If youve ever been to an outlet mall, you know there are some super cheap finds.
I asked my friend.
Well, theyre only a dollar, so youhaveto buy them, she insisted.
Plus, we had bags full of ugly clothes wed only hate in a few months.
Dont get me wrong; Im not down on deal hunting.
When I shop for a new computer, I spend months tracking prices and waiting for a bargain.
When I was flat broke, I clipped grocery coupons every week.
Its one thing to save money you were alreadyplanningto spend.
And it becomes a problem when you overspend or buy things you dont even really want.
Generally, coupon culture doesnt make us financially savvy, it actually makes us spend more.
In fact, they can be pretty wasteful.
That wasnt a frugal purchase, that was a waste.
Another time, I was at Bed, Bath and Beyond, using their notorious 20% off coupon.
Oh this is a good one, the cashier said.
Its 20% off your entire purchase, not just one item.
Do you want to get more stuff?
I didnt, but I did.
So I looked around the store and bought some frivolous crap just for the sake of a good deal.
Coupons, deals, and discounts have that power.
They encourage you to consume by making you think youre actually being frugal.
That may very well be true for you, but in general, coupons make us spend-happy.
And theres data to back that up.
However, this finding doesnt account for causation.
Just because couponers spent more doesnt necessarily mean they spent morebecauseof the coupon.
So in a second study, the researchers analyzedcoupon-inducedspending.
They presented subjects with six different kinds of hand soap.
Four of the soaps were cheap; the other two were expensive.
Researchers gave half the participants a coupon and the other half nothing.
Consumers are generally price-sensitive and prefer lower-priced products, other things being equal.
But when coupons are available for expensive products, their likelihood of purchasing the expensive product increases.
According to another2012 study, coupons make us happier and more relaxed.
You might even call it a coupon high.
Buying the more expensive product is just one way coupons make us spend more, though.
Theresalso mental accounting to consider.
For example:
Jacking up prices then putting items on sale:Clothing brands do this a lot.
So youre getting the regular, everyday price, just with better advertising.
Expiring offers: Daily deal sites are a great example of this.
There are only a limited amount!
Time is running out!
You feel pressured to buy, and you feel special for getting something thats limited.
In reality, youre just shopping.
Like my Hulk pants, youve probably purchased something for no other reason than its just an excellent deal.
When we patrol deal sites, this is what were looking for.
Come on, were you actuallylookingto buy a quadcopter, or is it the savings that excites you?
I love a good deal.
Its about being a consumer.
That said, theres nothing wrong with shopping!
Sometimes you buy stuff you actually like.
Everyone loved them, and I have no regrets.
That awareness is everything.
Youre making the decisions.
Theres a difference between being a consumer and being a person who occasionally consumes.
Knowing how retailers manipulate you into spending more is a good start.
Calculate how much money and time you spent on all the junk youve thrown out.
Develop a personal should I buy this test tomake more conscious spending decisions.
Focus on your financial goals and prioritize them.
For a long time, deal hunting is what I thought it meant to be good with money.
Instead of focusing on negotiating or earning more money or investing, I saved.
Iwasnt a producer, I was a consumerobsessed with saving money and couponing and finding great deals.
And thats really the key in all of this:mindfulness.
Theres nothing inherently good or bad about money, shopping, or coupons.
ping the author at[email protected].
