Bargain hunters beware!

With Circuit City going out of business, Macy’s closing 11 stores, and other retailers likely to do similar, going out business sales are everywhere.

If you are not careful, the financial pain of the retailer could become your pain.

Shopping isn’t a recreational activity that pays dividends. Those giant SALE signs can be a magnet for your attention.

Remember who comes first in your world – you! It is certainly in the retailer’s best interest that you buy something from them. The question is, is it in your best interest?

First, ask yourself this basic question – what do I really need?

Take a stroll thru your house and closet and ask yourself, do you really need anything? Is your house (and your rented storage facility) already packed to capacity? Think of all the things that you own that you are still paying for via your current credit card debt and ask yourself one big question. What happens to the fun of shopping when the credit card statement comes in the mail?

Develop new habits. Get a note pad and write down things that you need, as needs arises. For example, you stain your white blouse and it doesn’t come clean, so you need a new one. You notice your favorite black shoes have a hole in them, so you write, “black shoes” on the list. Once you have your list, and the money saved and in hand for your purchases, go on a buying trip. Notice I did not say shopping trip. Go in search of what you need.

Take shopping off your recreational activity list. Find a new way to fill your leisure time. Go to the park, the library, call a friend, or volunteer at the local soup kitchen. These are great ways to spend your day, and save your pocket book.

Giving to others in need adds a humbling perspective to your life. Wants and needs get real clear when you meet people who don’t know where their next meal is coming from. Try on rewards of the heart, and save your pocket book and your peace of mind along the way.

If you have the money in hand, do take the opportunity in these times to save money on things you need. Take one basic question with you on your buying trip. Do I love it? Do you beyond a shadow of a doubt, absolutely positively, love it? Not like it, do I love it? Do not buy until the object of your attention gets a resounding yes to this question. Without this criterion, your “bargain” will still be in your closet with the tags still on a year from now. Buying something you don’t need is no bargain.

To summarize:
Replace recreational shopping with a more pocket book friendly activity.
Don’t make a purchase until the money is in hand.
Keep a list of what you need, and go on a buying trip to find it.
Ask yourself, Do you really love it?
Enjoy the feeling of empowerment that comes when you pay cash!

May prosperity be yours,

Mackey McNeill, CPA/PFS IAR
President and CEO
Mackey Advisors
www.CultivatingProsperity.com
859-331-7755
Mackey@CultivatingProsperity.com