Now that summer is here do you find yourself shopping more? It’s the long days and great weather. You feel more energized, more optimistic, and more willing to go somewhere and spend money.

Retailers are counting on your great mood to maximize their bottom lines. They’re using sales to get you into the store and tricks of the trade to get you to buy more products than you had planned.

Let’s look at the grocery store.

You walk in to buy milk and bread, and you walk out with two full bags, having spent way more than you planned.

How did that happen? Let’s look at a common marketing scheme. Most grocery stores have products they call loss leaders. These are often common staples, like milk or bread. They know these bring you into the store, so they’re willing to take a loss knowing that you’ll buy something else that will make up the difference. How can they be so sure? Product placement is a science and could be an article in itself. Just know that you’ll be tempted to open your wallet.

Here’s another common marketing scheme. Most flyers and sales offer a better price for multiple quantities – you were only going to buy one, but then you saw the sticker offering 50% off the second item, so you bought two.  Some grocery stores offer mix and match sales, like 10 for $10 deals in the snacks, frozen food, or canned aisles. The store is obviously trying to get you to buy more than you intended, and because these deals are almost always on foods that will keep, you may feel that it doesn’t hurt to stock up. Does it work for the store? Yes, most people can’t pass up this type of deal.

What can you do about it? You can go to that grocery store, just buy the specific products you need, and leave.

Let’s look at other stores.

“Store Credit” is another trick to get you to spend money. At checkout, you may be offered an additional discount if you use store credit or even free financing for a specific period. They aren’t dong you any favors. They are counting on you having to make multiple payments with interest.

Furniture is a great example of free financing (no payment until 2015). You may be thinking you need a new bed, but with this offer you end up buying the bed with matching night stands and dressers because you have years to pay it off. Of course, the store is betting against you. They don’t believe you’ll actually pay it off on time, then they’ll collect interest going back to the date of purchase.

Let’s go back and take closer look at product placement. It’s not just for grocery stores. It’s no surprise that impulse items are always next to the register. These are small items that are usually reasonable in cost. While you are waiting in line, you find yourself putting one (or more) into your cart.  Maybe it’s the magazine you started to read while you waited, or maybe they have your favorite flavor of gum. These little items add up, leading you to spend more than you intended.

Bottom line: Shop with a plan or list and stick to it.  Don’t be tempted by multiple-item deals and bright displays. One way to stick to your list is to shop with cash. You can’t spend what you don’t bring with you.

With Financial Literacy month starting on Sunday, I want to help you to save more money. I figure that the best way to do that is by consulting the experts, and by experts I mean you. I know you have some tried and true money savings tips! As they say, “Only the foolish learn from experience – the wise learn from the experience of others.”

I love picking up tips from other people. This April, I want you to show off your savings expertise. Watch Facebook, LinkedIn or Twitter. I’ll be giving you different savings topics throughout the month and asking for your advice.

The first topic is food shopping. How do you save money on groceries? I’ll start the conversation by telling you how I do it.

• On Sunday, I sit down and make a list of what we need during the week. That includes a meal plan.

• When I plan my meals, I make sure that I plan some leftovers so I don’t have to cook every night. Sometimes, I even cook ahead on the weekends and freeze the extra food.  (Ordering take-out can be a downfall to my budget.)

• My meal planning also revolves around sales. That’s why I like doing meal planning on the weekend with the Sunday paper in front of me.

• Speaking of the Sunday paper… Yes, I do use coupons.  I don’t make myself crazy.  I cut them out of the weekend fliers and sometimes will even go to the manufacturer’s website to download them.

• Then, I calculate how much my plan will cost me. I compare my cost to my budget and make adjustments to my food plan if it looks too pricey.

• Finally, I shop for food with cash.  This stops me from over-spending. If I use my debit card, I find myself adding items to the cart that I hadn’t planned on buying.

What do you do to save money when you food shop?  Join the discussion.

Remember to follow us on Facebook, LinkedIn and Twitter to answer this and other questions throughout the month of April.  You could literally save someone else’s bacon, and learn some new tricks yourself!

If you read my Suggestions for Lowering Your Expenses, then you know that I want to lower my food spending.  I took the advice of several friends and colleagues and did a pantry purge.

A pantry purge is where you eat the food in your pantry and freezer instead of buying new. I don’t mean that you eat that and nothing else, or that you eat it in a big binge. It simply means that you don’t buy any processed or frozen foods until your panty and freezer are empty. You will purchase only perishable fresh fruit, vegetables, or dairy products.

I wasn’t always sure what to make with the foods I had on hand. So, I went to recipe sites online and entered the ingredients to see what came up.  Some were great and I will make those again… others were not so great.  I made some new kinds of homemade soups (that gave me extra to take for lunches), and I combined ingredients that I probably would not have otherwise.

Bottom line, I emptied out the food pantry as well as substantially cut my food spending. I learned that a little more planning ahead for the week’s meals, and less buying, is better for my budget.  Buying something just because it’s on sale is not better for my spending.  And yes, sticking to my list when in the store, and not impulse buying, was the biggest saver.

I was in Costco before Labor Day and they already had holiday displays. They seem to “deck the halls” earlier and earlier as each year passes. Personally, I am not thinking about the holidays this early, but it’s not a bad idea to think ahead.

How are you going to pay for your holiday purchases? Do you have savings set aside for this time of year?  If not, you are not alone.

In this economy, stores are lobbying for dollars and they want yours. They know that people are cutting back on credit card spending so they’re bringing back layaway plans.

