LIFESTYLE
How to refine shopping
strategies in a recession
By Eve Menezes Cunningham
I
n spite of all the expectations of people consumer, your current buying strategy might space and get more enjoyment from what
tightening their spending and reigning in be absolutely fine. you purchase, taking a look at the way you
their personal debt, recent statistics show But if you’d like to have more money, more habitually part with your money can help you
that we’re spending as much as ever. shift things for good.
If you’re looking to pay off debts or save up,
“It’s very easy to
Where are you most likely to overspend? Do
understanding your own shopping strategies you avoid expensive shops only to buy all sorts
will help you change the way you shop and feel that if you of things you don’t need when you do your
create healthy spending habits that could serve
don’t splash out
grocery shopping?
you well for the rest of your life. Are their certain times that make you
“Reclaim your wallet,” says organisational
on this huge list
especially prone to comfort shopping? (e.g.
coach, Stephanie LH Calahan. “Understand when you’re feeling lonely / have had a rough
your spending patterns. If you go out a lot, set
of products, you
day at work etc.) What behaviour could replace
a limit and stick to it. Rather than making big your autopilot shop? Is there a park you could
purchases, select items that will help you make
aren’t doing the
walk in instead? Might a swim help you feel
money. Sell items you no longer use. While they better?
may not hold value for you anymore, your sale best for your baby.” Do you buy clothes that seem like a bargain
would be a good deal for someone else.”
Liat
only to find that you never wear them? Are you
Bearing in mind that every behaviour has worried that your children have no idea what
a positive intention, take some time to gently “No” sounds like when you now actually mean
figure out what need your overspending is it?
trying to fill for you. Have you got into the habit of being lured by
the latest model rather than waiting to see what
What’s your shopping strategy? you actually need?
If you’re happy with your bank balances, don’t At what point do you buy things? Are you
have a problem with clutter and enjoy shopping the kind of person who recognises when
when something’s needed but otherwise don’t something’s running out / coming to the end,
waste too much time thinking about being a researches the possibilities now on the market,
Bigger purchases
For most people, buying a home is the biggest purchase they’ll ever make. “Always seek independent advice from an advisor. We assess market
“I have seen a lot of purchases over the last three months. At least 50% of
conditions and keep an eye on different products and withdrawals to
my business has been from first time buyers which is very encouraging as
make sure that clients benefit from the best rates possible to suit their
it shows the market is starting to turn,” says Lisa Hockley, an Independent
individual needs.
Mortgage Broker. “It is definitely a buyer’s market at present. I would advise potential buyers to
“Clients are not really remortgaging very much as a rule. A lot of customers
make sure their finances are in place before making an offer on a property.
are sitting on the standard variable rate of their lender and choosing to save
Think what price you would want to pay as a maximum and go in a lot lower
money every month but this will change when interest rates start to go back
as the estate agent will negotiate a higher offer for their vendor. Property
up. About 5% of customers chose to fix their interest rate about one month
prices have bottomed out and although it is a little too early to tell, there are
ago when fixed rate pricing started to increase.
early signs of prices starting to increase already. Although house prices will
not increase as rapidly as we have seen in the previous years prior to the
“With the present low interest rate environment, I’d advise people to overpay
credit crunch there is always a high demand in the UK for housing due to our
on their mortgages as much as possible. This will mean they will benefit from
housing shortage.
the low interest rates and repay their mortgage much earlier than anticipated.
By overpaying, people do not get used to the surplus monies available and
“An alternative to moving may be to consider building an extension, saving on
when rates go back up it will not be too much of a shock as they can then
moving costs and upheaval but at the same time improving the current family
stop the overpayments.
home and adding value to the property long term.”
18 | Autumn 2009 - rapport
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