I’ve heard many people argue back and forth about the value of joining a warehouse club. Some people feel that they really save a lot of money by purchasing their household supplies and food in bulk amounts. If you ask them, they’ll tell you that their savings more than makes up for the annual membership fee.
On the other hand, some folks are adamant that there just isn’t that much money to be saved by shopping at wholesale warehouse clubs, and frugal families are just better off taking advantage of sales at their local supermarkets. Coupon-clipping and price-matching can lead to huge savings. Why pay for the privilege to shop at a store?
The reality is that wholesale clubs are great for some people, but not everyone. There are some families who really will benefit from the amenities that wholesale clubs offer. However, other families really won’t. Only by looking at your specific situation can you decide if your family should join a wholesale club.
Factors to consider when deciding if a wholesale club membership is right for you include…
How large is your family? Larger families will benefit much more from a membership at a wholesale club. Think about it for a second. If your family consists of you and your spouse, how long will it take you to use up that giant tub of mayonnaise? But, if you have a family of 5, you could go through that jumbo-sized container of condiments in no time.
What types of things are you planning to buy? If there is one product that you use a lot, a wholesale club membership may enable you to buy it at a much lower price than you normally could. Diapers, snack foods, and paper products are staples at most wholesale clubs.
Will you use the extra amenities the club offers? Many wholesale clubs offer travel agent services, insurance programs, and even custom eyeglass sales. If you can take advantage of these services and cut their expenses out of your budget somewhere else, you may be able to justify the cost of membership.
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It’s pretty common these days to find 0% APR credit cards. If obtaining a 0% card is on your mind, you would do well to take the time for careful research in comparing all the cards with their offers and benefits. Some companies offer 0% interest credit cards for only an introductory or trial period. Make sure you review the agreements and conditions carefully, reading the fine print. Each lender will have different terms and conditions. You’ll want to compare “apples to apples” and make certain that you are informed as to what the permanent rate each lender will charge. There is no doubt that 0% interest credit cards look tempting, but it is not in your best interest to enter an agreement if you will struggle later on to make the minimum payments because the permanent rate is high.
So what exactly are the benefits?
You don’t pay any interest.
Of course, the most obvious benefit of a 0% APR credit card is that you don’t pay any interest. Be forewarned though, that the majority of these cards require you to make all your payments on time and to pay the balance in full (after the initial grace period) or you will pay interest charges. Be very certain you read and understand the conditions of any card you decide to acquire.
Reward Programs
Many cards offer the opportunity to earn rewards or points for card use. Some of these include frequent flier miles, rebates, discounts on merchandise, or even fuel rewards. Again, be sure to consult the agreement for the terms and conditions of the rewards program.
If you are currently paying interest on your current card, you may wish to consider changing to 0% APR credit card. Some people like to consolidate all their credit cards onto one card and you can save a considerable amount of money if you are paying interest on several different card balances each month. However, to completely avoid paying interest charges, you would need to pay the balance off before the introductory period expires, or transfer the balance again to another 0% APR credit card. There are some things to consider, however, about balance transfers. Some banks will limit the amount of the balance that can be transferred. There may fees involved as well.
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As the end of the month approaches, do you find yourself wondering where all of your money went? You sat down at the first of the month and planned out a budget. You tried to make frugal choices. Nonetheless, you’re still faced with having more month than you have money. What went wrong?
If this all sounds familiar, don’t worry. You’re not alone. Many others face the same problem while they’re getting used to the world of budgeting. You’re starting off on the right foot, but then you’re forgetting the last step. After you’ve made plans for your money, you need to follow up and track where you’ve actually spend your money.
Make an appointment to sit down and analyze how you spent your money. You’ll need to save your receipts and write down any cash purchases over the course of the month. Then, break them each into the categories they belong in.
Now that you know where you spent your money, you can determine where you veered from your plan. Did you spend more than you thought you would on lunches at work? Maybe you succumbed to temptation while you were out with your girlfriends and splurged too much on new clothes. Finding out what caused you to blow your budget is the first step to fixing it.
If convenience purchases like work lunches are the culprit, you can find ways to plan ahead for your lunch. Maybe on Monday morning you didn’t have time to pack a lunch, so you gave up and went out with your co-workers. Try making your lunch before bedtime to make lunch planning easier.
For frugally-minded folks who are easily swayed by temptation from your friends, you may find that it’s easier to simply avoid the temptation. Stay away from malls if they are your weakness. Or, enlist a friend to help you stay on track with your spending. You can ask her to stop you if she sees you getting carried away.
In some cases, however, your plans may have just been unrealistic. Rising gas prices, for instance, could make it really easy to underestimate your fuel expenses for the month. You may find that you need to make adjustments to your budget each month to keep it in step with your actual expenses.
Ultimately, the way to find the leaks in your monthly budget is simply to go through your spending and add up everything you spend. Armed with the cold, hard facts about your spending, you’ll be able to fight your weaknesses and get them under control.
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