The following is a guest post.
Andrea Woroch is a consumer and money-saving expert who shows people how they can live on less without radically changing their lifestyles. From smart spending tips to personal finance advice, Andrea transforms everyday consumers into savvy shoppers. She has been featured among top news outlets such as NBC’s Today, Good Morning America, Dr. OZ, CNN, New York Times, Kiplinger Personal Finance, and many more. Follow her on Twitter or Facebook for daily savings posts.
As a consumer savings expert, it’s my job to know how people can save money on everyday expenses and little indulgences. Though I’m always on the lookout for new strategies, there are some money-saving antics that I don’t condone, including anything that requires you to pay more than you budgeted for, or sacrifices your integrity in the name of savings.
In a new twist on my typical tips, here are several savings strategies I don’t recommend, and why.
1. Opening a store credit card.
Anyone who’s purchased something recently has likely been tempted to open a store credit card for the upfront savings of 10 to 20 percent off. However, these cards should be approached with caution. Not only do consumers typically purchase more when opening a store card with the notion of getting the most from the initial discount–a move that can cause a serious blow to your budget—but these store cards carry high interest rates. Annual APRs are usually over 20 percent and opening them can often ding your credit score making it harder and more expensive to negotiate a future home or car loan. If you shop with the retailer regularly and can afford to pay off your balance monthly, consider it for the rewards. Otherwise, politely decline the cashier’s automated offer and stick with more traditional payment methods.
2. Buying more to qualify for free shipping.
Since many online retailers offer free shipping with a minimum purchase, it’s tempting to load up your shopping cart to reach that minimum. However, it doesn’t make much sense to buy items you don’t need just to avoid the cost of delivery, especially if what you add to your cart ends up being more than the cost of shipping. Always look for free shipping codes on such deal sites as FreeShipping.org before checkout to ensure savings. Otherwise, I recommend you pay for shipping when you’ve budgeted for just one item to avoid wasting money on items you don’t need.
3. Using cash instead of reward credit cards.
This is a tricky one, since consumers who can’t control their spending should definitely opt for cash over credit cards. However, if you’re able to pay down credit card debt every month, it’s better to earn such rewards as cash back, travel miles and gift cards on everyday expenses than to simply pay with cash. You’ll get more bang for your buck and can use your accrued rewards to offset luxury purchases like a vacation or dinner at a fancy restaurant.
4. Spending weekends clipping coupons.
Extreme couponers boast about paying nothing for practically everything they purchase, but they do pay their fair share in time. It takes lots hours, energy and organization to find coupons for everything on your list, and in my opinion it’s unnecessary in this digital age. Free mobile coupon apps like the popular one from CouponSherpa make it much easier to use paperless coupons on the go, especially when you can load up your supermarket loyalty card and forego using your smartphone at checkout.
5. Shelf clearing.
Speaking of extreme couponers, shelf-clearing is a strategy I particularly loathe since it takes away savings opportunities from others. I’m not alone in my distaste for this approach to saving, as store owners have recently tightened their coupon policies to restrict the number of items a shopper can purchase at the advertised discount. I enjoy saving as much as the next person, but I draw the line when it becomes more about winning than about practical purchasing behavior.
6. Stealing newspapers for coupons.
I’ve already mentioned my lack of desire to cull through circulars every weekend, but I understand those who incorporate it into their daily routine without letting it consume their spare time. However, what I don’t understand is people so desperate for coupons that they’ll stoop the level of stealing them from neighbors, grocery stores and delivery trucks. In addition to harming the people in your community, delivery drivers in particular may be required to pay for missing copies of newspapers out of their own pockets, making this strategy especially repugnant.
7. Returning items after use.
We all know someone who has purchased a dress for a special event and kept the tags on, or sported a new clutch on a first date only to return it the next day. I understand the impulse to avoid spending money on something you’ll only wear once, but there are more honest ways to accomplish this. For example, shop a friend’s closet for a new outfit, or peruse the handbag section at discount retailers like TJMaxx for cute clutches priced under $20.
8. Swapping tags or packaging.
Have you ever considered switching tags on an item to score a discount? Me either, but unfortunately I know someone who switched a queen-size duvet cover with a lesser-priced twin package. When I heard about this, I couldn’t stop thinking about the inconvenience this would cause an unsuspecting consumer who purchased the queen cover in good faith, only to find it’s the wrong size. Ultimately, this strategy is stealing, and there’s no reason to stoop this low in pursuit of savings.
