A good sale can be hard to resist. But before you lose yourself to the allure of saving money, ask yourself if you are saving money. This can be tricky to answer as adverts are deliberately made to blur the lines before genuine sales and clever marketing.
It is vital to be mindful of our spending habits and the value of discount deals offered by retailers, especially around the holiday season. If you plan to take advantage of Black Friday washing machine deals or hope to get the pair of boots, you have been eyeing for weeks, ensuring you are truly saving money will allow you to make more informed financial decisions.
It can be Paid in Full
The most important way to know if a deal is truly saving you money or not is by establishing whether you can pay for the discounted item in full immediately without going into debt. If you plan to buy something you want but do not need and have to utilize a ‘buy now, pay later’ scheme or a credit card to make the purchase that you are unsure whether you can pay off, you are essentially taking out a loan to buy it.
This will ultimately lead to unwanted additional costs, like credit card fees and store credit interest fees, which will end up costing you even more than the original product was worth. If you choose to use a credit card when making your purchase to get points rewards or other card benefits, be confident you can pay it off in full without compromising your current or future financial position.
It is the Best Compared Price
To feel satisfied that you are getting the best deal you can when buying something, you need to do sufficient research to see how much it costs at other retailers and online websites. Thankfully, there are free and clever browser extensions, like Honey, that will automatically find deals, discount codes, and the lowest prices of items you shop online, showing you if there is a cheaper option available elsewhere.
Alternatively, you can do comparison shopping on big-ticket items you may be after. This will allow you to look for better deals both online and in-store and show you how similar costs may be when comparing regular prices to sale deals. This will help you decide if the discount is significant enough to justify the purchase at that time.
It is a Planned Purchase
If you are out shopping and come across a product on sale that you were already planning on buying, it can be considered a deal that will save you money. These items would have been included in your shopping budget at full price, so grabbing them at a reduced rate will free up money you did not expect to have.
If you end up buying something simply because it was on sale and not because you had budgeted for it initially, it will end up costing you more money and negate the discount. However, for non-perishable items like canned food, pantry products, and cleaning materials, it can become cheaper to pick them up at a reduced rate as you see them because of their extended shelf-life.
It has Long-term Usage
If you see a deal on an item that is something you use on a regular basis, it will likely save you money if you purchase it at a discount, regardless of how big or small the difference may be. Buying items like your favorite skincare products or your daily make-up staples will save money in the long run as you will not need to restock for a decent period of time. This is particularly applicable to ‘buy one, get one free’ deals, as you know you will use the product and benefit from the free addition. However, for items that you have never tried before or are not planning on using frequently, this deal loses its financial benefit.
For more expensive items, it is worthwhile looking at the cost-per-use ratio. If you buy something on sale, even with things that still remain relatively expensive, and know you can use it for months or even years, you are saving money in the long run. This can be applied to fashion items, appliances, and other non-consumable goods.
It Fits Your Financial Goals
When deciding on whether to purchase a sale item or not, you need to figure out whether it will fit into your priorities and financial goals. If it is within your monthly budget, regardless of being a want or a need, then you can feel safe in assuming you have found yourself a deal. However, if it is something you can do without or will take you over your monthly budget, it will be better to skip it.
It essentially comes down to deciding if a purchase will assist you in achieving the goals you have set for yourself or hinder your journey to reaching them. For example, suppose you are saving up for a substantial purchase, like a car, a home, or your dream vacation. In that case, it is crucial to take a moment to decide if the money is better in a savings account than used on an unnecessary purchase that is disguised as a deal.
