Research shows that prices can vary for all types of products; therefore it makes good sense to comparison shop before buying. Comparison shopping is especially beneficial when buying expensive items, items you purchase often, or items where the product quality or prices vary greatly. Through the use of advertisements, catalogs, telephone inquiries, or the Internet, comparison shopping is easy and can save you money.

For household goods and groceries, compare the unit price (such as the cost per ounce, pound or other unit of measurement that stores are required to post for every product). That’s the best way to compare cost, but there’s more to the equation than price. For example, by reading the labels of two cartoons of orange juice, you might find that the more expensive brand has 120% of the daily requirement of vitamin C, while the cheaper brand has no added vitamins. If nutrition is a consideration, the more expensive brand may be a better buy.

Buying large sizes can often save money. Usually, the unit price is less for larger containers, but not always. And before you buy in bulk, be sure you will actually use a bulk of the item. It can be a good idea to stock up on items you need when they are on sale. Again, just be sure you can use up what you buy before the expiration date arrives.

Look for generic brands or store brands of items where it really doesn’t make a difference. For example, some products have the same taste and texture, regardless of whether it’s a name brand or the store brand. The difference in price, however, can amount to as much as a 50 percent. Paper products, dairy products, and canned goods are also good examples of products that are practically identical, whether you buy generic or name brands.

If you use coupons, it is important to only use them for items you would ordinarily buy. Also, make sure you compare the price of a product including the discount with the coupon to the brand you normally buy or a generic brand. You might be surprised to find out that the name brand product is still more expensive, even with the coupon.

Do not assume that all supermarkets have the same prices. If you have a few chains in your area and you do not know which ones are least expensive, check them all out. Make a list of the ten or so products you buy most often, and do some comparison shopping. Often you will find a huge difference between chains, and, if you can save just five percent, it adds up to hundreds of dollars over the long run.

And try to limit or eliminate shopping at the corner convenience store for items that could be purchased less expensively on your weekly supermarket trips. Along those same lines, don’t assume that the grocery store is the best place to buy non-grocery items such as batteries and laundry detergent.

Comparison shopping is not just limited to products that you purchase. Research and compare companies that provide services, such as utilities, telephone, cable, and Internet. And don’t forget to research and compare companies, coverage, and costs for all forms of insurance.

This information came from one of MMI’s Journey to Financial Security series of programs. For more information about the series, visit CreditEducation.org.  

For more about comparison shopping, also read Be a smart Internet shopper and Jumping on the coupon bandwagon.

I’ve always had issues with the word save whose dictionary definition includes “To spend less by (save 25 percent).” You see, I’ve always thought that advertisers were just being clever when they tell you that you can “save big money” by buying their products. In fact, “you can’t save money at a sale” is one of my go-to soundbites. Thankfully, a recent article in Self magazine taught me how you actually can save money at a sale. From the November issue:

Make your virtual savings real
If you buy a $100 jacket on sale at 50 percent off and pay $50, have you saved $50? Of course not. (But you already knew that, didn’t you?) Yet many people succumb to the notion that “a bargain ain’t a bargain unless you buy it,” as if the savings from a discount were as tangible as money spent, says Peter Tufano, Ph.D., professor of financial management at Harvard Business School in Boston. To make your savings concrete, jot down the amount of the discount—$25 off your new Flip cam, for instance—then transfer that money directly into your savings account. This time, you’ve truly saved $25.

I wish I had thought of that! (Actually, that is how I feel every time I read the work of MP Dunleavey.)

I read a lot of magazine articles about money saving tips, but this tip stood out for a number of reasons:

-You’ll think before you buy. It seems as though things look better when they’re on sale. A dress you would never consider for $100 might look very attractive at $30. (70% off seems to be my breaking point—I lose all perspective!) With this new savings strategy, you are still committing to $100, so you’re likely to view things more realistically.

-You’re rewarded twice. Getting a great deal on something you love can be rewarding, but the comfort of knowing that you have something set aside for emergencies is valuable too. By stashing your savings, you’ll get the best of both worlds.

-The New Year will be off to a great start. There is a sale for every occasion and the upcoming holiday season is no exception. By making your virtual savings real, shoppers won’t be able to help saving. If you have trouble sticking to your stashing, try imagining how great it will be to start the New Year with savings instead of debt.

Speaking of debt, I should mention that this savings strategy only works if you’ve got the money to spend and save. As a general rule, charges should not be put on a credit card unless the balance can be paid in full when the monthly statement comes in. Remember, financing purchases—even if they’re on sale—is rarely a bargain.

So, it seems everyone is talking about couponing these days. Maybe it’s that I’m getting older, that I love a good bargain or the fact that I work at Money Management International, but I’ve jumped on the coupon bandwagon….and I’M SOLD.

The first step to successful couponing is to overcome those mental barriers. You may have a few of your own:

-Mom always told me it was a waste of time. Mother is always right, right? Wrong. The key is organization and finding just a few extra minutes to dedicate to saving. Just because it didn’t work for someone else doesn’t mean it won’t work for you.

-Coupons are only for the really expensive items. Sometimes, but the trick is to find name brand items when they are on sale. Using a coupon on a sale item equals savings.

-I have ZERO extra time. I’m hardly an expert, so I probably don’t spend nearly the time clipping as a real master. I’ve found that the key is just starting and starting small. You’ll find your comfort zone once you start saving.

-I don’t quite get how price matching works. I discovered that you can save money even when you don’t have a coupon. Start by collecting store flyers each week. I have found that the best savings are for beef, chicken, and pork. Take the flyers with you and simply ask your store to match the lowest advertised price. Just last week I saved over $6.00 on the price per pound match on a sirloin steak.

Check out these results!

When you’ve looked yourself in the mirror and made a dedication to saving, here are a few pointers to get started:

1. Research.
There are so many online resources out there for coupon trading, coupon selling, coupon printing, coupon clipping and coupon organizing. A couple of my favorites are CouponMom.com and Couponizer.com.

2. Take it one week at a time.
Push yourself to do a little more each week. The first week, just focus on one store flyer. The second week, plan a menu around sale items. Change can be tough and overwhelming, so start small.

3. Plan and organize.
Set aside some time to clip coupons, make a list and plan your meals each week. Get an expandable file folder or a binder with business card inserts and create categories to file your coupons.

4. Find a store that matches prices and/or doubles or triples coupons.
Price matching is where I’ve saved. Add a coupon on top of the price match and that’s a real savings.

Stay tuned. Good luck and happy saving!

Do you have any tips or tricks? What kind of savings have you seen? Tell us about it!