Women24 - Spend wisely

Ancestry24 Careers24 Entertainment Fin24 Food24 Health24 Kalahari.net Mobile News24 Property24 Sport24 Weather24 Wheels24 Women24 GoTravel24

Paper is so last season

Tech-savvy youngsters are making coupon clipping a thing of the past and turning to their mobile phones instead.

Women are more cautious

Fewer women get duped by fraudulent investment schemes because they are generally more risk-averse than men.

Book Club | Astrology | News |

Celeb Gossip | Soapbox | Hotties | Series Addicts |

your voice, every day

The Good, the Bad and the Ugly.


Ask an expert...


Sponsor Links First for Women Dial Direct Your Homeloans UK Lotto Life Insurance Classified ads Car Rental Best Car Deals Compare Insurance Quotes Life Insurance for Women

29 April 2008

Spend wisely

We all love to spend, but at the end of the day we end up with more debt than bargained for. Watch how you buy, compare prices and learn to spend wisely…

One of the reasons we work is so we can spend money and treat ourselves, but the pitfalls of over-spending are many and bring little satisfaction. Wise spending, says Bruce Cameron, author of Financial Freedom for Women, (Zebra, R99,95), is essential if you want to achieve financial independence. Bruce, who is also editor of Independent Newspaper's Personal Finance supplements, has these tips for learning to spend wisely:

Day-to-day spending

Write a shopping list and stick to it. Wandering down the aisle grabbing what inspires you will cost you more.

Don't be shy of peering at the price-per-kilogram label for produce. Just because a box is bigger and cheaper than its shelf mate does not mean it's the bargain.

Be organised and shop at supermarkets. Convenience stores cost you more because they open early and close late.

Be wary of 'best buys'. Offers at the end of supermarket aisles are not always cheaper because the product producer pays more for this coveted position. Get into the habit of comparing prices.

Never borrow to finance your daily needs; the interest will make each item cost you more and will soon land you in debt.

Splashing out on something big?

Quality is particularly important when you are buying high-priced items, such as a DVD system. In this instance it may be worth your while to pay a bit more to make sure you get a better quality.

Shop around; different stores offer different prices for the same item, so if it's an expensive item it is worth doing your homework.

Hire-purchase can be tempting, especially if your funds are tight, but it can end up costing you a lot of money in high interest rates. You may be better off giving yourself a budget and then buying accordingly. If, for example, you have just bought a house, it may be worth your while to buy second-hand furniture; through flea markets, the classifieds or auctions. Just be careful to stick to the price you're prepared to pay and don't get carried away on a wave of enthusiasm.

Get a guarantee
A guarantee can be an indication of the faith a manufacturer has in a product. It is worth factoring in the guarantee details when buying a product. You get two types of guarantee:

A full guarantee ensures that no matter what goes wrong, your purchase will be replaced or repaired, or you'll get your money back.

A limited guarantee means that the guarantee will only be met under certain conditions – the parts may be replaced at no cost, but you will have to pay for labour; or not everything is guaranteed. Remember to check the guarantee policy of the store; some will take the goods back easily and others will expect you to deal with the manufacturer directly. Always keep your sales slip and guarantee forms in a safe place.

Street-smart shopping
Beware of shopping on the street. While this is a popular way of picking up bargains, there is also a risk of scams. You could be buying stolen goods or cheap counterfeits. While the price might seem genuine, the quality often is not, and you have no comeback if things go wrong.

Watch out for the plastic trap
Credit cards or store cards can be a sure-fire way to lead a girl astray. Be wary of credit cards, Bruce warns. It is too easy to use a card for an impulse buy, particularly for something expensive. If you have a tendency to spend easily, avoid credit cards and store cards altogether, as they can lead to debt and trouble. And never use the budget part of your credit card; it is anything but budget.

A last bit of advice: Don't try to keep up with the Joneses. Chances are they don't sleep easy at night because of the debt burden they carry.

Previously published in FAIRLADY, Subscribe now and save