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Is Everyday Life Costing You?


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Is Everyday Life Costing You?

  1. 1. Is Everyday Life Costing You? The Intelligent Consumer
  2. 2. Money Does not Discriminate  Affects the rich and poor  Must be managed appropriately to reach any financial goal  If you are not in control of your money your money is in control of you  …a Tool
  3. 3. black background, white stripes? or white background, black stripes?
  4. 4. Lack of Money Derives from…  Unemployment  Instability of employment  Emergencies  Costly but necessary expenses
  5. 5. Understand Money  We must understand what forces affect our money in order to gain control Inflation Money Management
  6. 6. How Are You Making It?  *Half of American shoppers visit discount stores each month.  *A third of these shoppers earn more than $50,000 per year. *Retail Forward
  7. 7. How do we define the Intelligent Consumer? The IC maintains a budget The IC looks at the total cost for each purchase The IC is conscious of their weaknesses The IC is aware of the tricks and traps used to make us spend The IC is motivated to build savings, reduce spending on expenses and control debt.
  8. 8. Is Every Day Life Costing You? What are expenses that are easy to not notice but can be expensive over the long run?
  9. 9. How to Lose Money Banking  You use ATMs outside of your bank’s network. Surcharge fees have risen in 2009. Average fee is now $2.22  You don’t have the appropriate checking account. If you just have basic checking needs, investigate free checking accounts  You bounce checks. These are among the highest fees a bank can charge you – on average costing you $29.58
  10. 10. High Cost of Laziness Not choosing the best rate for your savings account Not opening a retirement account (no IRA, no compound interest!!! Argh!) Not negotiating (or haggling) a deal Not mailing in rebates, using coupons, special deals, etc.
  11. 11. The Truth Is  Human beings are creatures of habit so it can be difficult to make daily financial decisions  Do we really do a cost/value ratio for every purchase we make?  At times we ignore what we should do to do what we want to do
  12. 12. Be Conscious Companies understand how to manipulate our spending habits to make us spend on things we don’t need.  Who is responsible?
  13. 13. How Companies Sell and Gain  Companies can predict human behavior with respect to our wallet  Companies can take advantage of our weaknesses, cravings, and vices.
  14. 14. What do they know? They know it’s difficult for a person to weigh the true value of something (new) without comparing it to something else.
  15. 15. Example  When the iPod was released to the public it initially sold for $600. Soon afterwards the was reduced to $400. Many claimed Apple had make mistake in overpricing the iPod at $600. But, was it really an error on their part?
  16. 16. Consumer Service Hall of Shame 20101. AOL 2. Bank of America 3. Comcast 4. Sprint Nextel 5. Capital One 6. Dish Network 7. Time Warner Cable 8. Wells Fargo 9. Citigroup‘s Citibank 10. HSBC *by MSN Money and Zogby International
  17. 17. What does smooth jazz or Sade have in common with grocery stores?
  18. 18. What is the Best deal? ☺Buy 2 , Get 1 Free ☻Buy for one $4.00
  19. 19. Buy 10 Yogurts for $5 Buy 10 Gatorade for $10
  20. 20. So You Know… It’s the objective of the store/market to create in the consumer a feeling of necessity that doesn’t exist, but once created, can be satisfied with one of its products.
  21. 21. Tactics to Make Us Spend  The position of products are changed regularly so that while we look for them, we find other products.  Usually, the most recent arrivals and most expensive products are placed at eye-level. Where would you expect to find Fruity Pebbles?
  22. 22. Pay Attention Usually, there is no object that makes reference to time. How many windows does Target have? Where is the clock in your local Vons or Ralphs? They don’t care if you don’t know how much time you’re spending in the market. 
  23. 23. Pay Attention For some reason people, when entering a store, tend to turn their head to the right. The supermarkets know this, and so display non- food items, like clothing, to this side. Supermarkets will offer items you normally would not expect or have the intention of buying in one.
  24. 24. Coupon…not always King Allows you to purchase something at a discounted price…but not always Other brands or stores could be cheaper What is the oz./cost ratio? Double coupons?
  25. 25. Be Prepared  Cut Coupons, for Pete’s Sake! (  Make a list of what you need before you shop (don’t buy on impulse)  Plan meals two weeks in advance and only buy what you need (to save gas and money)  Economize your meals. Usually prepared food is more expensive.
  26. 26. Lather Rinse, Don’t Repeat The reality is that you only have to shampoo once. According to CNN Money, the “rinse and repeat” instruction came about in the 1950s, when people washed their hair less often and used heavier, stickier hair products. Not only does “rinse and repeat” increase shampoo sales, it also increases sales of other hair products, since excessive washing can dry out hair, leading to the purchase of conditioners and other treatments
  27. 27. Change Your Oil Conventional wisdom says we should change our car’s oil between every 3,000 and 10,000 miles, but experts recommend changing oil every 5,000 miles or so. According to them, “it may be too soon for many people and too late for a few, but for the vast majority, 5,000-mile oil changes will help your engine last to a ripe old age.”
  28. 28. A Load of Money Most detergents show how much you’re supposed to use for a load of laundry. But Using too much detergent does not result in cleaner clothes. No matter how what the label says you should probably use less. Some people recommend using no more than half the marked amount. Most products are labeled in such a way that most consumers will unwittingly overdose, says Consumer Reports. You should only use as much as is necessary to get clothes clean, which is not as much as is marked on the package. 
  29. 29. Comparison Shopping     *