Saving really is something you have to think about carefully in order for it to benefit you.

I noticed something quite interesting about it when I was grocery shopping with my fiancée. Every 2 weeks we go shopping, we have a list of things we want and need. As we’re walking down the isle picking up our items she sees an item that is neither something we need nor is it on the list. I really don’t recall what the item was and that’s irrelevant, but it was something we never had. I turned to her and asked, “Do we need that?” Her reply was, “No!” I then asked, “Do we even have it on our list?” Yet again the answer was, “No.”

Even though that item is on sale, how is it saving if you’re buying something you don’t need and never budgeted for? At the end of the day, you’re still going $x over your budget, and while psychologically you think you’re saving on the discounted item, you’re obviously not saying if you’re going over your budget. This is why merchants and manufacturers have sales — because it gets people to buy things they don’t otherwise need. When you have a budget of $10, then through sales, discounts, etc. you spend $8 and save a total of $2 — then you really understand the idea. That’s really saving money.

So the point of this story is that in order for you to truly save, you must stick to your list and budget. First, define your wants and needs, because they are completely different. Get coupons and discounts on things you need. Look for sales on things you want.

Those are my thoughts and conclusion based on this story. What are yours?