Strategy One: Not buying it

I am addicted to a bargain. I have learned over the years that I can end up spending more money than I would have just because "It's on sale!!" Look how much I saved. No, look how much I spent. Yikes. I have learned to put prospective "buys" into three categories.

Category One: Items we have to have. We keep a white board in our house for items that we are going to need in the upcoming year. Examples: A new suit for my husband, a jacket for my oldest son who has outgrown his old one, a new backpack for Kindergarten. These are items we can't skimp on. The best strategy with this category is to know that you need it well in advance, so when the best deal pops up, you jump on it. We don't need the jacket until November, but it is on the white board in case I find on at a garage sale, or on a clearance rack. Know the full price if the item you want so when it does go on sale, you know exactly what you are saving.

Category Two: Items we could live without, but they would enhance our life- a wish list. If there is a great bargain, we would consider buying it. Examples would be Home dec items, a digital picture frame, maybe a Wii. The strategy in this category is to only allocate a certain portion of your budget to these items. After you have met that budget, don't even glance at the item- even if it's on sale. Unless someone hands it to you for free, of course, and then you can send them to me because I like free stuff.

Category Three: Items that will end up in a garage sale in two years. This is a tricky category, because the high that you get from buying something sometimes clouds your thinking. Really evaluate that item of clothing in your hand, or that extra picture frame that you want to buy. Will it bless your home or will it be passed on within a year or two? Will you love it or are you just buying it because it's cheap?

Sometimes I weigh my purchases with the value of a coupon. If I see something I like, but don't love, for $4, I think- Would I use a $4 coupon at the grocery store? Um, yes, that's a no-brainer. Put the item down. You just saved yourself $4. No clipping required.