Personal Finances: How much are you letting slip through the cracks?
I'm a frugal guy, and I'm addicted to getting a good deal. I can't say I cut coupons, exactly, but I've always wondered how much money you can save doing so. I do spend a few minutes a day checking various deal sites to see if there's anything I want, and I rarely make a big purchase (let's say over $200) without making sure that I am not getting ripped off.
Just the other day I picked up a subscription to The Economist for $40 for an entire year, an absolutely stellar buy given that the student rate is a whopping $99. Love getting extra value for my $.
But more and more frequently, I am amazed at the fact that people often pay full-price for items without batting an eye. I know people who buy the $4.99 version of The Economist at Barnes & Noble every single week and for whatever crazy reason will not spring for a subscription even though it's $150 a year list-price.
When I was in college, I was living on a budget, just like everyone else. I had a few campus jobs and good financial aid, so I generally had a good bit of disposable cash, but my checking account didn't really contain anything noteworthy. Often times, I would go shopping with some friends -- maybe to pick up some clothes, for example -- and I was always that guy who would try a few things on, think about it for a few minutes, and remember that I could get the same pair of jeans or shoes from a discount retailer online for half the price. Why on earth would I pay double? Beats me, but so many people do!
One friend I have in particular, who mind you does not come from a wealthy family by any stretch of the imagination, goes to Saks to buy jeans and is perfectly comfortable paying $200 for an item that can be bought online for $70. Maybe there is some inherent prestige with shopping at a place like Saks, but I'll be damned if I ever pay a premium that large to walk through the check-out area and "feel" like I'm a boss because I'm at a store like Saks buying some exorbitantly overpriced items.
Even when I was making a lot of money in the software business, I still always hunted for the best possible deal. It didn't take much time or effort, and it did save me a lot of money on a lot of different items. No matter how I try to rationalize it, I simply cannot understand why people overpay for items, yet there are always a thousand people at the Apple store and the Ralph Lauren store is always completely packed -- do any of these people know that you can buy all their crap online for less? Do they just not care?
Some of you guys out there make a lot of money. Do you watch your spending? Do you look for better deals when you're in the market for a particular item? Or is it simply more convenient to pay whatever price you find first, and then go on about your business?






Comments
people are just plain stupid
people are just plain stupid and are afraid to think with their brains - they love to be sheep
animalz: people are just
people are just plain stupid and are afraid to think with their brains - they love to be sheep
And this MUST be an entirely original thought from you. Kudos on your ground-breaking ruminations. You should write a book.
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DontMakeMeShortYou: animalz
people are just plain stupid and are afraid to think with their brains - they love to be sheep
And this MUST be an entirely original thought from you. Kudos on your ground-breaking ruminations. You should write a book.
thx mate you inspired me to actually write one!
pm me your name and details so i can sign a special copy for you
ppl b cray
ppl b cray
Frank Sinatra - "Alcohol may be man's worst enemy, but the bible says love your enemy."
What sites do you use for
What sites do you use for deals?
jmdude: What sites do you use
What sites do you use for deals?
SlickDeals and FatWallet.
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DonVon: jmdude: What sites
What sites do you use for deals?
SlickDeals and FatWallet.
thanks! will have a looksie at these
You're right, the majority of
You're right, the majority of people don't need to be paying full price, but for a few it does make sense to go to an on-site store. You can try on clothes, get opinions from sales staff, be able to look at things live, etc.
And to those who don't mind paying the premium, it's worth it for them to be able to buy the clothes when they want and wear it immediately rather than wait a few days or a week for shipping.
If you're making mid six figures, it's not worth spending all your free time bargaining for discounts that probably save you 50 bucks total over a span of an hour when you can use your free time in much better ways. I'd rather go in, get pampered by staff and get opinions, try clothes on immediately and wear it that night. To me that's worth paying an extra 20 bucks.
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jmdude: DonVon: jmdude: W
What sites do you use for deals?
