The 4 Secrets of Savvy Consumers

Right here’s my secret sauce to being a savvy shopper even in an period of inflation and rising value of residing.

In case you really feel it has gotten more durable to keep inside your price range attributable to inflation and rising costs, you’re not the one one. And with GST heading to 9% in a couple of months from now, what can a Singaporean shopper who’s attempting to save cash do to manage?

Right here’s the truth – whereas we customers haven’t any management over prices or how costs are set, we do have management over what we will do to rein in our bills as an alternative.

And the excellent news is, you’ll be able to nonetheless stretch your {dollars} once you learn to be a savvy shopper and inculcate smarter purchasing habits each day.

Right here’s my secret:

Funds Babe’s strategy

As a price range babe, I typically use a 4-pronged psychological framework earlier than making any purchases:

You see, I’ve learnt over time that being a savvy shopper isn’t nearly shopping for the least expensive merchandise. Low cost isn’t at all times finest, particularly if the standard is dangerous, since I find yourself spending much more cash in a while to switch it again and again.

Cease losing cash on flimsy $5 plastic organisational dish racks that retains breaking as a result of it can not maintain the burden of your plates, and purchase a greater high quality rack as an alternative even when it prices you barely extra.

As a substitute, let’s be a savvy shopper who is aware of to purchase solely what we’d like, whereas getting it at decrease costs each time attainable.

This could imply making use of time-limited reductions, bank card promotions and even bundled affords, in order that we pay much less for a similar merchandise than what it could have value us on different events. I personally like to purchase throughout a model’s birthday sale, as that’s typically once they run the largest reductions.

Let me stroll you thru how I exploit these 4 steps and present you ways highly effective they are often in serving to you stretch your {dollars} additional.

Step 1: Verify

Too many individuals make the error of shopping for one thing that they have already got. That’s why, earlier than I purchase something, I at all times do a verify first simply to be sure that I don’t have already got the merchandise mendacity round at dwelling.

Tempted by a sale in your favorite instantaneous espresso? Verify first to be sure you don’t have already got further packets at dwelling, in any other case, you may very nicely find yourself in a scenario the place you’ll be able to’t end all of the espresso earlier than its expiry date.

It may also be value doing an annual spring-cleaning of your storeroom, simply to be sure you know what’s inside…particularly these hidden proper behind your cabinets. I’ve discovered expired drinks and canned meals that we’ve forgotten about, and never solely does that harm my pockets, it doesn’t make me really feel nice both about losing meals.

Step 2: Calculate Utility

Let’s be trustworthy, in at present’s fashionable society and world of on-line purchasing, it may be powerful to remain sane and disciplined with our spending within the face of temptations and sale, sale, FINAL SALE!

We’re already being bombarded by adverts in every single place and anyplace. However savvy customers know higher than to provide in to temptation (though we should still have our moments of weak spot) and be smarter than to maintain falling for advertising gimmicks and traps.

One nice hack to make use of is to suppose when it comes to utility value somewhat than trying on the price ticket alone. I’ve beforehand written about the concept of utility cost here, however in abstract, how this works is that you just calculate by dividing the value of an merchandise towards the variety of occasions you’d use it.

For instance, a $70 high that’s worn each 2 weeks is a significantly better buy than a $30 costume that sits in my wardrobe accumulating mud, just because I can’t discover the suitable event to put on it out typically sufficient. I’ve been responsible of such white-elephant purchases on a number of events!

Go for stuff that provides you extra mileage in your greenback, as these are excessive in utility and practicality. The worth tag alone tells you nothing about what the merchandise is actually value in your life.

Step 3: Examine, examine, examine

Savvy consumers by no means pay extra after we can simply get the identical merchandise for much less. The identical canned drink, as an illustration, can value over twice as a lot once I purchase from a comfort retailer vs. a grocery store. To stretch your greenback additional and just remember to’re getting probably the most bang in your buck, domesticate a behavior of evaluating before you purchase. You may simply discover the identical factor for much less elsewhere!

So take your time to check costs throughout totally different retailers and even totally different platforms. You don’t at all times have to check manually by your self both, as one simple method is to download and use Price Kaki – a cellular app launched by CASE in 2019 – the place you’ll be able to examine costs of grocery store objects and hawker meals, together with time-sensitive promotions flagged out by fellow app customers.

