5 online spending traps -- and how to avoid them
Attempts to save time or be more efficient can end up costing you money. Here are some habits that are likely to make you spend when you might not have otherwise.
Whether you’re buying a computer, a pair of shoes or booking a trip, shopping online offers convenience and can make it easy to find some great deals. However, there are some pitfalls to avoid when loading up your virtual shopping cart.
Be a smart online shopper by steering clear of these common mistakes:
1. Reading email offers first thing in the morning. Consider breakfast as prime-time marketing hour for retailers. If you have a habit of checking your email shortly after waking up, wait until later in the day to open emails from retailers or merchants advertising daily deals and last-minute buys. Subject line teasers like, “Save 50% today” could trigger a morning spending spree that leaves you with buyer’s remorse within a few hours.
2. Shopping daily deal sites regularly. Daily deal sites such as Groupon.com and LivingSocial.com are chock-full of deals on everything from dinner at gourmet restaurants to facials at the spa. However, purchasing such deeply-discounted offers week after week can put a dent in your budget -- and you may not even end up using the package before it expires. As such, make sure you read the fine print to learn about the terms and conditions of the offer. (Some services are only redeemable during certain days of the week.) Check for information about any options to upgrade, as well as gratuity expectations.
Calling the merchant before you purchase the deal is a good idea. They can tell you what their availability looks like in the next few weeks or explain the terms of the deal in more detail.
3. Storing payment information. Sites like Amazon.com and eBay.com make it easy to set up an account that stores your payment information so you can speed through the checkout process when you make a purchase. While this can save you time entering your credit card information for each purchase, you could wind up spending more than you budgeted for simply, because it’s easy to complete the purchase.
If having your payment information linked to your account is triggering shopping sprees, unlink the account and check out as a guest, so you can authorize your payment with every transaction.
4. Ignoring seller reviews and ratings. When you’re buying items through an independent merchant, take a few minutes to read reviews of both the product and the retailer. While your purchase may be protected by the website or by PayPal.com, you can reduce your chances of receiving damaged goods or defective items by checking to make sure the seller has a good reputation.
5. Clicking through deals on social networking websites. Whether you’ve spotted a great travel package on Twitter or just saw a deal on that laptop you’ve been eyeing in your Facebook News Feed, be wary of offered promoted on social networking platforms. Some URLs are links to fake websites that are designed to look like your favorite brand or retailer. As such, you could shop on an unsecure site that collects and uses your credit card and personal information. To vet offers, call the merchant to verify the deal, and complete your transaction over the phone.
More from U.S. News & World Report:
- 50 ways to improve your finances
- One man's journey from the NFL to Wall Street
- How Kickstarter can help you
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
ABOUT SMART SPENDING
LATEST BLOG POSTS
The Consumer Financial Protection Bureau's complaint database highlights the worst problems people have with collectors.
VIDEO ON MSN MONEY
BLOGS WE LIKE
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'