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  • The end of the financial year is five days away and that means five more days of the mid-year sales and it could either make or break the family budget.

  • Tammy from MyBudget joins us now. Tammy what's the best way to make mid-year sales work for us rather than against us?

  • Well retailers are really hoping that we'll see their sales and their specials and then we'll impulse buy.

  • But please resist. Even though they're a great way to save money on things we need – I emphasise on things that we need.

  • So think about the money that you may spend in the next six months, so birthdays, even Christmas or weddings that you've got coming up.

  • Money that you would ordinarily spend, you could take advantage of these sales, buy those gifts now and save yourself money.

  • But please try and avoid buying things that you don't actually need because it's going to be additional expense and extra clutter that adds up.

  • Now, what about big ticket items? There are often tremendous sales when it comes to white goods, computers, TV's, sometimes you get a good sale but it's attached to an interest free offer.

  • Could that ever be a good idea? Or is interest free loan always a bad idea?

  • Well if you've got cash in the bank, you could actually take advantage of those interest free deals by asking the retailer for a discount.

  • Because we all know the retailer is paying the finance company some sort of fee or percentage. So you could use this to your advantage

  • if you have the money in the bank and say 'can I get a discount,' instead of paying the finance company. Percentage so you could use that to your advantage

  • So sometimes they can be a good idea, it just really depends. But if you are going to take advantage of a buy now, pay later deal, be aware you are entering into a loan contract.

  • So make sure you can afford it and that you're going to be able to pay the purchase back within the interest free period.

  • Because that's where I see a lot of people getting into trouble. They don't actually make the repayments to actually pay it off within the interest free period, then they get slapped with a really high interest rate at the end.

  • And the thing that you mentioned earlier that gets us into trouble, impulse buying, how do we avoid an impulse buy when we see something that is a flashing 60% off? How do you make that mind-shift to perhaps not buy something that you don't need?

  • Well that's the thing, retailers set up their store so when we go in we feel good, we've got bright lights, it smells nice, there's balloons.

  • It's all there so they do make that impulse buy. So what I would suggest is walk away from the item. Do you really need another pair of black shoes?

  • Go and distract yourself and do something different, then go back and see how you feel about the item.

  • Also check, is it a legitimate discount. Jump on your phone, if you can buy it somewhere else.

  • You can get caught out thinking you've bought something at 60% off and really it was only a small discount anyway.

  • Tammy Barton from MyBudget, some good advice to not get stung there on the mid-year sales.

The end of the financial year is five days away and that means five more days of the mid-year sales and it could either make or break the family budget.

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Tammy on 9 News Adelaide - End of Financial Year Sales

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    Ji Yan posted on 2019/08/02
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