Are Sample Sales Really A Bargain?

Grocery cartsWhen retailers have excess merchandise, sample sales are often used to move the surplus and unload the extra supply. These sales are usually advertised as offering sharply discounted items, but are the deals really as good as they say? Sometimes the discounts are less than spectacular, but if you use the right shopping strategies, you may be able to score a terrific deal on some great stuff. Here are a few tips on shopping sample sales to help you get the best bargain.

1. Evaluate the discount carefully.
Sample sales, especially the ones on the web like Gilt.com or Ruelala.com, are notorious for offering unbeatable prices on high-end merchandise. While these aren’t necessarily bogus claims, shoppers should be aware that retailers sometimes try to move their excess merchandise at prices that, while low, may not be as good as they make them out to be. One way of determining if the deal is really a steal, is to figure out how much the item would normally go for and compare it to the offered discount. If the discounted price is no more than 50 percent of the suggested retail price, then you’re getting a good deal.

2. Know what constitutes a real sample.
True samples are usually prototypes from manufacturers or designers. They aren’t necessarily the same thing as surplus or overstock merchandise. If you’re buying a true sample, you stand a much better chance of getting a great deal.

3. Check for any imperfections.
This applies to sample sales you find in stores or warehouses. Many places will offer discounted items (particularly clothing items) that have slight or moderate imperfections. These items should be properly marked with an identifying tag that says something like “imperfect” or “defect” and notes the details of the imperfection. These imperfections could be superficial, like a seam that isn’t completely straight, but they could also involve something that could potentially affect the item’s functionality. If you find an imperfection that isn’t marked, don’t be shy about asking the merchant to give you a break on the price, but don’t be pushy about it either.

4. Sizes may not be accurate.
Garments that are true samples (see above) are often not true to size. This is because real samples have been tailored to a specific model’s sizes. The inseam may be a little long, the waist may be cut a little narrower or the neckline may be slightly deeper, and so on. Always try the sample on and if it needs altering, consider the cost of alterations into the price to see if the deal is really worth it.

5. Don’t be tempted by urges to “Buy NOW While Supplies Last!” online.
Web sales can’t rely on impulse buying the same way a physical store can. When shoppers are in the store, they can see the item in person, touch it and hold it in their hands. Researchers have claimed that the ability to see and pick up an item increases a shopper’s tendency to purchase that item. With web sales, advertisers have to be a little more strategic if they want shoppers to click the “add to cart” button. The most common way to do this is by getting you to sign up for email offers or exclusive discount mailing lists. Once you do that, your inbox may be bombarded by “limited time offers” and urges to buy quickly. Resist the temptation to buy right away, even if the items are going fast. Ask yourself if you really want the item and if the price is really that great.

6. Delaying gratification can save you more money.
While we’re on the subject of resisting the urge to buy right away, it should be noted that web sales are generally better the closer an item gets to being out of stock or the closer it gets to the end of a season. You can sometimes save an additional 10, 15 or even 20 percent if you shop during the sale’s final hours. Keep an eye out for keywords like “blowout,” “inventory clearance,” “year end sale” and “final sale.” This applies to just about any retail store, not just sample sales, so it’s worth noting.

Do you have any other tips for shopping sample sales? If so, what’s the best deal you’ve found? Let me know in the comments!

How Do Americans Spend Their Money?

coinsAs another tax season has come and gone, many Americans are already planning on how they’ll spend their hard-earned tax refunds. From planning family vacations to funding home improvement projects to paying off debt, there are numerous ways one could put their refund to good use. Just out of curiosity, I did a little research on just what the most common ways are for people to spend their tax refunds. Here’s what I found:

According to data from the National Retail Federation, the two most common ways for Americans to use their 2011 tax refunds were putting it into savings (42.1 percent) and using it to pay down debt (41.9 percent).

The third most common way for Americans to spend their tax refunds in 2011 was to use it for everyday expenses (28.7 percent). Following that, 13.2 percent of Americans used their refunds to pay for major purchases, 11.9 percent used it for vacations and 6.7 percent listed “other” for their choice.

Compared to the year prior, more people used their tax refunds to pay for everyday expenses – the share for that segment was 28.8 percent in 2010. The number for people choosing to save their refunds also increased from 40.3 percent in 2010. Less Americans are using their refunds to pay down debt. The figure was 43.9 percent in 2010.

On a related note, it has been estimated that the average American purchases nearly $2,600 worth of goods and services every month and the average tax refund amount in 2012 was $2,803 – down from 2011′s average of $2,913.