9. Consistently buying cheap items.
After years of spending money on my wardrobe, I know when to save and when to splurge, and the distinction is essential when it comes to actual savings. Stores like Forever 21 may seem like the perfect solution when you want to wear something new everyday, but ultimately their garments aren’t known for being well made (which is why they’re so cheap). Loading up on cheap stuff that falls apart after a couple wears is not as cost-effective as investing in a few well-made, classic pieces that last years. The same goes for home goods and furniture. My brother purchased a cheap, $600 L-shaped couch and is ready to toss it to the curb after just one year. Had he invested in a quality sofa for a little more or searched consignment shops for previously owned furniture, he could’ve had something that would last years, not months.
Are you guilty any of these savings tactics? Are there any other savings tips that you personally don’t recommend?
I definitely agree with this list. And when I used to have a newspaper delivered, it was stolen nearly every morning for a week. Very annoying.
Michelle @ Making Sense of Cents recently posted..Goals and Extra Monthly Income Update
We never have good enough coupons in our newspapers here so that was never a problem. There were a few times when we didn’t get our newspaper though and it was frustrating to have that taken out of our routine. These days I don’t even subscribe to the paper anymore.
Yeah I cancelled mine a couple of months ago. Just wasn’t worth it for us at all. I actually HATED clipping coupons and using them. I am an over-checker and it was eating me alive almost.
Michelle @ Making Sense of Cents recently posted..Goals and Extra Monthly Income Update
I did enjoy reading all the sports news in the paper, but it was making me a lot less productive and was rather pricey considering the stories were online too.
I will admit that I recently stocks up on bottles of hand soap at Walgreens because after sales and coupons I was buying them for only $0.24 each. While I might have picked up 15-20 bottles over the course of the week I made sure that I never cleared the supply at any one time.
Wow that’s a lot of hand soap. At only 24 cents each though I don’t blame you. In cases like that it really does make sense to stock up, but it was respectful of you to spread it out over the week.
I really am not a fan of clipping coupons as I think it takes too much time compared to the savings you really see.
I certainly fall trap to the cash over rewards credit cards. Although I’m lightening up my stance on that a bit and will be looking to get a rewards card soon.
.
Jason @ WorkSaveLive recently posted..Why I’ll Never Get My Future Kid a Credit Card
I’m the same way with coupons. I’ll use one if I happen to see one I would actually need, but I don’t spend time actively searching them out and organizing them. I do think it is more worthwhile in the US though with the amount of coupons available. The trick would be to do it while watching some sports or something.
As for the credit card, definitely get in on that sometime soon. For someone who can be responsible when using a credit card, you might as well take advantage of the free rewards or cash back. Plus you get a free short term loan if you pay off the balance in full each month.
I also don’t want to be that guy that everyone at the check out is waiting behind tutting and sighing!
Sure there’s a way to save money, but I also think there’s more time efficient ways to do it. Time is still money!
Jon recently posted..Who is selling my email address to spammers?!
Great advice-especially about opening a store card. dooooooon’t do it!
This is especially true when you wouldn’t actually visit the store very often. Why carry around an extra card and add the extra perceived debt to your credit rating unless you really need it. I did happen to just apply for a store credit card recently, but it’s where I do almost all of my grocery shopping. So the extra rewards will make it worthwhile.
A lot of these behaviors are either driven my desperation or mental illness. It’s important to strive for balance so that you control your money, and not the other way around. I’d rather be happy with no money than a basketcase trying to squeeze a penny out of everything I touch.
John | Married (with Debt) recently posted..A 3 Step Way to Guilt-Free Vacation Spending
Good point about desperation and/or mental illness. Most people wouldn’t resort to these kinds of tactics unless they just couldn’t think the decision through or they were facing a very tough situation. Some people do get way too obsessed with trying to save money on absolutely everything even at the cost of compromising their ethics. You have to draw the line somewhere.
Opening a store credit card is a bad decision for most people but if you need credit and have the money to pay for it I don’t see a problem. At The Bay you get 10% discount right away with the card and if you are spending $10,000 that is huge savings!
Steve @ Grocery Alerts recently posted..Save $2 On Jamieson Probiotic Sticks, B12 Strips and Melatonin Strips – Hidden Websaver Coupon
For a big purchase or somewhere you shop regularly it is a good idea. The problem is more where the person already has a few credit cards and they say yes to every store that offers them a credit card even if they rarely spend much there. You just have to keep in mind that when you go to get a loan for a car or a mortgage, banks will look at any credit lines as potentially being maxed out even if they are all cleared off.
Store credit cards are the worst yet so many people get suckered in with the initial purchase discount they get. I don’t have any and I plan to keep it that way.
I must admit I have in the past bought more to get free shipping. Shipping is just so expensive sometimes it almost seems worth it. I know it isn’t though.
Miss T @ Prairie Eco-Thrifter recently posted..11 Ways To Make Personal Travel More Sustainable And Less Polluting
Yeah some people will say yes to the store credit card just to save 10% on a $20 item. It may seem like an easy $2, but it can cost you a lot more down the road.
