Jean Chatzky: Four Common Shopping Mistakes
Jean Chatzky is the editor-at-large
for Money Magazine and serves as AOL's
official Money Coach. She is the financial
editor for NBC's Today Show and often hosts
a series of money minutes, "Talking Money
with Jean Chatzky," on CNBC. Jean is a columnist
for Time Magazine and USA Weekend
magazine and is the author of four books,
including the best-seller, You Don't Have
to Be Rich. Her latest book is PAY
IT DOWN: From Debt to Wealth on $10 A Day.
Jean graduated from the University of Pennsylvania
with a BA in English. She was born in Michigan and
raised in Wisconsin, Indiana and West Virginia.
Now, Jean and her family call Westchester, New York,
home.
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Are you someone who'll go to several different grocery stores in order to save $7, but then blow $3,000 because you didn't do your homework when you bought a car? When the stakes are highest, we often make the most mistakes. Here are some of the most common mistakes people make when shopping for big-ticket items. Just being aware of them should help you avoid them.
- Being unprepared. Most people don't do enough prep work before they make big decisions. Car buyers who hate the process, for example, will just bite the bullet and buy something, rather than spend ten minutes on the Internet to find the exact dealer cost of the make and model they're looking for.
- Ignoring what others are thinking. Whether you're involved in buying a house, a car, or a stock -- or negotiating for a raise at work -- ask yourself what the person on the other side of the deal is thinking. It puts you in a much better negotiating position.
- Acting on impulse. Particularly when it comes to your money, it's important to make rational decisions. Do you really want to jump to buy the latest in computers, for example, just because they're flying out of the store at lightning speed and you're afraid they won't be there tomorrow? Or would you be better off figuring out how this particular machine fits into your life? Perhaps you don't need all that power and could save a bunch by buying last month's model.
- Butting heads. Most people head into negotiations convinced that what's good for the other side is automatically bad for them. In truth, there's often a middle ground that has benefits for both parties. Think about a car negotiation. Perhaps you've asked for a lower price than the salesman is able to cough up. What happens? You can -- and should -- try shopping around some more, but don't give up on the fact that this salesman may be able to satisfy your needs in some other way. Perhaps he can offer a terrific financing deal, or maybe he can throw in the first month or two on a lease for free.
© 2005 Jean Chatzky. For more Jean Chatzky articles, see www.jeanchatzky.com.
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