How shopping smarter can make your money go further

Sales may be an opportunity to stretch your dollars... if you go in with a plan. 

Research by CommBank shows 94 per cent of Aussies say they have made changes to the way they shop to keep up with the cost of living. Three in five of us say we are keeping a closer eye out for discounts and rewards programs, while a third of us are shifting big purchases to time with major sales periods.

Source: CommBank

3 November 2024

How shopping smarter can make your money go further

CommBank’s personal finance expert, Jess Irvine, says smart shopping strategies can be a great way to score discounts on items you would otherwise pay full dollar for.

“Learning how to navigate sales and leverage customer recognition programs can mean you get everything on your list without blowing the budget,” says Jess. 

From homewares to fashion finds, here’s how to avoid overspending during sales, while maximising your savings. 

Timing is everything

The first step to making the most of sales is understanding timing, says Jess. “Retailers often have predictable sales cycles, such as back-to-school promotions, end-of-season clearances and holiday sales. Keep an eye on these periods and plan your purchases accordingly.” For instance, if you know a specific store tends to have a big sale in November (hello, Black Friday), hold off on buying until then. 

Also keep an eye out for flash sales from retailers. “Sign up for newsletters from your favourite retailers to stay in the loop,” says Irvine. “To keep from falling into the impulse-buy trap, make a wish list of items you genuinely want or need then, when that flash sale hits, you’ll be ready to pounce.

Focus on quality over quantity

During sales, it’s tempting to buy several discounted items. However, focusing on quality over quantity is a smarter approach. Before making a purchase, ask yourself if the item is something you genuinely need or will use regularly. 

“As a general rule of thumb,” says Jess, “if the first time it occurs to you to buy something is during a sales promotion, chances are you don’t actually need it.”

Irvine also suggests considering the ‘cost-per-use’ of your potential items. “Investing in higher-quality products – even if they cost a bit more – can save you money in the long run, as you can avoid frequent replacements.”

Stack discounts and rewards

There are plenty of stores that allow you to stack discounts, which means you can combine store sales with cash back offers and rewards programs.  

For example, the CommBank Yello program offers a range of fantastic deals from big brands – so don’t forget to check the CommBank app before you shop to ensure you’re taking full advantage of all the savings available.   

Use loyalty programs 

Many retailers have loyalty programs that reward frequent shoppers with points, exclusive discounts or member-only promotions. To make the most of these programs, sign up to ones that align with your shopping habits. Keep track of your points and expiration dates so you can redeem them strategically during sales. If you’re eyeing up larger item, consider saving your points until a sale event to maximise your discount, effectively reducing the item’s overall cost.

Irvine also says savvy shoppers can look at credit cards which offer rewards points. “Just be careful that you’re not tempted to overspend, and make sure the benefits you receive are worth any fees and charges you incur along the way.”

Be cautious of the “sales” mentality

Be mindful of the psychology behind sales. Retailers love to create a sense of urgency with phrases like “limited time only” or “while stocks last.” These tactics can lead to impulse buys that you might regret later. 

Irvine warms scammers are also rife during sales periods, including with fake shopping websites and so-called ‘phishing’ emails, texts and calls.

“Scammers will try to tick-tack off the sense of urgency of sales periods. Shopping via a retailer’s official app can be a good strategy to minimise the risk of falling prey to a ‘fake’ shopping website. Shop directly via a retailer’s legitimate website and be wary of clicking links in emails. If in doubt, remember to ‘stop, check and reject’.

For more smart savings strategies like these, head to the Brighter hub.

To access budget tools in the CommBank app, open a CommBank Everyday account today.  

Things you should know

This article provides general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as personal financial product advice. The views expressed by contributors are their own and don’t necessarily reflect the views of CBA. As the information has been provided without considering your objectives, financial situation or needs, you should, before acting on this information, consider the relevant Product Disclosure Statement and Terms and Conditions, and whether the product is appropriate to your circumstances. You should also consider whether seeking independent professional legal, tax and financial advice is necessary. Every effort has been taken to ensure the information was correct as at the time of printing but it may be subject to change. No part of the editorial contents may be reproduced or copied in any form without the prior permission and acknowledgement of CBA.