SlickDeals and FatWallet.
thanks! will have a looksie at these
Enjoy. Be careful not to overspend because you start seeing so many awesome deals. Using these sites might require even more discipline than good ole' brick & mortar shopping.
"An intellectual is a man who takes more words than necessary to tell more than he knows."
- Dwight D. Eisenhower
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I find myself knowingly being
I find myself knowingly being that kind of person you're talking about, and wondering how to justify my actions to myself. Here's my take: the decisions we make with these kinds of purchases pit the marginal value of spending the extra time up front (signing up for the subscription, perusing deal sites, etc.) against our perceived WACC for our time. Time, like money, has a time value itself. When you make a choice of what to do with your time, you are forgoing the benefits that using that time for something else would provide. So, even as a student I didn't clip coupons - I saw my education as being worth far more than the couple hundred I could have saved each month, since I was betting that giving 100% to my education would pay far bigger dividends (even adjusted for PV) in the future.
Having said that, there is a human tendency to incorrectly overweigh the value of doing what we want to do now, now, rather than later, and I think this accounts for a large portion of the phenomena you are describing.
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IlliniProgrammer will make
IlliniProgrammer will make landing in 3......2.......1.....
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jmdude: DonVon: jmdude: W
What sites do you use for deals?
SlickDeals and FatWallet.
thanks! will have a looksie at these
FatWallet is great. Everyone should create and account and check this page (http://www.fatwallet.com/cash-back-shopping/) before they shop online. If you access some online stores through this referral page then you can get some % as cash-back on your purchases. Seriously, it's pretty awesome and as far as I can tell there are no strings attached. Also that link is just to the main cash-back referral page - I don't get anything in return for you clicking it.
Hi, Eric Stratton, rush chairman, damn glad to meet you.
Please don't share the
Please don't share the secrets to saving money. If everyone was as frugal as IP, there would be no economy. Our target companies would have smaller revenues, thus making our deals smaller, thus making our fees smaller, thus making our bonuses smaller. Just. Say. No.
"A man generally has two reasons for doing anything. One that sounds good, and the real one." - J.P. Morgan
BTbanker: Please don't share
Please don't share the secrets to saving money. If everyone was as frugal as IP, there would be no economy. Our target companies would have smaller revenues, thus making our deals smaller, thus making our fees smaller, thus making our bonuses smaller. Just. Say. No.
Not necessarily. Hang gliding and The Pony Bar would be booming!
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I just wish that people would
I just wish that people would actually use your and you're correctly. Aren't you guys paid to catch simple mistakes like that?
808: I find myself knowingly
"An intellectual is a man who takes more words than necessary to tell more than he knows."
- Dwight D. Eisenhower
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convenience and time are
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If you like slickdeals you
The rich stay rich because
"Don't be fooled, my game is mental." - Jay Z
After a rough experience in
See my other WSO blog posts
I am all for saving, within
SenhorFinance: After a rough
"An intellectual is a man who takes more words than necessary to tell more than he knows."
- Dwight D. Eisenhower
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I know exactly what you mean.
AndyLouis: convenience and
DonVon: 2. The "on a long
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Banking Resume
prospie: DonVon: 2. The "on
"An intellectual is a man who takes more words than necessary to tell more than he knows."
- Dwight D. Eisenhower
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I make money to spend money.
PetEng: I make money to spend
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I'm a sucker for a good
DonVon: prospie: DonVon:
And I think it's gonna be a long, long, time
SenhorFinance: Pecunia est
And I think it's gonna be a long, long, time
SenhorFinance: PetEng: I
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In The
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neilol: AndyLouis: convenie
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I agree with DonVon. Those
How were you able to renew
When in college I used to use
It is not about the title that you have, it is about how much money that you have.
If you fall in love with
Turbo leverage for capital explosion -- BD Capital
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peterg: How were you able to
Hi, Eric Stratton, rush chairman, damn glad to meet you.
I don't buy all that much
Nothing saves money like
The first rule I learned when