Sale- a friend of savings or an enemy of savings? + A Sale Shoppers Guide!

How to Buy Stuff on a Sale Guide by DarshD-

We love to save and purchase things we always wanted or things which are releasing/launching in future.
But there is a bump on your road to the savings goal.... It's called a 'Sale' or a series of sales.

Should you purchase stuff that's on sale? How should you plan your purchases? Please read on to know more!!

Here are some precautions---

1. Is it necessary now? 

If you can live for this month without it, then you should consider postponing the purchase.

2. Will the price drop further in future?

 If the discount is 20% or 30%, and if the product will be discounted even further in future (Electronic good especially) then you should probably wait.

3. Will the price increase in future? 

Some products' price depends on oil prices, exchange rates, scarcity and other socio-economic factors. If your product is among them, then you should buy it unless it makes you take money out of your investment/bill payments funds.

4. Is the discount more than 70%? 

Sometimes a sale has HUGE discounts like 90%, if the product is something you wanted for a long time and a sale like this will not return for a year, then you can buy it.

5. Is the product genuine? 

Sometimes, the products may be fake and that's why they're on a sale or have a huge discount like 90% off. Usually, this happens with clothing or some other products which are prone to have fake products. If that's the case, you shouldn't buy it and perhaps, even complain to the Consumer Court or Police. If user reviews are pointing to a bad or fake product, then it's a red signal and your should skip this sale.

6. Do you trust the shop/website? 

Like the last point, if you don't know the shop or a website well, do your research well before purchasing from it. If not, purchase from the website or a shop you know well.

7. Is the offer a fraud one? 

If you are getting an offer in which you get a product free for purchasing a product then you need to make sure that the product you're purchasing has a genuine & reasonable price. For example, 'Buy a $20 Jeans and get one free!' but check the material and brand and ask yourself, "Is this product overpriced? What if the Jeans was priced $10 and they just labelled it as $20 and made the other one look free so that 2 pairs of jeans get sold easily".

A sale shopper's financial planning-

• Every month, put aside 'Fun funds' which you can use to purchase impromptu products from sale.If your savings are $50, your fun funds can be between $1 to $10 depending on your future goals, monthly expenses and investment habits. 

• The Rule 'Pay Yourself First' applies here as well. That's why I call the amount 'Fun Funds' because everyone deserves some shopping every month no matter how small it is. Paying off debts, bills, taxes and investments do come before you actually spend on stuff you don't need. But I recommend having at least $1 or 2 for purchasing so that you don't feel miserable once the sale ends and you missed a great deal.

• Roll over nature of Fun Funds- If you save money for sale purchases and there's no sale going on or nothing good to buy, you should save the money for the next month so that you can purchase things you want and even contribute to your bigger financial goals, if you feel like it. For example, every month you put aside $5 to spend on a sale, but this time, you only spent $3, then the remaining $2 should go to your next month's Fun Funds, and now you have $5 + $2 = $7 total funds to spend on a sale. This can help you get many things from your wish-list easily. You can also use the Fun Funds to pay a sudden expense too or transfer some amount to your investments or goals if your Fun Funds pool keeps getting larger due to less spending.

I hope this post helps you purchase things you like without affecting your savings and investment habits. Happiness is important in life, that's why you should definitely make purchases of at least $1 each month, for your family, yourself or friends. Purchasing for others, gifting others can actually increase your happiness, according to Harvad Business School psychological research.

So, I guess your planning and approach makes a sale either your enemy or a friend. A Sale is a source of happiness and definitely your friend if you purchase wisely! An enemy if you over-spend, spend when you have overdue payments or spend on things you don't need. 

Happy Investing, Saving & Shopping!!

Image courtesy of Freepik.com

© Copyright to DarshD 2019,

Please comment or mail at darshd555@gmail.com for any feedback or suggestions. This text can be published or reused with my permission or  at least by mentioning of my Pen name (DarshD) and providing a link to this blog. So, feel free to share or include in your textbooks. Also, consult your financial adviser, family and lawyer before making any big financial changes or big financial decisions :)