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 23rd, 2007 at 7:00 am
hi nina, you’re a lucky girl for getting such a good deal. Not a lot of people can claim as much =).
I dont know if you will agree with me, but I think it takes some kind of awareness to be able to get a good bargain. Awareness of existing prices and deals in the market, awareness of the golden mantra when shopping “what’s the catch?”, awareness of where you are in your financial plan, awareness of how much money you really have and how much is not owed to someone else. It’s amazing how we all forget these things when we see something we have been lusting for since forever.
May 23rd, 2007 at 12:58 am
Simple lang naman dapat eh. Kung walang pera, huwag gumastos. Do not mortgage your future. The best solution is kapag pumunta ka ng mall eh siguraduhin mo na pang pamasahe lang and dalang pera.
May 22nd, 2007 at 9:14 pm
[...] Money Smarts: Curb spending habit #2 — give yourself a time-out [...]
May 22nd, 2007 at 4:22 pm
On one hand, I think I was guilty of impulsive buying when I bought my car. The salesman told me, the offer is only valid until I walk out of the showroom so I grabbed it. It was a very good offer (huge savings) and during that time, no other showroom has a promo so no regets.
May 22nd, 2007 at 4:00 pm
Gosh, I remember the family first days when someone will take you while you were at the mall then drag you to their office and convince to buy a plan from them (which they call investment). During the “selling/convincing” period, if family first agent was able to sell/convince someone to buy a plan, he’ll make an annoucement, everyone will stop what they are doing and clap their hands.
The thought of being forced to buy something you don’t want/need is so irritating and annoying. I remember bargaining for more than one hour to let me go. I’m a spend-thrift but I’m not stupid to buy that crap. I’m sorry but I really think they sell crap and their marketing scheme sucks.