It’s well-known that retailers use tons of tricks to make us spend more in their stories. Statistically, on average a buyer overspends 50% at a store due to the spontaneous and impulsive purchasings, and those who go to the stores with prepared shopping lists still overspend by on average 30% if the shopping list is built with “let’s just buy it just in case”. This percentage is further multiplied by cross-shopping at different stores, as each adds an opportunity to grab something we do not really need in the first place. And the only those who plan ahead their meal for the next week or month have close to zero overspending as they know exactly what (and when) they are going to eat and by that they build the grocery shopping list for the required specific items only.
An average North American usually visits three to five grocery stores to find what s/he prefers, like specific brands of diary, meat, etc. It all ends up with annual overspending of 1.5 Trillion US dollars in the USA alone. Just think of this – if all that money that you’ve spent on things you didn’t really need (which often ends up in a garbage bin) you’d have kept in your pockets and would have invested these funds into your real needs like education, retirement or even much-needed vacation, how it would impact you and your family.
The problem is many of us often act without any plan or a budget and go to a grocery store for some small things (like “oh, milk is over…”) and start collecting more and more at the store just because “I’m here anyway…”, and kaboom, the cart is full, while the wallet is empty. Now, you have milk and a bunch of other stuff, and the next thought that strikes “well, I have so much stuff. Why don’t I throw a party… Then I need good beef for steaks, and the best one is at ‘X-Mart’!” The next day one goes there and the circle starts over (as well as stopping by at a Mexican restaurant for a burrito… and salad… and coffee…).
The point is, often one can avoid all this unnecessary spending by simply listing out real needs and required purchasing based on why you really need that, as well as strictly following the initial plan. Ultimately, planning and discipline result in reduced cross-shopping, which in turn results in reduced spending that eventually enables you to save more (money, time and stress level), and in the future, savings + investments exponentially expand one’s wealth.
So the question is do you care about your future?
Be wealthier,
RightBank Team