Want a few ideas on how to spend your tax refund? Here’s a look at some of the things Americans love to spend money on, according to info from the U.S. Bureau of Economic Analysis. Some of these figures might surprise you!

Average Monthly Spending for Americans:

$95.43 – Clothing and Footwear
$79.97 – Pharmaceutical and Other Medical Products
$137.63 – Groceries
$51.90 – Televisions
$23.44 – Gambling
$27.63 – Alcoholic Beverages for Home Consumption
$25.81 – Games, Toys and Hobbies
$94.45 – Recreation Services
$130.83 – Purchased Meals and Beverages
$450.16 – Household Utilities
$410.48 – Healthcare

Considering becoming a mystery shopper? Read this first.

young woman shoppingHave you heard of “mystery shopping?” It’s a service where companies hire qualified people to “shop” at a designated place and report back about their experience. Here’s how the Mystery Shopping Providers Association (MSPA) explains it:

“A mystery shopper is a person who visits an establishment (typically a retail store, bank, restaurant or other such places where the public does business) for the purpose of observing and measuring customer service, product quality and the environment of the establishment in general.”

It’s a great way for companies to learn more about their employees, products, and how consumers view them. But there are benefits for the “shoppers” as well. Mystery shopping can be a fun way to make extra money, and it’s great for people who aren’t satisfied with a “desk job,” but it may not be for everyone.

Despite what you may have read on the Internet, mystery shopping is not a “get rich quick” scheme. It actually involves a lot of attention and dedication to gathering data. The MSPA explains that, contrary to popular belief, mystery shoppers do not get paid to shop – they get paid to gather information. Another common misconception about mystery shopping is that you get a ton of free stuff. While you may sometimes get a free meal, discounted merchandise or other similar benefits, mystery shoppers generally get paid a fixed amount – usually between $8 and $20 for a typical shopping job, but these amounts can vary greatly.

“Mystery shoppers know, before deciding to request or accept an assignment, what they will be paid,” according to the MSPA website.

The MSPA warns interested applicants to beware of organizations that promise lots of freebies and too-good-to-be-true offers. Also, the MSPA says that you should be “extremely leery” of any organization that asks you to pay to become a shopper. This is a big red flag that signals a scam. This is not the same as being asked to purchase an item or pay for a service as part of the shopping assignment. In those instances, the shopper is usually reimbursed.

So how does one become a mystery shopper? Start with the MSPA. They have a lot of valuable information to educate shoppers on the business and you can even search for available shopping assignments through their site. Learn more here: http://www.mysteryshop.org/shopper

Free Ways to Celebrate Mother’s Day

granfather and grandkids in kitchenMoms are special, and they deserve a special day. Unfortunately, your wallet is empty and the special Mom in your life needs a special gift. You need to come up with a way to show her how great she is, but your lack of cash is making it difficult. Don’t worry! There are lots of great ways to celebrate Mother’s Day without putting a strain on your bank account. Here are some ideas…

1. Give Mom a day off. It won’t cost you a dime to take on the duties your mother usually handles. From cooking dinner to running errands to cleaning the house, tell Mom that today is her day and she is free to do whatever she wants – you’ve got the rest covered!

2. Take the kids to the park so Mom can get some alone time. If you’ve got little ones in the house, you’re probably aware of how hard it is to have a moment alone to yourself. Even if you just give her an hour or two, Mom will probably appreciate the gesture more than you know!

3. Breakfast in bed is always a favorite. Surprise her with her favorite breakfast and let her enjoy it in the comfort of her bed. Don’t forget to do the dishes when she’s done!

4. Go for a picnic. Spring is a great time of year to picnic in the park. Ask Mom what she’d like to eat and then make it yourself. Pack everything up and head to a nice neighborhood park. Don’t forget the camera for a few special snapshots.

5. Visit a free local attraction or go to a free community event. People always seem to forget that being a tourist in your own town can be a lot of fun. Investigate your area’s free attractions and see if there’s something that Mom would enjoy.

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Budgeting Tips for Recent College Grads

Woman driving car

Graduating from college is truly one of life’s milestones. It is just unfortunate that so many young adults take this big step into adulthood without a financial plan. All too often, young grads are caught up in their career path and anticipated new earning power. Typically, instead of figuring out a strategy for the future, they are considering how to spend those first few paychecks. Of course, they should be able to splurge a bit on a few indulgences; after all, they worked hard for their money and deserve a little bit of fun spending. However, this reward syndrome can easily get way out of control.