What is a layaway plan? It’s a little like store credit, with one big exception: the store keeps your purchase until you’ve paid in full.

Here’s how it works.

• You pay a down payment or deposit to start the process
• You may have 30-90 days or a “must be paid by” date that coincides with a holiday
• Usually, you can pay as often as you like. Many people pay weekly (after they get paid themselves).
• As soon as your purchase is paid in full, you can take it home.

Why use a layaway plan? It may help you stay within budget. Credit cards make you feel like you have endless money to spend. If you can walk out of the store with that cashmere sweater, then it’s all paid for, right? Wrong! Some people won’t have their holiday credit card bills paid down until next spring. A layaway plan, on the other hand, never lets you forget that you’re paying installments.

What are the costs?

As with any installment payment plan, there will be fees.

• Many stores charge a fee for layaway. For example, Wal-Mart is charging a five dollar fee, and Best Buy charges a five percent fee.  These fees are typically non-refundable.
• In addition, there could be a cancellation fee if you change your mind.

Which retailers are offering layaway plans this year? I know of  T J Maxx, Marshalls, Toys R Us, Wal-Mart, K-Mart, and Best Buy. There are probably more.

You might be thinking, “Should I sign up for a layaway plan now or wait for the Black Friday sales?” That’s a question only you can answer. If you want to wait, start your own “layaway plan” by putting aside cash each payday. That way, you’ll have money for your purchase by Black Friday, whether it goes on sale, or not.

I know you don’t want to hear this, but the holidays are about 3 months away. Are you ready to do some shopping?

If the answer is “no”, then consider this:  retailers are bringing back layaway plans. They’ve noticed that people are spending less because money is tight and they want to keep that holiday cash flowing.

Layaway plans offer you the convenience of making payments over time so that you can budget your purchases.

What you should know about layaway plans:

1. You can’t take your purchase home with you until it is paid in full. The store keeps it until you make your final payment.
2. There is typically a small fee for the layaway plan.
3. If you change your mind there can be a cancellation fee as well.
4. Payment plans are typically 60-90 days.

Why not use your credit card instead? With a credit card you might pay more in interest and take longer to pay it off. You may also spend more because you can take your purchases home with you, giving you a satisfied (but very wrong) feeling that your work is done.

Layaway plans could be the better option if you cannot afford to pay for your purchase in one payment.

Isn’t it better to just wait for a sale?

What if it doesn’t go on sale? You have to decide if it’s better to buy now on layaway or wait until Black Friday when there may, or may not, be a lower price. If Black Friday is your choice, then you can create your own layaway plan by saving money each pay period so you have the cash to make the purchase. That way, whether it’s on sale or not, you can get that special gift.

Either way, the holidays are coming and that is the time of year that we tend to break our budgets.  Start early and spread out your purchases.

Are you in the market for a new or used car? How can you tell if you’re getting the best price?

You don’t want to pay more than the car is worth. Here are some tips to help you get started.

Myths Busted

People say to shop later in the month because the sales staff will sell at any price to meet their quotas. The truth? You don’t know how they calculate their quotas. Maybe it’s quarterly. Maybe the dealership tallies sales on the 3rd Friday of each month.  Maybe they’ve had a great month and don’t need to cut you a deal. You won’t get a good price by guessing the salesman’s income. Do your car research instead.

Research Your Car Online

You can research ahead of time if you’re looking for a specific make and model. Or, you can research online after the dealer makes his offer. One website is Overstock.com. You can select the car make and model, and all the options, and it will give you a suggested price that you can take to the dealer.  Another website is CarsDirect.com. There, you can select the make, model and your zip code. You can also try Kelly Blue Book and the Insurance Institute for Highway Safety. Both sites give good information on car repair and safety features for current makes and models.

Save Money on Financing

If you need financing, do the research ahead of time. Start by reviewing your credit and making any corrections that are necessary. Once your credit is handled, then it’s time to research for the best terms for your loan. Don’t just rely on the dealer for their financing. Check with your bank or credit union, and then other lenders, for the best terms.

Bottom line, do your research so you can negotiate with real up-to-date information. That way, you’ll know you’re getting the best deal.

Do you want to cut your spending?  Organize your belongings and stop to think before you buy.  How does that help? Read below

Organize your belongings

Have you ever made a purchase only to find out you have the exact same thing at home?  If you are organized – knowing what you have and where to find it –  you will save time and money.  Buying duplicates of things you already own is a waste of money.  I am talking about the items in your clothing closet, your food pantry, your linen closet, and your garage.

Stop to think: Do you really need it?

A great price doesn’t necessarily mean a great buy. Check your supplies at home before you buy. The same is true for coupons – don’t buy just because you have a coupon: make sure you need it, want it, and will use it in the immediate future.

Don’t panic about missing a great price. Chances are it will go on sale again in the future.

Be careful in warehouse clubs.  If you only need 1 of something, then just buy the one, and not the 12-pack.  If you aren’t going to use all 12 right away, you will have to find a spot to store the extras. Will you know where you stored them in a year, or will you be at the store buying another 12?

Stop to think: Are you buying for “someday” or for right now?

Be careful about buying for future fantasies.  If you have a dream of doing craft projects with your children, don’t buy the items now when you don’t have kids.  This someday-buying will make you spend more and cause you to have items that need to stored.  Buy things only when you need them. Even buying too far ahead for the holidays can be an issue.

Simply put, know what you have in your home and where to find it when you need it.  Don’t buy more than you need right now, regardless of the great price.  Living with less will mean more cash in your wallet.