Beware of bargain buys

Let me firstly say that buying a real bargain is financially wise, but one of the craziest financial decisions many people make is to ‘chase the bargains’ or ‘cut price’ sales and there are many reasons for being weary.

Statistics show that most bargain buys are made on items that will either never be used or will be used once and then be stuck into some cupboard never to see the light of day again. If you don’t believe me, then go to a car boot sale, a flee market or a garage sale or just look in your garage and you will be amazed at the amount of stuff that has never been used. Remember, if you don’t really need it, its not a bargain.

Secondly many people don’t consider the ‘knock on’ costs of bargain hunting. For example, the additional cost of transport to the store which has the bargain. It never ceases to amaze me the distance people will travel to find a bargain without realizing that buying the same item at a store closer to them would most probably be cheaper when the transport is factored in. A further ‘knock on’ cost most people forget is when buying bargains on credit, the additional costs make the item more expense than saving and paying cash.

90% of all bargain buys are ‘impulse buys’ and this is generally a financial disaster waiting for a place to happen. My advise is that if, for example, you need a new jacket, try on a few from different stores and find one that is right for you. Give it a day or 2 of thought before buying. Generally items of clothing bought on impulse at bargain buys, look very bargain after being worn once or twice.

And this brings me to one of the most compelling reasons for being aware of bargain buys or cut price sales. Quality! Many people chase bargains and cut price sales because they think that they are saving money and being frugal. Consider 2 product lines that are most often offered on bargains.

Clothing and underwear – Many people use the excuse of fast changing fashions to justify buying cheap and bargain clothing. This is a bad excuse as most of the products are cheap or bargains because they are made from extremely cheap materials and are very badly constructed. The result is that after the first wash, they begin to look old and start to fall apart. Fashions don’t change between washes! There is very little else that is as frustrating as badly fitting or made underwear and socks that develop holes after the first wash. I am not saying that you should not buy clothing at cheaper prices, but I am saying that if you buy quality they will last so much longer and you will genuinely save money.

A second product that is often bought at bargains or sales is tools. For DIY hammers and screw drivers to electric or cordless drills and sanders, many people think that a ‘hammer is a hammer is a hammer.’. As a motor mechanic by trade, I have seen the consequences of cheaply made bargain hammers that shatter on impact and send pieces hurtling through the air.

When making any purchase, firstly consider whether it is really necessary and whether you will use it, then make sure that you can afford it and then ensure that you buy durable quality.

Bargain Buys, Debt Freedom, Finance, Financial Freedom, Financial Peace, Frugal, Money, Wealth Creation