How to make the most of shopping, from comparison to cashback

With lockdowns lifted around Australia, more Australians can return to shopping centres and department stores to browse, window-shop and indulge in retail therapy once again. That said, the last few years have also shown the value of online shopping, with the convenience of your impulse-buys arriving on your doorstep proving so maddeningly addictive that we’re unlikely to give it up soon.

However you choose to shop, it’s important to consider what the best strategies may be to get the most value for your money. Here are a few tips to help you get started:

Make a plan, set a budget, but be prepared to improvise

Show of hands – who’s ever walked into a shopping centre or logged onto an online retailer intending to buy one item, only to make a dozen other purchases, possibly not even including what you originally came in to buy? 

Okay class, hands down.

As fun as it can be, impulsive shopping can put you at risk of financial stress. It may be worth considering prioritising certain purchases, and setting a budget that leaves a little flexibility for discretionary spending, such as when you see that cute outfit on sale from FARFETCH, Bonds, or UNIQLO.

Compare before you buy

Whether you’re splurging on electronics from Apple, cosmetics from Sephora, or just stocking up on cat food at Petbarn, we’re all vulnerable to falling for the maths of sales. But even if something is 75 per cent off, you may not be saving money if you’re buying something that you don’t actually need and/or want.

According to RateCity research director, Sally Tindall: “If a new TV or the latest headphones come with a discount it might seem like a great deal, but if it’s going to cause you a financial headache you might be better off deleting it from your basket and shutting down your browser.”

Consider conducting a few price comparisons and have a serious think about the potential value of what you’re buying before you hand over your wallet. It may also be worth checking the store’s returns policy in case you experience the dreaded Buyer’s Remorse.

If you're shopping online, one option to consider is using a browser extension that automatically hunts for discounts, sales, and reward offers across ecommerce sites, as this can offer a quick way to compare offers and search for some of the best deals. Just be mindful of your online privacy and security when using these extensions.

Consider different payment options

Depending on where you’re shopping and what you’re buying, you’ll likely have an array of payment options available to make your purchases.

Cash and debit cards can be quick and convenient, but once you’ve spent this money there’s no easy way to get it back – make sure you’re not spending the money you need for household bills and other expenses!

Credit cards may allow you to shop moderately beyond your means, and may offer access to additional benefits, like complimentary insurances, rewards points programs, or cashback when you shop with certain retailers. Just keep in mind that unless you regularly clear your credit card balance, you may be hit with interest charges that can quickly add up if you’re not careful.

The same advice applies to the interest-free deals advertised by some retailers – if you haven’t paid off your purchase within the agreed time, you could be hit with some significant interest charges.

Buy Now Pay Later services are a popular way to shop, though it’s just as important to be as careful with these as you would with other forms of credit. While BNPL services don’t charge interest, the late fees you may be hit with if you don’t make your repayments on time can be significant.

Will rewards offer extra value?

One way to try and get the maximum value for money when shopping is to look into what rewards programs and cashback deals may be available to you. If they match your spending style, and if you’re likely to benefit from the rewards, you may be onto a good thing. 

Rewards websites like Cashrewards say the amount of cashback you can get varies depending on which store you're shopping with but the average annual return through Cashrewards is $335 per customer. If you're an eligible ANZ cardholder for example, you might be able to get even more back though Cashrewards Max. It gives eligible ANZ cardholders access to higher cashback offers, faster cashback approvals and extra benefits from leading retailers like Adore Beauty and Sony when they shop via Cashrewards and pay via their linked eligible ANZ debit or credit card. Members can save on small everyday purchases and even the bigger ticket items like a holiday through Booking.com.

Cashrewards Max is free to join. Sign up and spend a minimum of $20 within 7 days of joining and a sign up bonus of $20* cashback will be added to your Cashrewards account. Offer valid for new members only.

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