The Profile Of A Smart Shopper

Let's face it, we are a consumer society. Every hour of the day in every place imaginable we are bombarded with commercials advertizing one enticing new product or another. As competitive as we are, we want it all-whether its the video ipod to the iphone to the latest clothes, cars and consumer electronics. But it is also no secret that consumer debt is a national epidemic, with over 75% of American families now having a debt-to-income ratio of more than 25% (See debt-to-income ratio in this blog). The main culprit is Consumer Debt. Consumer debt consists of credit cards, departnment store cards, major appliances, furniture etc. In 2003, the Federal Reserve recorded that American consumer debt had topped $1.98 trillion dollars which is roughly more than $19000.00 per household. The total credit card debt alone stands at $735 billion, with the household card debt of those who carry balances estimated to average $12,000. Shopping smart is one of the ways to beat the debt epidemic caused by consumerism.

Consider the following if you are to get on track as a smart shopper.

Be a bargainer. Don't always settle for the face-value price. You might save 10-20%

Shop early. We all know the key shopping seasons-Thanksgiving, Christmas season and New Year's Day. Contrary to many views,prices are actually higher on those days because of demand. Shopping earlier can result in significant savings.

Alwaus use cash. Research has shown that shoppers spend 1/3 less when using cash as opposed to checks or plastic.

Avoid extended warranties. This is especially true with electronics. In most cases, 80% of warranties are never used (and that's why the store associates push so hard for you to get it)

Be alert as to the times when you're most likely to overspend. For most of us again its the holiday season. Keep a tight watch on your spending during these times and always use cash whenever possible.

Always shop alone. It has been proven that shopping while in the company others (especially kids) will induce you to shop more.

Always use a list. This prevents impulse shopping by keeping you focused on the essentials.

Don't go grocery shopping while hungry. According to Stacy Johnson of Money Management International, shopping while hungry will actually induce you to shop more than was originally planned.

Keith Diem, college professor with indepth know-how on money management, has compiled an excellent resource to help you save money on big and small items and will get you well on your way to a lifestyle change which will surely put you on the path to living debt-free living.