By Nina Malkin
ALL YOU Magazine
Published: April 2006
You consider yourself a smart shopper who doesn't waste a dime. But even if you clip coupons, visit buy-in-bulk stores and hunt for bargains, your "thriftiness" could actually be getting you into debt. Find out where your money goes by uncovering your unique spending personality. Then give yourself a money makeover to get back on track.
Start Here: Check your spending habits.
Answer yes or no to the following questions to reveal your true shopping personality.
1. You've got time to kill while the kids are at soccer. Do you head to the mall?
2. Do you make a point of shopping big sales early to get good bargains?
3. When you go out to a wholesale outlet for a few specifics, you inevitably find other things you can use?
4. Your daughter is upset because a friend said her boots were "so last year!" Do you buy her a new pair?
5. On your lunch hour you see a cute skirt that would look great on you. Do you buy it without trying it on and tell yourself you'll return it if it doesn't fit?
6. You hate malls. Do you find catalogs, infomercials and shopping online much more convenient?
7. While your husband drools over power tools in the mass-merchandise store, you stroll the aisles. Do you fill a basket with socks, hair accessories, a shower curtain, and more?
8. Being frugal is fairly easy for you. But is it much harder to pinch pennies during the back-to-school season, around the holidays and right before summer?
9. Some friends invite you to go shopping. Are you eager to go even though you don't need anything?
10. Your fridge is on its last legs, but a new one would be pricey. Do you avoid the big-ticket purchase?
11. Your son is dying for the latest gaming system that just came out, but his birthday isn't for months. Do you get it for him anyway?
12. You've started brown-bagging to work to save money. Do you still buy coffee or a snack most days?
If you answered yes to two or more of these questions, you're at risk for overspending. Get help for your specific problems by identifying your shopping personality.
Next Step: Find your shopping personality.
Identify the statement that sounds most like you. Then read on for your money-makeover strategies.
PERSONALITY #1
"I shop when I'm bored or have nothing to do"
You hit the stores for emotional rather than practical purposes, so you're more prone to make impulse purchases and to buy stuff for "when I lose 10 pounds" or Christmas 2008. Shopping is probably a social event for you, too, and your friends may unwittingly encourage you to go beyond your budget or buy things you don't need.
Make over your spending
- Shop in your closet - You'll no doubt find cute clothes you've forgotten about. Or invite friends over for a night of clothes swapping.
- Budget for binges - Every woman deserves some crazy cash. According to Catherine Williams, Vice President of financial literacy for Houston-based Money Management International, that should be around three percent of your annual income.
- Deduct as you go - Keep track of your spending when you pay with plastic. Just deduct the amount from your check register.
PERSONALITY #2
"Buying is easy online and with mail order"
You're not much of a mall shopper but you do some damage on the Internet, with catalogs and through infomercials. Since you can't try things on or test them out there's a greater chance that you won't be satisfied with your purchase. (You could return things, but do you?) And don't forget you're racking up service and shipping charges, too.
Make over your spending
- Surf for savings - Make use of comparison shopping sites such as www.nextag.com and www.shopping.com. According to a recent Indiana University study, consumers save 18 to 20 percent by comparison shopping online versus visiting a store.
- Invest instead - Before buying something online, Williams suggests, use an investment calculator to see how much you'd earn if you invested that money. Go to a site such as www.bankrate.com or www.cnnmoney.com and plug in the purchase price of the item you're considering.
PERSONALITY #3
"I only pick up little things here and there"
You avoid big-ticket items like appliances and designer clothes, so you think you're saving money. But whether it's bottled water, fresh coffee and a package of mints to round out your brown-bag lunch, or a lipstick here and a new moisturizer there, your puny purchases can add up to big bills. When it comes to shopping, you need to sweat the small stuff.
Make over your spending.
- Curb your cash withdrawals - Since little purchases tend to be cash transactions, try taking out $20 less from the ATM each week.
- Try the $5 savings plan - Small daily spending really adds up, says Williams. Spend just $5 less each day and save $1,825 a year. Use that money to finally buy a new fridge or to invest.
- Shop against the clock - Go to the mall before an appointment you can't be late for. With a deadline, you'll pick up what you need and get out before dangerous browsing occurs.
PERSONALITY #4
"I don't treat myself, but my kids deserve it"
You're thrifty when it comes to yourself, your husband and your home, but you can't resist your kids. It's hard to discriminate between what they want and what they need - or maybe you overcompensate when you can't give them time and attention. Liberal spending doesn't teach them the value of a dollar; and it depletes your savings.
Make over your spending.
- Team up with other moms - Kids want what their buddies want, so make a pact with their friends' moms to stop overindulging.
- Start a seasonal fund - To save for heavy spending times, Williams recommends putting away $20 a month per child. Set up an online savings account that allows you to transfer funds.
- Adopt a "chores for scores" policy - Tell your kids that if they want something special they have to earn it. When they beg for a new outfit or toy, add a job you need done around the house to their regular list of chores.
Copyright © 2007 ALL YOU magazine. All rights reserved.