spending posts

Ever enter a store intending to buy only one thing, only to exit with an arm full of bags? Sure, you could be a shopaholic who lacks self-control and doesn't know how to budget, but, in actuality, it's probably not all your fault.

Store layouts are meant to confuse and disorient you, so that you actually do have that feeling of literally getting lost among the merchandise. Just finding the exit in some of these stores can be a pretty heady task and it's meant to feel that way. The people at the store want to keep you there as long as possible because they know that the longer you are there, the more likely more and more money is going to start leaving your wallet.

Knowing all that, we've complied the tricks stores use in their layouts to keep you spending money and will thereby hopefully inoculate you against temptation forever more.


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What will 2013 bring everyone? Will it be opportunity, wealth or change?

The new year will definitely be bringing a change in your household expenditures, with early predictions confirming that many household items will cost more.

Thanks to the drought this past summer that affected crops, the cost of many items at the grocery store will be getting more expensive, and our favourite technology items won't be getting cheaper.

For those individuals who like to plan ahead or prepare for the higher prices, here's a list of items that will be more expensive in 2013.

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As the New Year approaches and our personal financial coffers are suffering from post-Christmas stress, you may be wondering how in the world you can possibly save anything once the holiday bills start rolling in.

Our grandparents used a coin jar as a means to save money so why couldn't it work for us? When there isn't a lot left over from the paycheque to sock away, try this old-fashioned method of saving money in the New Year.

Are you financially better off today than you were a year ago?

The answer, of course, will vary from person to person, but for many Canadians it's a yes. According to a report compiled by Fusion Retail Analytics on behalf of Walmart Canada the average Canadian family had $82 more per month in spending power in July 2012 vs. July 2011.

Not convinced that this is a sign of a more optimistic future for the Canadian economy? Canada's second quarter GDP numbers exceeded the expectations of economists, however, it was far from being a slam dunk. CIBC World Markets economist Emmanuella Enenajor told CBC News that the numbers suggest the economy is doing okay. But don't start to grease your credit cards just yet -- even if you are managing to make your minimum payments. GDP has risen from 0.5% in the second quarter to 1.8%, so this means the economy remains steady.

If you've been guarding your spending over the past few years because of a fear that you'll wind up dirt poor, maybe it's your mindset that has you perpetually living from pay cheque to pay cheque. Indeed, sometimes being frugal is just counter-productive.

Here are eight ways being frugal can backfire on you.

Frugal Habits That Aren't Worth It

Inflation isn't a nice word to consumers.

It means an increase in the prices of goods and services and also means that consumers have less spending power.

The recent release of a report by Statistics Canada for the month of May shows that inflation fell to its lowest point in two years, offering Canadians a reason to smile. Or does it?

With the inflation rate at 1.2 per cent, its good news for those with floating rate mortgages and for lower prices on many products.

Gas prices dropped by 2.3 per cent, fresh vegetables are 7.1 per cent cheaper and electronic prices are 13 per cent less than a year ago. We have more money to spend and hopefully more money to save.

So why is this considered bad news?

There has been some talk recently of the psychological benefits of owning different kinds of stuff. Most of what I've seen focuses on wealthy people buying wealthy people stuff like classic cars and the New Jersey Nets. Social commentator and trend guru Malcolm Gladwell recently argued that there is a rationality behind spending money on things that make little or no economic sense. They bring us happiness and fulfillment even as they depreciate or bleed cash.

This got me thinking about the psychological benefits of spending money on one's self from time to time. For those of us not buying mint condition Porsche's or terrible basketball teams, the bulk of the bi-weekly pay check is spent before it's direct-deposited into our account. After paying the mortgage, contributing to RRSP's, and buying kid's cough medicine, it's possible -- maybe even common -- for many people to forget to splurge or think of themselves. But it's crucial for our well-being -- indeed, our psyche -- to pay a bit back to ourselves from time to time. I'm not suggesting you go crazy but do live a little once in awhile, it might make you feel like a new model of your former shell. Here are some frugal ways to spoil yourself:

Socialize
Studies have shown there are significant benefits associated with going out. For parents of young children, the financial focus is often to make ends meet, save for university, and figure out how to pay for this year's vacation. Is there a line left in that family budget for catching up with friends? Having grown-up fun? Although there can be many definitions of the latter, the point is this need not be expensive. Meet up for tea once a week with someone who makes you laugh. You need something social to look forward to that doesn't involve your kids - as much as I'm sure you love the perfect little monsters.

Will it be the summer of love for you?

Will you be hearing the strains of romantic songs everywhere you go?

For those of embarking on a summer romance, it's a heady, exciting time.

Exploring the city together, checking out new restaurants and seeing the latest movies - it's all good times in the early stages of a relationship.

But just because you two are dating, doesn't mean you need to spend it without consequences.

Don't freak out when the credit card bills come - do some advance planning, budget the pocket money and make sure you don't look like a dating cheapskate.

Here are some tips for dating on a budget:

There are a lot of ways to save money. You can buy certain items on the cheap that will work well for your purposes or you can get crafty and try to find a makeshift solution that will save you a few dollars. You also don't need to buy top-of-the-line everything – I honestly think the 80/20 Pareto principle applies to satisfaction as well: A lot of the time you can get 80 per cent of the same satisfaction you would by carefully spending only 20 per cent.

All that said, forget saving money. Sometimes you really do get what you pay for.

Canadians have begun to react to fears about record debt levels with household debt rising at its lowest rate in 15 years in November. But while growth has slowed significantly, it is yet to reverse the rising trend, meaning the record-breaking run of mounting debt continues.

The good news is that Canadians are starting to take better care of their finances. Benjamin Tal, deputy chief economist at CIBC, said household credit, once adjusted for inflation, rose by only 0.27 per cent in November. Meanwhile, data for the third quarter of last year showed that household credit rose at its slowest pace since 2001. The number of unpaid credit card bills has also stabilized at below one per cent.

Despite the improvement, Mr. Tal says there are still some concerning developments in Canada's debt situation.

Hello January! The bills are all in and it's time to pay up. Unfortunately for a lot of people, December's bad spending habits are probably still lingering, undermining efforts to save money.

Personally, I think we're doing ok in this household about being on financial lockdown but even I slipped off the wagon this week. During a very weak moment I decided to stop at the used CD store and visit the big, pretty (read: expensive) grocery store.