You Can Go Broke Saving Money

Growing up my mom constantly said "You can go broke saving money." I had no idea what she was talking about for most of my childhood, but it stuck with me. As I got older I started noticing this little saying seemed to become more frequent as I started becoming more aware of when my favorite stores were running a sale in the mall. Eventually, when my favorite pair of jeans were on sale for $25 but I did not have $25 to pay for them, the saying finally made sense.
Sales are great, especially if you have the money to take advanatage of the discounts. However, it does not matter how good of a deal it is if you do not have the money to buy the item right then. Sales are one of the traps that people fall into that result in high credit card balances. You see that patio table on sale for 25% off, but you do not have the cash to buy it outright. So you put it on the credit card promising yourself to pay it off next month. Next month comes around, and something more important needs to be paid off. So the balance stays on the credit card and accrues a little interest too.
I have a few rules for knowing when I should partake of a sale. First and foremost, do I have the extra money in my budget that month to buy the item? If yes, then ask yourself if this is something you really need or are you just attracted to the price. If you need it and have the money to buy it, then take advantage of your great timing and buy it! If it is a great deal, you do not have the money, but you know you will have to buy one next month then go ahead and do it. Just remember, everything is on sale at one time or another, but if you take advantage of all the sales you will not have any money left at the end of the month. You truly can go broke saving money! Thanks Mom for the valuable lesson!