How to Save Money When Shopping

Everybody loves to go shopping and indulge with the pleasure of spending hard-earned money and swiping credit cards once in a while. It is so addicting that it is officially classified as a medical condition. For some people, shopping is a de-stressing habit necessary to clean their systems from the debris of pressure and hassle, while others just do it to enjoy their privileges.

It is never wrong to buy what you want for as long as you can afford it, but it’s a different matter when you start to spend beyond your capacity to earn and pay (don’t you love credit cards?). In the process, piles of debt start to accrue only to leave you hanging. If only you can shop for money, but it’s not that easy. It will never be. Soon enough, law suits start chasing you and your anecdote ends in a tiny dark room called cell. This big problem happens only because you don’t know how to save money while spending it.

Needless to say, discipline, prioritization, self-control, and diligence are of utmost importance when you have money to spend thorough plans. You can still save money while shopping but you have to be very practical, critical, and overall smart. Here are some tips to help you suppress the careless shopaholic in you.

1. Differentiate wants from needs

Wants can wait but needs cannot cannot. Sometimes, we have the illusion that wants are more important because they are more appealing and fun to have. A luxury bag seems more important than an infant formula to an irresponsible mother, the same way saving for medical bills is not as exciting as buying new clothes.

Know the difference between a WANT and NEED
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A lot of people have financial problems due to their incapability to separate what is necessary in their lives from what they just drool about. It is the nutrition and not the taste that matters most. Prioritizing what you urgently need is a key to successfully saving money. Check your supplies. Ask your family about the things they need. Look around the house before you rummage on your closet to see what piece of clothing you need to add. Determine what things you can live without and start writing down indispensable things first. Again, by indispensable, it means realistically indispensable.

2. Check prices

Not everything you want or need is affordable
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Internet is a great invention that you should take advantage of. No, this is not to encourage you to order a new pair of Prada shoes or the latest generation of iPAD online, but for checking up prices. Know what brands and stores have the cheapest finds. In case you are not certain on the quality, you can always search for reviews and ask around forums or friends. Google is just a click away. If you really need to indulge on luxury goods once in a while, then do a price hunt too. Zappos, for instance, has tons of luxurious shoes to choose from. Prices are also available for you to compare.

3. Set a limit.

Fine, so you already organized your list and decided which ones are on top. Unfortunately, you still have a limited budget and there is no chance of you winning the lottery anytime soon. All of your priorities might not even be covered for obvious reasons.

You should know what you can only afford to spend.
Set a credit limit that you can afford.
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Set a limit of what you can shell out. Using credit card if you are short of cash is not a bad thing if only you know when to stop. Ideally though, credit cards should only be used for emergencies and just pay cash whenever you can. At least you know when you are already running out of money. If you think that is not possible (come on, we know that credit cards are inconceivably convenient), make a habit to pay right away what you jut spent using a card. That means you have money ready for spending.

If you are not too confident with your self-control, go to your bank or credit card company, and ask them to set a credit limit lower than what you currently have or what you can afford. You can always reset your limit in times of emergency anyway. But hey, buying a new pair of True Religion jeans for a Friday night-out is not an emergency.

4. Save for any item more expensive than 80% of your entire income

Shopping is like a grand vacation—it doesn’t happen too often, and you have to save for it to become a reality. You have to plan it with all your expenditures and liabilities in consideration. To make it simpler, just deduct your monthly financial obligations, including mortgage and credit card payments, from your monthly income. From there, set aside 60% of what’s left and use that for all your daily expenses. The remaining 20% should be saved in the bank while the other 20% is your only money for luxury.

Saving before shopping is like planting a tree:
You have to wait until it grows before you can harvest
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What if there is no other 20% left? Obviously, that means you have no money left for luxury. That’s why many people take multiple jobs or look for sidelines. Just ask the Avon lady in your neighborhood.

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