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Show#4 Millionaire or Bust – Shopping

June 30th, 2006 · podcasts

Topic of the Week
This week we talk about some of the psychology of shopping and how to save money by curbing your purchasing psychology.


Money Saving Tips
Money Saving Tip of the Week:
Check the prices at checkout. Watch the register and check receipts. A checker may scan an item too many times, the sale price may not come up or the price might be wrong.
Talli’s Tightwad Tip of the Week
Keep your receipts and check them against your credit card bill. Sometimes the amount is wrong or duplicated. Other times, when you return an item, they might miss a credit to your account.

Money Making Tip
Make back some of your spent money by using credit cards with bonuses. We’ll give you a few tips. One of the sites we mentioned on the show was:
citibank.com (no we get no commission)

Weekly Statistic
Almost 45% of working-age households are “at risk” of being unable to maintain their pre-retirement standard of living in retirement, according to the new National Retirement Risk Index. Younger households are particularly vulnerable, as are those with low incomes or no pensions. This is caused by a rapidly changing retirement landscape defined by a rising Social Security retirement age, a sharp decline in traditional pensions coupled with modest 401(k) balances, low savings rates, and longer lifespans. That number goes up to (49%) for Generation Xers born between 1965 and1972.

Tool of the Week
Shopping comparison sites:
shopping.yahoo.com
www.mysimon.com
www.shopper.com (tech purchases)

Financial Darwinism
These might sound common sense, but people do them…

Putting off saving…”until we can afford it.” Don’t do it. If you wait to save until you have free cash, you never will. There are always multiple things competing for your cash. Pay yourself first.

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2 responses so far ↓

  • 1 Bryan // Sep 4, 2006 at 4:42 pm

    In the same show, you talk about getting and using credit cards, yet your stat of the week tells of a poor saving rate.

    I like the premise of your show, but can’t reconcile “millionaire with credit cards”.

    When is your show on debt?

  • 2 David // Sep 4, 2006 at 8:25 pm

    Bryan,

    Having credit cards doesn’t make one a millionaire or make one broke. Having said that, many people do misuse credit cards. They’re primarily good as a means to pay for things that you will pay off at the end of the month, but don’t want to carry enough cash to pay for, such as televisions or plane tickets.

    I prefer that people use credit cards with points associated with them rather than ones without, since they actually earn something with them. However, spending extra on your credit card to get points would be counter to what we want to achieve.

    Many people misuse credit cards. We touched on credit card debt briefly in show #7, so you can see what we have on it there and mentioned debt it in the course of multiple shows. As for a show dedicated to debt, I agree with you that it needs to be covered and it will be in the next couple weeks. Stay tuned and we’ll cover it a little deeper.

    Thanks for listening and we appreciate your post.

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