I’m sure everyone has heard the phrase, “Buy now, pay later.” Almost every major furniture and appliance company has this kind of offer. You can also often purchase electronic devices and all kinds of other gadgets this way. Well, I want to be a bit contrary here and suggest that when you make purchases, whether they are big or small, pay for them at the time of purchase rather than waiting to pay. Below are some reasons why I am suggesting this:
1. Who wants extra debt? Buy paying later you have taken on yet another debt that you will eventually have to pay. Wouldn’t you rather just pay for it and get it over with?
2. If you wait to make your purchase until you save up enough money, you will be more certain that it is really what you want. You are less likely to impulse buy if you discipline yourself to ensure you have the funds before making purchases.
3. By paying now you will eliminate the possibility of having to pay interest charges on your purchase.
4. If you decide to pay later, there is a chance that you may forget about it and not save an adequate amount of money in order to make the payments once they begin.
That being said, there is one situation where I think buying now and paying later could be financially beneficial. For instance, you buy a washer and dryer for $1000. The offer is to pay for the appliances in 2010 but you don’t have to pay interest. You currently have the money available to pay now, but since you won’t have to pay interest, you decide to invest the $1000 instead. Then, in 2010, you pay for your purchase in full, after having earned interest on your money through your investment. In my opinion, that would be the only time it would make sense to buy now and pay later when it comes to making small and medium-sized purchases.
We watched the movie 
the other night and I found it quite amusing. The main character, Rebecca Bloomwood, is absolutely in love with shopping. She can’t pass by a store window without seeing something that she wants to buy – and she does – and ends up racking up $16,000 in credit card debt. She knows she gets a sense of satisfaction from shopping. She feels happy when she buys the items and then afterwards she is discontent again, until she goes on her next shopping spree.
Costco is a wholesale store providing all sorts of things from groceries to television sets to engine oil. When it comes to buying groceries, I find that I can often get better deals at my local grocery store. Costco doesn’t carry the cheaper generic food brands, and you have to be willing to buy food in large quantities. Although buying bulk is often cheaper, it can be more expensive at times, so you need to watch.
Grocery stores want you to spend as much money as possible, so they deliberately display their inventory in such a way as to make you think you need to buy more! Not only do they want you to buy more, they use sophisticated tactics to entice you to buy the most expensive products. Keep these strategies in mind whenever you shop and you will get the most for your money.
So often when I go shopping I am tempted to buy clothes that are on sale, even if I am not sure I will ever actually wear them. At the time, it seems perfectly logical. The clothes are cheap!!! 🙂 What I have come to realize is that I still need to force myself to consider the same criteria for clearance items that I would use for regular priced items. I have to ask myself: Do I really like this item? Where would I wear it? What could I wear it with? Does the color suit me? Do I really need it? If I can satisfactorily answer all of the above, then it truly is a good deal. If not, then no matter how cheap the item is, it is actually expensive because it means I spent money on something I will never use.