Learning how to manage their finances is something that young adults must put into practice. It will set them up for a more stable financial future and in these uncertain times that is essential. Considering that so many college grads begin the new chapter of their lives in debt is another reason that developing “financial smarts” is a necessity. A January 2013 report from Forbes.com revealed that the average graduate’s student loan debt was $27,253. That reflects a 58% increase from 2005, when it was $17,233. In light of the saying, “people don’t plan to fail – they fail to plan,” here are some budgeting tips for those new sheepskin recipients:

Establish a Budget
Review your entire situation and your goals for the future. That is, record your salary after taxes and deduct all of your fixed and unfixed expenses, such as rent, insurance, car payments, loan payments, gym memberships, and utilities. Don’t forget to include estimates for groceries, transportation, clothing, entertainment, charitable, and church donations. Finally, after you have an idea of what is left over, if you don’t already have one, open a savings account and start a retirement fund. Do not despair if you can only put a few dollars in each-something is always better than nothing and your salary stands to increase over the years. If you need help getting started, there are several excellent online sites such as budgettracker.com and budgetsimple.com. Just look around for one that appeals to you.

Pay Cash
College grads receive a barrage of “Pre-Approved” unsolicited credit cards in the mail. Don’t let this bombardment of free credit flatter you; relying on credit will put you in dire financial straits in no time. Especially avoid store credit cards. Never fall for the line, “Well, did you know you could save 20% on your total purchase today if you sign up for our store’s credit card?” The fine print on these plans usually uncovers a laundry list of stipulations and steep fees for not paying off the monthly balance in full. You’ve been warned – it’s just not worth it.

Purchase with Care
Before plunking down $125 for that cute purse or snazzy jacket, reflect on how many hours you’d have to put in at work to earn that money. Perhaps it’s not really worth all that, hm? Look for sales and don’t turn your nose up at buying items second hand. Whatever it is, never buy it unless you absolutely love it.

Learn to Cook
A 2012 article in the “Christian Science Monitor” noted the following:

“The average American spends $232 per month eating meals prepared outside the home. With 18.2 meals eaten outside the home in an average month, these meals outside the home costs a person $12.75.”

For many young adults, this figure may be even higher.

Planning menus, buying groceries, preparing your own meals, and brown bagging it for lunch can save the average American close to $3,000 a year! Bet you can think of better ways to spend three grand rather than on soggy fries and a greasy burger!

Learning to cook for yourself has never been easier, thanks to the popularity of TV cooking shows and instructional videos online. The library is another excellent resource and has so many helpful choices for beginning cooks to choose from, such as “The Cook’s Illustrated” series and the “5 Ingredients or Less” cookbooks.

Save on Entertainment
The cost of an average date night looks like this:

$20 – 2 movie tickets
$40 to $80 – dinner for 2-hope no one wants popcorn and a drink, because that will tack on another $20!

Learn to make savvy entertainment choices that will help you stay on your budget. Consider free activities, matinees, and discount coupons. How about a walk on the beach, DVD from the library, and a picnic in the park or home cooked meal? Aren’t the “best things in life” free anyway?

Perhaps the most important thing for new college graduates to realize is that their former academic advisers will not be replaced by a team of consultants ready to lead them into life in the “real world.” Getting on the road to financial freedom is 100% up to them!

Yes You Can Have a Fabulous Wedding on a Budget!

bride and groom at sunsetIt’s kind of crazy isn’t it? As many couples embark on a new life as husband and wife, they are likely to need money for all sorts of things, including a down payment on a home. Why then, would they choose to spend thousands of dollars on a lavish wedding? In the old days, the father of the bride was responsible for the brunt of the financial burden generated by the “big day.” Lately, more young couples are paying for their own weddings and according to a Reuters report, the average cost is around $27,000*. The Reuters estimate includes the invitations, wedding gown, engagement ring, wedding planner, musical entertainment, rehearsal dinner, reception, florist, photographer, videographer, limousine, plus venues for the ceremony and the reception. Of course this does not include the bride’s “going away” outfit, honeymoon trousseau or the honeymoon itself.

*In larger metro areas such as New York and San Francisco, the findings revealed that the average wedding costs over 65 grand! 

Whether your personal situation demands it or you’d just prefer to spend money on something a bit more concrete such as a home purchase, there are loads of ways to reduce wedding expenses. Here are a few suggestions worth considering:

Wedding Dress
According to the financial website dailyfinance.com, most American brides spend around $1,100 on their wedding dress. That is not surprising considering that aside from college graduation, snagging their first real job, or childbirth, most women view their wedding as “the biggest day” of their lives. Surely even wedding cynics would agree that the bride is always the star of the show. However, who’s to say the star can’t do a little shopping around for that gown? Haven’t several film stars strolled down the red carpet in borrowed or previously worn “vintage” designs?

