There are lots of four letter words in the dictionary that makes us do abnormal things. Words like FREE and ZERO are two of the most powerful marketing words that I have shared with you in the past columns at Your Smart Money Moves. However, possibly the most powerful word when it comes to spending money is the word S-A- L-E. It just makes us plain old buy things we wouldn't normally do otherwise. Here are seven ways the word S-A- L-E changes the way you think about money.
1. Can I afford it? The word sale makes you remove the concept of do I need it to can I afford it? This small shift in thinking could push you over the edge to buy something simply because it now fits within the price range you had in mind.
2. I have no use for this - There are plenty of things that you own that you really never had any use for but you bought it because it was on sale. Remember that wine chiller from Brookstone you bought and now is a permanent dust collector? Case rested.
3. It's only credit - When you don't spend cash and you put it on credit it doesn't feel like real money. Even if you haven't checked your bank balance as of late, putting something on sale can trick your brain into thinking credit is a good idea. This is especially true when they offer you 20% off on the first purchase by opening a store card at the register.
4. My stuff is old anyway - There are items you have at home whether it is your phone, your TV, or just clothes in your closet. When things go on sale, you'll start convincing yourself that the items at home are really old and now that items are on sale they need replacing.
5. It's time for a vacation - Vacations should be financially planned in your budget and when you see a hotel go on sale in Vegas it tricks your brain into making a financial purchase you shouldn't be making.
6. The sign - You won't even notice that the world sale is often in bold red letters. SALE. This is a common practice done by stores to get it imprinted in your head that this sale won't last forever.
7. It doesn't know your priorities - when the word sale gets put it front of you, it doesn't care whether you need a new roof, a new car, or even need to save for your retirement. When items go on sale, it is always designed to get you to react NOW vs. LATER.
Be wary of the world S-A- L-E!
Ted Jenkin is a frequent guest columnist for the Wall Street Journal and Headline News Weekend Express. He is the co-CEO of oXYGen Financial. You can follow him on LinkedIn @ www.linkedin.com/in/theceoadvisor or on Twitter @tedjenkin.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.
If you would like to receive more information on making smart money moves for your future, be sure to contact us today!