As for free shipping, there are actually times when this is worthwhile, such as when you are extremely close to their minimum and adding shipping would push you over the minimum. If you’re not close though, you do end up just buying something else that you don’t need.
Back when I had the shopping itch (I’ve been SO good lately!), I did fall for that #2 tip way too often. I would try to make it seem like I was saving money, too! It was bad. And then? When you spend a little more, they often have ANOTHER “spend xx.xx more and enjoy a free $50 coupon for your next visit!” and I would often fall for that one, too! It was a real addiction.
Michelle recently posted..Site News and Updates
lol sounds like those online checkout systems are designed for shoppers like you were back then. That extra upselling at the end can sound like too good a deal to pass up.
Most of the items I buy online come from Amazon, so I’ll usually make sure I have at least $25 worth of merchandise in my shopping cart in order to qualify for free shipping. Sometimes I’ll let items sit in my cart for months before hitting the “proceed to checkout” button.
Shawanda @ You Have More Than You Think recently posted..Good Debt: Does Such a Thing Exist?
Sounds like you have strong willpower Shawanda. $25 is a nice low minimum for free shipping. At least it’s not for a website that requires a $100 minimum purchase.
We’ve definitely done the store card thing. It gets really annoying. The rest of these are pretty hilarious, and I can’t believe people switch tags on items! I do always go back and forth on the rewards card vs. cash for our food budget. It seems we always spend more when using the card, but I hate not getting the rewards. Hmmmm…
Jacob @ iHeartBudgets recently posted..How Much Money Did You “Blow” On Fireworks?
I had actually half considered switching a tag once, but decided I’d feel too guilty about it. It would probably be pretty easy to get away with though. I would think credit vs cash wouldn’t make any difference when specifically using it for groceries. I guess you might actually limit yourself more knowing you only have a certain amount of cash in your wallet.
I’ve apllied for store credit cards before and never again will I do it. I only did it because it was the only way to get a discount. Just another way to lure you in.
Yes they sure know how to lure you in. Usually I was always just too lazy to fill out a long form to save 10% on some random purchase. I’m glad I didn’t bother though.
About the coupon thing….. it absolutely takes way more time than it’s worth. Instead of doing that, just monitor the grocery store/drugstore sales in your area, and only buy things when they’re at their lowest price. It’s WAY easier, you save about the same amount, and only takes minutes per week instead of hours.
That’s the approach I take. I don’t even monitor the sales ahead of time though. I just stay flexible when I go to the grocery store and get what is a good deal that I would actually eat. I guess for someone who wouldn’t be doing something productive with the couponing time, it is probably decent savings.
A few years ago a coworker was talking about how they bought a new tv. The same weekend they bought it, one of their nephews was over while they were playing their nintendo wii and threw a baseball at their tv. Needless to say they had a baseball sized hole in their tv. So my coworker took the tv back to the store, said it was like that when they opened it, and took home a new one. I thought it was pretty rotten.
Justin @ The Family Finances recently posted..Mid-Year Goal Update
Yeah that’s pretty unethical too. That’s where the slack return policies of the big box stores hurts them. I don’t think I’d be able to do that despite the big cost of getting a new tv after that.
I agree with John. If saving money becomes such a compulsion that you steal or let it take over all of your free-time, then that’s a problem. I try to just be practical about what I buy. If I need an item that will last, I’ll do my research on price and product reviews to make sure the money I do spend goes a long way. If I need something just to use just once or twice, I’ll go for the less expensive retailers.
Shannon-ReadyForZero recently posted..Student Loan Grace Periods are NOT Going Away
I think this is where most responsible shoppers fit in. A lot depends on a person’s financial situation though. It’s obviously quite natural to spend less and less time chasing saving money when finances are going well.
1) The store my wife gets most of her clothes from has a store card that offers points. $100 gets your $10 coupon, that sort of thing. But the great part about the card is that you can pay the balance at the register… with a debit or credit card. When she goes shopping, she uses the store card and then pays the balance off immdiately with her rewards card. Double points!
4) The problem with digital coupons is that they usually don’t double. Plus, the coupons in the paper are different than the coupons online. I get one Sunday newspaper and clip coupons during commercials.
Can’t complain about double points. That’s definitely one of those cases where a store credit card makes complete sense to have, especially if it’s where she gets most of her clothes. Not all store credit cards are bad. It’s more the temptation to get ones you don’t need that is the problem.
As for clipping coupons during commercials, that would be a good way to be productive and not let the coupons consume too much of your time.
Store credit cards are almost never worth it and I’d only be a shelf cleaner if I’d actually use all of the item in a reasonable time. If the shelf had 100 of that item I would only buy what I could use… not that I’d ever get enough coupons to do it.