Alternatives to the traditional bridal boutique purchase include, purchasing one second hand, having one made, or tracking down a suitable gown in another department. The perfect gown could be lurking in the junior department or better women’s wear, among the prom dresses and ball gowns for a much more affordable price. How about the wedding day tradition of “something borrowed?” A relative or friend may have the perfect dress stowed away in the attic. In the interest of sustainability, why not recycle it and let it see “center stage” one more time?

Venue
This is where quite a bit of the wedding budget goes. In planning the ceremony and reception, try to have them in just one spot. This alone will save on time and transportation – so forget about the limo or horse-drawn carriage to the reception hall. Instead, stay put and laugh all the way to the bank. Most churches have large banquet halls for such occasions and others may have nice outdoor spaces that could accommodate a reception. Also, members of the clergy and others who officiate weddings are usually happy to conduct the ceremony wherever the couple chooses. Of course anyone choosing an outdoor venue must always have a “Plan B” just in case the weather does not cooperate.

Flowers
If the bride has her heart set on out of season blossoms, like gardenias in February, someone will be paying around triple for their heavenly scent. When considering the floral arrangements, choose flowers that are in-season, limit the selection to just one or two varieties, and use as much natural greenery as possible. Another consideration is to decorate with non-floral choices. Depending on the time of year or wedding theme, items such as these could be appropriate: pumpkins, apples, citrus fruits, pineapples, paper lanterns, Christmas balls, Easter eggs, Mardi Gras masks, balloons, or seashells. In many cultures, certain such things are associated with health, happiness, and prosperity for the newlyweds. Saving on floral arrangements that are so temporary anyway, will also allow the couple to exercise their creativity.

Food and Drink
Rather that having everything catered, it could be possible to fill-in a few gaps with special family favorites. Aunt Helen may be honored to contribute 30 dozen cheese straws, Uncle Henry too, could be over the moon about manning a carving station with his famous smoked ham. Give it some thought, before signing on 100% with a catering company. Shop around for the wedding cake as well. These days, many couples are going the cupcake route; it’s fun, easy, and your best friend may be willing to bake and freeze as many as you need. You can always hire a pro to work a little magic with a pastry bag and no one will be the wiser!

For beverages, skip the open bar and instead offer beer, wine, water, tea and soda. One upscale cocktail could be on hand, punch bowl style, rather that hiring a bartender to mix each drink individually.

Music
Although “DJ” doesn’t exactly have a romantic ring to it, the money saved on hiring just one individual to handle the music for the reception rather than a 5-piece band is substantial. The beauty of having a disc jockey allows the couple to celebrate to the original renditions of their favorite tunes. What band would be able to truly replicate classics by the likes of Rihanna, Kelly, Celine, Whitney, Barry, Justin, or Frank?  Exactly!

So now, the wheels should be turning and perhaps it has become evident that saving money on the big day only takes a wee bit of imagination and know-how. As the to-do list is created, always consider friends and family who possess special talents. For most, filling in as the official photographer or wedding planner would be an honor and maybe their gift to the new couple!

Other Posts You Might Enjoy

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Ways to Force Yourself to Save Money

pile of changeSaving money doesn’t come easily to a lot of people. It’s one thing to open a savings account, but it’s another thing entirely to have the discipline to contribute to it. Likewise, just because you add money to your savings doesn’t necessarily mean you’ll resist the temptation to spend it later. If you’re the type who has trouble saving money, here are a few tips to force you into the habit:

1. Sign up for automatic transfers.
This is probably the most effective method for saving money. Have your savings account linked to your checking account and arrange for a certain amount to be automatically drafted from one to the other every month. Whether it’s $10 or $100, the steady contributions will add up more quickly if you don’t have to think about it.

2. Commit to putting spare change into a jar every day.
Even if it’s only a few cents, make it a daily ritual to add change into a jar. Then, once a month, roll the change and take it to the bank. Some people like exchanging their spare coins for cash through one of those change counting machines you see in grocery stores. While these are great inventions, they aren’t very conducive to saving money. For one thing, these machines charge a service fee, so you’re not really getting all the money you saved. Secondly, you exchange the coins for cash – and having cash in your hand makes it very tempting to spend it. You’re better off just taking the coins directly to your bank and depositing them.

