Whether you’re recovering from filing bankruptcy or just trying to save money like the rest of us, you’re probably familiar with basic budgeting techniques: know what you make, examine how you spend your money, spend less than you earn, etc.

But are you doing it right?

Examine these tested money-saving tips:

• Know the sellers’ tricks. If you’ve ever experienced that rush of excitement when you see a really good sale price or thrilling new item you didn’t know about, you’ve made a retailer somewhere proud. We all love the feeling of “discovering” a good buy, but keep in mind that vendors want to sell to you. Tricks like rearranging merchandise often to create a sense of urgency and creating hype around a sale are classic. Don’t let the artificial thrill of limited-time offers trick you into making purchases you otherwise wouldn’t.
• Save first, then spend. Studies have found that people tend to part with “found money” more quickly than hard-earned dollars. So next time you get a check from Gramps or find a ten in the pocket of last winter’s coat, put it in the bank for a while. It seems that after such money has spent time in a savings accounts, we tend to be less willing to part with it.
• Don’t ignore the big picture. Hopefully, you’re diligent about comparing per-unit prices at the grocery store, buying generic when possible and taking advantage of sales on necessities to pinch pennies. But are you as careful with bigger-ticket items? Make sure you’re crunching the numbers each time you plan to make a major purchase like a new appliance, a family vacation or a car. And keep in mind that the up-front cost is only one aspect: consider likelihood of repairs, repair costs, maintenance/energy costs, etc.
• Shop with cash. It’s not surprising to learn that people tend to spend more money when no cash leaves their wallets – in other words, we drop more money when we shop with plastic. So use cash to limit yourself: decide what your budget is for a shopping trip and leave your credit cards at home. Even minor impulse buys can add up over time.
• Compare prices wisely. A study of consumer behavior found that when deciding between choices of varying prices, we tend to practice what’s called “extremeness aversion.” If you see a really high-priced item and a really low-priced item, you’ll tend to go with the one in the middle. Call it the Goldilocks Effect. You can avoid this by researching what you want to buy ahead of time, deciding on features and a price range that suits you and sticking with that when you shop.

Tags: bankruptcy, saving money