Lance@MoneyLife&More recently posted..5 Tips for Your Financial Indepedence Day
Yeah I don’t understand those people who stock up on a full cart of something that will take them years to use up. I’d hate to see their house and the kind of hoarding going on there.
Many of these are just dishonest behaviour, though I am guilty of shelf-clearing on occasion, usually when much of the product has already been sold so I think that’s fair game!
I wish someone would steal my flyers… I never signed up for them and they keep appearing in the driveway just so I can throw them out (since I don’t read them) grrr..
Yep dishonesty sure fuels a lot of these tactics. People too worried about their own money saving to worry about other people. I wouldn’t really consider it shelf clearing if there is limited product available. I think it’s more when you fill a whole grocery cart up with something you won’t use up for years.
As for flyers, aren’t they really the worst spam out there? It’s interesting that if it is e-mail spam there are laws around having an unsubscribe button and forcing people to confirm their subscription. With flyers, you should be able to contact each company and just tell them straight up that you don’t want their flyer. Plus with flyers it is just a big waste of paper.
Such a great tips!
We are only opening store credit card when we are buying something big and than closing it straight away to avoid temptation.
The only other observation I have is that with the current price wars there is very few garments are made to last…
Financial Independence recently posted..July 2012 update (196,000 +7,500 or +4%)
I would advise against opening and closing credit card accounts like that unless it is a particularly large purchase. That kind of activity can be damaging your credit history.
I tried couponing once. I quickly realized that the coupons in the ads were for things I never bought anyways. I have much better luck with the coupons that print at the cash registers.
The buy more to qualify for free shipping would get me every so often. I’d have to catch myself asking, “why am I spending another $20 just to save $6 in shipping”?
MoneySmartGuides recently posted..Government Wants You on Food Stamps
You’re right, most coupons are for stuff that just needs help selling. I used to give those products a try anyway, but now that I’m focused on healthier foods it doesn’t work out so well.
Swapping tags and packaging. You are quite the moral person, because personally, I’ve DEFINITELY thought about it. Sometimes the way the packaging is makes it just too easy. Almost like they’re asking for it. But I don’t do it. Well, I don’t anymore. When I was younger I would do stuff like that and I paid the price too, I was always in trouble with the cops. Now that I’m older and have kids of my own, I see how doing things like that affects other people negatively and is really pretty selfish to do. But when I was younger, I was selfish. Glad to have mended my ways! And now that I’m out of that young and dumb stage, I can say that I agree with you that it’s not a good discount strategy (esp if you get caught by the police and get a record!).
TB at BlueCollarWorkman recently posted..The Whacked Out Blue Collar Roundup
lol, you really got caught doing that?? ouch! It does affect other people though, because then someone else might have to overpay for the tag you switched with. And yeah it is a lot more tempting with certain packaging or tags. It’s kinda like when I was young I would sneak a bunch of 5 cent candies in my slurpees. Not only did I not pay anything extra for them but they got nice and chewy. These days I’m definitely a lot more honest too.
WOW…some of these just sound morally (not to mention legally) wrong. I can’t believe people do it just to save a tiny bit of money. I do use store cards, though. But I only buy things that I know I can pay off right away. Like when I get home right away. The interest rates on those cards are outlandish.
femmefrugality recently posted..How to Write a Goodwill Letter
See TB’s comment above for the legal part of it
I always wondered what would happen when someone tries to pull that small time theft.
With the store cards, even if you do pay them off right away, it is extra assumed debt on your credit history. Plus those extra cards likely results in more junk mail and more risk of a card being compromised.
Good list of advices.
I prefer to save when I want to buy something more or less costly, whatever I use a credit card to do it or not.
It’s funny to do it because when you’re ready to buy, in most cases, either you don’t need it anymore or it has a good save on it.
I think using a credit card is a good way to save a bit more if you can use it responsibly. Unfortunately using a credit card often makes me people pay less attention to the price itself.
Exactly, it’s too much considered as “easy money that I will give back (more) later”.
But as you said, if you use it and reimburse it in full and regularly it’s a win-win situation.
I read somewhere and sometime ago that the rewards are in fact paid by bad users/payers with the usurer interest, hard truth but real fact.
It’s better to be in the good side; I made a financial error 3.5 years ago and paid about 70% of my credit card limit only in interests and overload fees during 1.5 years before I kill it completely.
Sometime a lesson must be learned by the hard way to never forget the facts.
Yes you definitely don’t want to be one of those people being milked by the credit card companies. On another post someone made a good point about how credit card companies actually make most of their money from merchant fees. So even if a cardholder is responsible, the card issuer is still raking in the money. Any extra money they can get from irresponsible credit card usage is just icing on the cake.
All these nine tips are awesome! It’s better to buy cheap items that will save more money.
Glad you like them Audra.