When Sales and Deals Don’t Equal Savings | Richard Banks & Associates, P.C.

We’ve all been there—you see a deal online or in print and become blinded by how fantastic it seems. Unfortunately, just because a deal seems like it will save you money doesn’t mean it actually will.

While it may be tempting to “cash in” on some of the sales, specials and deals you come across, it’s important to know when and when not to partake.

How Sales Cost You Money

It’s simple: Sales can be a way of turning a “want” into a “need.” If it is something you were not planning on buying or did not need until you saw it on sale, though, you are then spending money on something that most likely was not in your budget.

Make sure you are avoiding the pitfalls of sales that can leave you spending more than you’d ever spend just to get that deal. Are you saving money on the items? Probably. Was it money you needed to spend? Probably not.

Retailers know that the impulse buy struggle is real and have various tactics that can be used to encourage those purchases.

They can:

• create paths for you to follow
• place lower-priced items like food and drinks near the checkout counter
• place impulse products around the higher-demand items
• use sales language that creates a sense of urgency
• offer samples or demos

Ways to Make Sure You’re Not Blowing Money

The ultimate rule to remember is to always have a plan.

Impulse spending can be your worst nightmare when trying to keep to a budget. Did you know that Americans can spend some $324,000 in their lifetime on impulse buys? That is a large amount of money to have spent with no purpose or plan, and could prove costly to your financial health.

It’s also important to note that 64% of those polled by a website called Slickdeals said they shop impulsively when there is a deal.

Instead of giving in and buying something you want when it is on sale, be sure to have a plan established. Ask yourself questions like:

• What do you need at the store?
• How much have you budgeted for this shopping trip?
• Is this a need or a want?
• How much will you have to spend to take advantage of the deal?

When money is tight and every dollar must be accounted for, sales and the impulse purchases that come with them can be a budget-breaker.

If past impulse purchases have gotten you into more credit card debt than you know how to handle, Richard Banks & Associates is here to help you work your way out. Help is just a phone call away! Talk to us about bankruptcy options today.