Add the belongings you often purchase to your “purchasing listing” on the app and activate notifications so you’ll be able to even obtain alerts about worth fluctuations, so that you gained’t miss out when the objects in your listing grow to be cheaper.

Don’t scoff at saving 20 to 50 cents on a product, as a result of once you purchase an entire basket of groceries, the financial savings can actually add up.

Examine between home manufacturers and branded objects as nicely. Lately, home manufacturers have elevated their vary and high quality of merchandise. Take a look at my experiment here the place I shaved 30% off my grocery invoice by changing my cart with home manufacturers as an alternative!

Through the pandemic when rice costs had been hovering, I in contrast and located a local supermarket house brand version of my favourite Thai rice to be less expensive. After shopping for as soon as to strive, I’ve been hooked on the style and texture ever since and we’ve not gone again to the earlier manufacturers anymore. 

On one other occasion, I in contrast and located the Paw Patrol toy set my son wished was being offered at 3 totally different retail costs, on the occasion pop-up stall vs. the departmental retailer vs. a toy store in a heartland shopping center. Then, once I searched on-line, I even discovered the identical playset being offered for a fraction of its retail costs – some new, some preloved. In the long run, I purchased a preloved set on Carousell from a father whose son had outgrown the sequence, and spent solely 30% of what a model new set would have in any other case value me!

Tip: When you’ve confirmed (in step 2) that the merchandise is one thing you do want and can put to good use, store round for reductions and examine costs earlier than you determine on which store (or platform) you’ll be shopping for it from.

In case you’re open to second-hand objects as nicely, many individuals are blissful to promote it off for lowered costs on-line, and even give it away free on apps like Olio.

Over the 12 months, I’ve additionally in the reduction of on comfort prices each time I can. A few of these embrace:

• Making my very own espresso each morning, as an illustration, saves me the $7 that I used to spend on take-out espresso to gasoline my work day

  I preserve a foldable eco-bag in my purse in order that I don’t should pay an additional $0.10 for plastic baggage

  I attempt to take the general public transport each time attainable, somewhat than paying for taxi rides each time

Typically, you may discover within the midst of your comparisons that the higher deal lies in a pay as you go package deal or bundle, resembling for a gymnasium membership or a manicure package deal. Nevertheless, you need to be cautious of enormous prepayments, and suppose twice as a result of there may be the very actual probability that the service provider might not have the ability to service you till the top of your package deal.

Within the first half of 2023 alone, customers reportedly misplaced $302,205 in prepayments…a lot of which had been attributed to companies who wound up or disappeared midway!

Psst, do you know?

In Singapore, we're protected in your prepayments made to accredited renovation, spas and wellness companies below CaseTrust Schemes. Upon making prepayment to such CaseTrust accredited companies, you can be given a proof of safety containing your private particulars and the protected sum. Within the occasion of enterprise closure, you'll be able to then declare again the unused portion of the prepayment made.

Discover out extra about the prepayment protection schemes here, and see the list of CaseTrust accredited businesses here. 

Step 4: Purchase

Lastly, after you’ve (i) checked to be sure you don’t have already got the identical merchandise at dwelling, (ii) confirmed its utility worth and (iii) in contrast for the most effective worth, now you can cart out and pay.

However earlier than you pay, don’t neglect to make use of vouchers, low cost codes, affiliate codes, and even bank card reductions that may make it easier to shave extra {dollars} off your buy!

Conclusion: Inflation is actual, however we’re not helpless.

Inflation might have led to rising prices of residing, however that doesn’t imply that we can not adapt and grow to be smarter at how we spend our cash. Extra importantly, we will grow to be savvy customers and learn to stretch our bucks in such inflationary occasions.

What’s extra, over time, our wages will catch as much as inflation, particularly if we proceed to put money into ourselves and our profession to spice up our incomes energy.

By being good about methods to stretch your {dollars}, you too, is usually a savvy shopper and beat inflation.

Disclosure: This text is dropped at you in collaboration with the Shoppers Affiliation of Singapore (CASE) to assist Singaporeans stretch their {dollars} and overcome inflation.

Appreciated the cost-saving ideas right here? Take a look at CASE’s Facebook for extra!