This post is sponsored by Canopy Credit Union. Learn more about Canopy Credit Union here.
The holidays are upon us, and Canopy Credit Union is here to remind you that diving into shopping mode without proper planning can lead to impulsive and expensive overspending. However, thoughtful, intentional planning can help you both save money and reduce financial stress. In this guide, you will find five strategic tips for smarter shopping this season that will ensure satisfaction with your purchases, but also, your budget.
At Canopy Credit Union, we care about your financial wellness journey, from everyday spending to future savings goals. Serving the Inland Northwest since 1956, Canopy is on a mission to create a happier and healthier community through financial inclusion.
Tip 1: Create a Strategic Spending Plan
Before you shop, write down everything you currently need to purchase, along with items you anticipate needing in the future. Categorize them in a way that works for you (e.g., clothing, beauty, home, yard). Once you have a list, prioritize the items.
Compare your prioritized items to your budget and create a plan to save up for each item on your shopping list. Make sure to communicate and collaborate on your plan with your partner, family, or anyone else in your life involved in your finances.
Tip 2: Avoid Spending Impulsively
Implementing multiple safeguards to steer clear of impulsive purchasing is a long-term plan for success. Here are some strategies to consider:
- Don’t just buy, shop! Increasing the amount of time between when you first start looking for an item to when you actually purchase it will help you choose the right item (buyer’s remorse is the worst) and get the best deal. Try shopping in-person and online to get a full picture of what different businesses have to offer.
- Unsubscribe from marketing emails. While it is sometimes helpful to know what deals are going on, oftentimes emails from your favorite stores result in browsing and unplanned purchases.
- Use the 24 hour rule: Your budget is full of needs, but there are also “wants.” For those purchases that fall under the want category, wait at least 24 hours before purchasing. Giving yourself time to think over a purchase could result in you changing your mind.
- Make it hard to pay. Disconnecting your credit or debit card from online shopping sites will make paying a hassle – and that is the point! By having to input your card information before each purchase, you will be forced to slow down and think about whether or not you actually want to make it.
Tip 3: Shop Off-Season for Discounts
Looking for a new outdoor umbrella for your summer patio? Or hoping to score a down jacket for winter? Pause on purchasing seasonal items during the season you typically use them in. Instead, research the prices of items on your shopping list in their off season.
A retailer’s need to move inventory in the off-season can be your reward! With price tags substantially less than what they are during peak season, it is wise to put a hold on purchases that can wait. Additionally, hitting pause on purchasing these items will give you time to ensure they fit into your budget, and give you insight into whether or not you actually need them. Create a list of items that you don’t need quite yet, but may want next year.
Here are examples of seasonal items to keep an eye out for off-season:
- Fall – Holiday decor, backpacks for the kids, electronics, and new furniture.
- Winter – Cold weather coats, skiing and snowboarding gear, snow blowers, space heaters, and winter tires.
- Spring – Greenhouses, lawnmowers, sandals, outdoor furniture, and vacuums.
- Summer – Outdoor grills, swimsuits, luggage, kayaks and paddle boards.
Tip 4: Look for Ways to Save!
Coupon Clipping: Take advantage of online coupons, promo codes, and free shipping offers. Websites dedicated to aggregating discounts and deals can serve as valuable resources for finding the best online bargains. But be sure to check reviews and verify the seller to be safe.
Leverage cash-back and rewards programs: Lots of credit cards and loyalty programs provide opportunities to earn points, cash back, or discounts on purchases. Taking advantage of these options when you shop or pay bills can offer savings and discounts on a huge variety of possible rewards.
NOTE: Be wary of store credit cards. Does this sound familiar? “If you sign up today, you will get 15% off your purchase!” Store credit cards tend to have higher interest rates, their rewards are often limited to just that store and they usually come with fees.
Tip 5: Meet With a Financial Coach Today!
Canopy’s financial coaches can help you create a spending plan that works for you, one that keeps you on track with your financial goals. Meeting with a financial coach is always free and is available for everyone. Log on to canopycu.com/coach to sign up for an appointment today!