Every week, we get solicitations for guest posts. 99% of them are dreadful. Some are even belligerent. None of them are from someone who’s actually been to our site.
Until now. Mr Credit Card runs Ask Mr Credit Card, and has good opinions. By which we mean he largely agrees with us, which makes sense, because our opinions are rooted in truth. We assume he’s a Brit, given that he doesn’t punctuate “Mr.” He also writes in the third person, like us…er, like the Control Your Cash authors. Anyhow, take it away, Mr Credit Card:
Today, Mr Credit Card is going to highlight some habits of a frugal shopper. Though he reviews and recommends the best credit cards, he also believes that unless you are frugal and pay all your bills on time and carry no debt, you have no business carrying a credit card. Here are some of his tips to pay less than “full retail” prices.
Everybody loves a good deal. But we shouldn’t buy stuff just because we can get a good deal or there’s a sale going on. Instead, we should only buy things we really need. But even then, you should always find ways to pay “below retail”.
1. Ignore the “original price” I can’t stand how most stores mark down prices. The big department stores are the worst here as they will always show an original price or a Manufacturer’s Suggested Retail Price that is much, much higher than the lowest price. Often I see 3 or even 4 prices, suggesting that it’s marked down several times. Who cares? Do you know what you can do with your “suggestions”? The only price that counts is the price you pay.
(Ed. Note: Any man who’s taken part in the following useless conversation, raise your hand: Q: “Honey, how much did that cost?” A: “I got it on sale.”)
2. Always Compare Prices Just because an item is marked down, that doesn’t mean it’s even a good deal. I found what I thought was a good deal on Amazon the other day. No other retailer I searched for had this cordless phone system at a lower price after tax and shipping. Even eBay was a bust. The next day, I found the phone system in Costco for almost half of what Amazon was selling it for. Research all your major purchases. This was the exception, as I usually find lower prices at Amazon or eBay than most retail stores, but you never really know. EBay
(Ed. Note: How do you capitalize “eBay”, assuming you do, when it starts a sentence? Curse this stupid phenomenon of brand names that start with lowercase letters and have medial capitals.)
is especially good for low-price, highly-marked up items like computer and electronic cables and accessories. I can always find a cell phone recharger for $5 that costs $20 at the dealer.
3. Always Ignore Credit Card Rewards Credit cards rewards are great, but only if you pay off your balance in full every month. Even then, you can still be tempted to spend more. One of the funnier lines in a movie I once saw was when the ditzy teenager was questioned as to whether her parents mind her spending so much on her credit card. She replies, “So what, they’re getting frequent flier miles.” That statement perfectly encapsulates the entire premise of reward cards. The idea is to get you to spend more in order to earn your reward, which is usually worth 2% or less than your purchase. If you can’t understand why this is a bad idea, you should never, ever have a reward card.
(Ed. Note: Full disclosure, your regular blogger has an American Express HiltonHHonors card. Only because it had no annual fee and I stayed in Hilton hotels a few times a month anyway. The card gives me free hotel stays without giving me incentive to change my behavior: if I don’t have enough points for a free stay at the $89 Hilton Garden Inn while the Holiday Inn Express across the street is renting rooms for $79, you can probably figure out where I’ll stay.)
4. Pinch Twenties, Not Pennies I suppose if you have unlimited time on your hands, you can make a career out of clipping coupons. In fact, there seem to be people who do just that. For the rest of us with a job and/or a life, you have to prioritize where you save money. Go for the big scores. Spend your time and effort saving on big things.
5. Make Sure You Are Not Just “Saving Money” On Something You Really Don’t Need The whole idea behind coupons is not to let you spend less, but to make you spend more. When you see a coupon for some product, ask yourself if it was something that you were going to purchase anyway. If it was, great. If not, forget it. Ask yourself if there aren’t less expensive alternatives. Perhaps you can get the same item for less on eBay or Craig’s List?
6. Always Compare Total Prices We live in a world with little price transparency. Book a rental car if you want to see how your bill quickly becomes twice the price of the rental itself. Telecommunications companies are close behind with all of their tax recovery charges. Hey, I pay taxes too! Can I subtract a “tax recovery fee” from your bill? Even a straightforward online purchase might include tax and shipping.
