Psychology Of Shopping?

by Kathryn Land on February 11, 2012

 As many of you are probably now seeing the trickling in of your monthly credit card statements, which debut all of the last minute Christmas shopping expenses, you may be thinking to yourself “things have got to change.”  You may be searching for ways to decrease your monthly spending.  Take a segment of your spending, groceries namely, and picture this amount looking drastically lower for the year 2012.  As I often tell the people who attend my couponing classes, we don’t have a lot of control over monthly, fixed priced obligations like mortgages and insurance.  You do have MUCH control, however, over what you pay for groceries.

Using not just coupons, but understanding the sales cycles as well as the psychological marketing techniques retailers use to get you to buy more can help you take this control. 

 Many of you may know the ABC basics of using coupons, i.e. doubling, stacking, etc.  Know that it’s possible, however, to use a coupon and not save any money.  For instance, that $.50 coupon on Folgers coffee may be burning a hole in your pocket, but if you rush in to use it when the coffee is $8.99 this week, you will be doing your wallet a disservice.  If you pay careful attention, notice that most products go on sale every 4-6 weeks, and will most likely land a rock bottom price on a pretty consistent basis.  Therefore, if you hold the coupon, and use it in 2 weeks when Folgers is $5.99, then you come out way ahead in the game. 

 Something else to think about on your next trip to the grocery store: most retailers have studied consumer behavior rather extensively, and they consequently design their store’s shelves, displays, pathways, etc in ways that prompt higher spending on our parts.  As an example, if you typically start off in the produce section, I want you to end up there LAST on your next trip.  Studies show if we start off in a healthy section such as produce, then we feel less guilty about adding impulse items such as chips, cookies, etc later; as a consequence, we spend more than what we really need to.  Pull some reverse psychology on yourself, and you may end up with less extraneous boxed food items.  It’s something to think about, and you just may find that your spending habits change for the better.

 If you’re interested in learning how to coupon and start saving a significant amount on groceries I teach coupon workshops at churches, organizations, and private businesses.  You can contact me at strategiccoupon@gmail.com or call 678-863-1550 to set up a class for your group.

 Blessings,

 Kathryn Land, M.Ed.

Strategic Couponing

 Hamilton Financial Bridge financial literacy counseling is available over the phone or in person. Feel free to contact us with your questions about credit, closing credit card accounts, budgeting, debt, mortgages, foreclosure prevention and finances at hamiltonfinancialbridge@yahoo.com.

         Until next time – Keep Crossing the Bridge to Financial Literacy

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Financial Literacy: The Steps For 2012

by dewayne on January 7, 2012

Happy New Year! Now is the best time to reflect on financial decisions made last year and plan for the new year. We want you to start the new year by making the correct steps towards crossing the bridge to financial literacy. As we start a new year I am reminded of a quote by former President Calvin College. He said, “Nothing in the world can take the place of persistence.” I am asking you to be persistent with using goals for your families’ finances. In my last article I gave you a clear plan of action to start to take control of your finances and to make positive steps towards crossing the bridge to financial literacy. This time of year people make all kinds of resolutions for the new year. Some of which have probably already been broken.

I am not one that puts a lot of stock in resolutions but believe promises and goals are more important. I want you to make real promises and write down your goals. People that write down their goals have a better way to clarify what they want to accomplish. Once you have your goals written down, then you need to develop a plan and track for results. You must always be persistent and determined! Don’t ever give up or quit!

Here are goals that I hope you will develop and accomplish in the new year:

1) Make a written budget. This is the most important first step towards crossing the bridge to financial literacy. Without a written budget you are allowing your money to control you. A written budget is your GPS for your journey to crossing the bridge to financial literacy.

2) Track your expenses. Tracking your expenses daily for at least 30 days will help you make sure your written budget is working as you planned.

3) Make sure all of your expenditures are aligned with your family goals. There is a huge difference in wants vs. needs. By making sure all of your expenditures are aligned with your family goals you are putting yourself in a stronger position to meet your financial goals.

4) Turn your major holiday expenditure, gifts, into a fixed expense. The holidays are now over. You have had time to review how much you spent. You can either divide the amount by 12 or 52. By saving the amount you spent monthly or weekly you have now turned a major non-fixed expense into a fixed expense and made plans for the 2012 holidays.

5) Make a plan to get out of debt! List all of your debt, including any new debt. You can either start to pay off the debt with the higher interest rate or the smaller balance. If you pay off the smaller balance you will need to apply what you were paying monthly on the smallest debt to the next smallest balance until all payments are being made to the largest balance.

6) Plan for your future. Make sure you are making the maximum contribution to all retirement programs to which you have access. If your employer offers a matching fund program, please take advantage of this. It is free money for your future. These steps will get you moving in the right direction to crossing the bridge to financial literacy.

Hamilton Financial Bridge financial literacy counseling is available over the phone or in person. Feel free to contact us with your questions about credit, closing credit card accounts, budgeting, debt, mortgages, foreclosure prevention and finances at hamiltonfinancialbridge@yahoo.com.

 

        Until next time – Keep Crossing the Bridge to Financial Literacy

 

 

 

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Take Charge Of Your Finances!

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Is no interest for 12 months or 6 months on an in store credit card a good idea? First, remember if you apply for an in store credit card you are going to lose points off your credit score! Second, make sure the purchase is something you need and not just want. Finally, remember the [...]

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Are You Playing the Credit Score Game?

July 20, 2010

Most of us have been taught about credit, closing credit card accounts, budgeting, debt, mortgages, and other financial ideas from watching our parents. Because this is true, some bad habits about financial literacy have been passed from one generation to the next.  In their defense our parents were not taught how money really works. We [...]

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