you have to eat at fastfoods when you get tired and hungry, you grab the “opportuniy” of buying promos or sale, etc. etc.
When you reach home, you suddenly realize, “Ahhh i spent a lot for secondary needs, sometimes, unnecessary at all and will end up lying in your closet!!!
May 23rd, 2007 at 10:16 pm
Hi Salve, I completely agree with you. In fact, the reason why I grabbed the offer (with my car) is because I knew it was a really good offer - (the one I’m really looking for esp the interest rate and the add-ons). :))
May 23rd, 2007 at 10:07 am
one mindset that helps you think if ever really need to buy something is to make it a point to always find time to get to know about the product and promos out there. if you’re ever gonna let it pull cash out of your pocket, you might as well get the most out of what you spend.
May 23rd, 2007 at 10:03 am
Family First is doing their business based on deception and I shake my head everytime I see people being led away by their agents to their office in the 5F of SM Mega Mall…There are already lots of complaints from people in forums I read about their selling tactic but sad to say our government/DTI is not acting on it..I am beginning to think there is a much higher person up there protecting this FFI…Lots of victims are “imprisoned” in a room with several agents ganging up on you till you give in to pressure and sign the contract and swipe your credit card with their insurance products…then right after you step out of their office and went home, you realized you where forced to buy and wanted to cancel the contract..mostly too late…hopefully these kinds of business hard selling can be stopped!
May 23rd, 2007 at 7:04 am
JP, tama ka. It really is simple. But a lot of people still don’t get it. That’s why Filipinos are up to their neck in debt. I checked just this morning the BSP website. It says as of Dec. 2006, Filipinos owe P99.6 billion smackaroos to credit card companies. I couldn’t believe my eyes. =(