Should you buy just because there is a discount season?
Flash sales are a rage around the world. Many major brands offer heavy discounts to lure customers to buy their products. Consumers have limited time to think. If they delay, chances are that the product may go out of shelf. In this mad rush, consumers can fail to distinguish between their ‘want’ and ‘need’.
Apr 2023
3 mins read
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While it is wise to seal the deal when prices have dropped substantially, we need to ascertain if we truly need these products.
It is best to avoid getting tempted to buy a product merely to put in your wardrobe and never to be used, which you got only because it seemed nice at the store. Spending a fortune just to regret it afterward can turn your household budget upside down. So make careful choices. Here are a few checklists before you swipe your card.
Track your spend
Tracking your expenditure is one of the most important aspects of making your budget work for you. You can't determine when you have overspent if you don't know how much you've spent each month. Even minor expenses can add up. Downloading an app to track costs on your phone may be easier. It can also assist you in becoming more mindful of what you spend and where you spend it.
Don’t rush
It’s important to understand that during sales seasons, businesses are mostly looking to get rid of old inventory. Imagine you buy a mobile in January that was heavily discounted since it was manufactured in the previous year. If you are certain that you will be using it for a long time, say 5 years (assuming it continues to function well) you may have got a decent deal. However, if you plan to sell your mobile in 2 years for another model, you will get a very low resale value for an old, discounted model and your purchase will not be helpful.
Check warranty
An extended warranty helps by providing coverage beyond the original warranty tenure. Having an extended warranty saves you money in the long run. The most important aspect of an extended warranty is peace of mind which assures owners that any needed repairs will be covered. Make sure to visit the authorized Service Center for repair services and seek support on the spare parts and backups.
Summing up
Beware of discounts as not all deals on sale are excellent for you since during sales seasons retailers are generally aiming to clear old stock. Retailers frequently purchase things particularly to sell during end-of-season promotions in order to maximise foot traffic to their store or website. Even at the so-called reduced price, the store may make a good profit. This is especially true for products sold under the retailer's private label or under a new name. Therefore, buy only when there is need and not desire.
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PGIM India Asset Management Private Limited
(CIN - U74900MH2008FTC187029)
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This is an Investor Education and Awareness Initiative by PGIM India Mutual Fund.
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MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Read more
All the Mutual Fund investors have to go through a one-time KYC (Know Your Customers) process. Investor should deal only with the Registered Mutual Funds (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit https://www.pgimindiamf.com/ieid.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Read more
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