Top 5 money mistakes when buying the sale

Christmas shopping is underway and next will be the Boxing Day sales, here's our tips to keep your spending in check.

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Boxing Day is just around the corner, and that’s when the word “sale” resurfaces to become a dirty little four letter word that can prevent you from reaching your money goals.

But unless you have the cash to pay for these sale items, you might be better off taking a shopping break altogether.

Women are said to be a little bit better than men at this.

It’s estimated that when it comes to Christmas shopping, more women 79 per cent in fact, will use cash or savings to fund their Christmas shopping compared to men at 70 per cent, according to financial product comparison website finder.com.au.

Men tend to be more prone to using credit cards and loans to finance their shopping habits, says finder.com.au.

For some shoppers who love a good fashion sale, the opportunity to rush into the big department stores, see word “sale” and buy a pair of $400 black pants for instance, is irresistible.

You might event justify this purchase because they were half price on sale…for $400.

But in truth, your closet is already full of black pants which, amazingly, all bare a remarkable resemblance to the pair you have just brought.

Here are our top five worst mistakes you can make when buying on sale:

1. Forgetting to diversify. Diversification applies not only to your share portfolio, but it also applies to shopping. Don’t buy 5 of one item simply because it’s on sale. 2. Not setting a budget. Always have in your mind an amount that you’re willing to part with at the checkout to avoid post purchase remorse. 3. Buying two-for-one. Two-for-one spending should be reserved for when you’re buying underwear and chocolate (one for you and… another one for you). Otherwise these  offers just lead to overspending. 4. Buying because it’s cheap. If it wasn’t on your to-buy-list, then you don’t need it, regardless of how cheap it is. This type of spending is futile to achieving your goals. 5. Forgetting why items go on sale. Some items are put on sale because they failed to attract a customer at their original price. If it’s in the $10 bin, it probably deserves to be there.
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3. Buying two-for-one. Two-for-one spending should be reserved for when you’re buying underwear and chocolate (one for you and… another one for you). Otherwise these offers just lead to overspending.

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