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Pros and Cons of Joint vs Separate Accounts for Couples

Couple in the parkWhen you share your life with someone, you share a lot of responsibility – particularly when it comes to finances. Sharing your money with someone also takes a certain amount of trust. But whether you choose to collectively pool your money together or keep it separate, the choice is ultimately a personal decision that should be made after carefully considering the pros and cons of each option.

The Benefits of Joint Accounts

One of the biggest benefits of sharing a joint account with your significant other, is the ability to compile your money together and (ideally) acquire a larger balance. Two incomes are better than one, after all. So if either of you needs to pay bills, go shopping for groceries or take care of unexpected car repairs, you’ll most likely have a broader base to withdraw from.

The other benefit involves interest. This applies mostly to savings accounts. With two people contributing instead of one, you are more likely to build a higher balance, which will accrue more interest. If you share an interest-bearing account with your significant other, and you’re both responsible about making regular contributions, you could likely double your savings in a shorter amount of time than if you were contributing to it alone.

Lastly, sharing a joint account with your special someone can be a great exercise in sharing your assets equally, which is something every couple has to practice in one way or another. By sharing your money, you’re ultimately saying that there is no “my money” or “your money.” The funds that are acquired are to be used equally. However, this is often one of the hardest aspects of joint accounts. Many couples have a hard time letting go of the idea that their money is “theirs.” This is especially true of couples in which one partner makes more than the other, which brings us to the biggest drawback of joint accounts – the temptation to control the funds.

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Low Cost Entertaining Ideas

family having picnic

Got a family reunion or other large gathering coming up? Why not plan a “potluck picnic,” where everyone brings something to share?

Looking for a way to entertain friends or family that won’t break the bank? Here are some simple solutions to throwing a great bash without spending too much cash!

1. BYO Wine Tasting Party

Have some oenophile friends? Consider throwing a wine tasting party in which each guest (or couple) brings a bottle of their favorite kind of wine to share with the group. This way, the bill for the bar isn’t all on you and you’ll have a great platform for conversation among your guests. Just buy some simple hors d’oeuvres or make your own to give the guests something to pair their wine with. Chopped fruit, wheat crackers, a selection of cheeses and some chocolate would do fine.

2. Potluck

Potlucks are great for large family gatherings, where there’s going to be a lot of people to feed. Instead of burdening the hosts with all the food responsibilities, a potluck encourages the guests to bring something to share. You could create a sign-up sheet ahead of time, so everyone knows what everyone else is bringing so there won’t be too much of a certain thing.

3. BYO Crafting Party

Do you have some friends who love arts and crafts or other DIY stuff? Why not host a laid-back gathering in which you and your guests bring materials to work on a craft project? This can be a fun way to learn new projects, while enjoying the company of friends or family. Invest in some basic supplies that everyone can share like glue, scissors, pencils, a protective tablecloth, etc., and you’re all set.

(See related post: “Fun, Cheap Child’s Birthday Party Ideas.”)

 

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Couponing for Beginners

key on top of cashThe coupon craze has swept across the country, with classes, clubs and organizations offering “how-to” lessons for those who want to save big bucks on their grocery bills. But if you don’t have time to attend these classes, or if they don’t offer one in your area, here’s a beginner’s guide to couponing to help you get started!

The Basics of Couponing:

  • Learn the Policies
  • Learn Where the Coupons Are
  • Perfect Your Timing

Couponing can be a great way to save money on your grocery bill. But without employing the right strategies, the monetary benefits can be quite underwhelming. To get started on the right track to couponing, you should first understand the basics.

First thing’s first: Learn the coupon policies of your local grocery stores. Most grocery chain stores post their coupon policies on their websites. As an example, see Harris Teeter’s coupon policy here.

Naturally, it may be difficult to memorize the policies of different stores, so printing the rules off and keeping them in a handy notebook or envelope is a good idea. In fact, most serious couponers keep this information along with their shopping lists and coupons in a well-organized binder or file box. Find some tips on organizing your coupons here:

After you’ve familiarized yourself with the policies, the next task is to find some coupons. It may sound old-fashioned, but the Sunday newspaper is still the best source out there for coupons. Some people choose to print their coupons online through a couponing website, which is also effective, but you usually have to download special software (most websites out there offer this for free) or sign up for an account on the manufacturer’s website.

The Sunday newspapers include inserts with lots of great coupons. In order to really make it worth your while, you’ll want to get a hold of several of these inserts. There are a couple of ways you can do this. You can either buy multiple Sunday papers or ask your friends or neighbors to save the coupons they don’t use.

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