By FPA member Henry J. Ramirez, JD, CFP®

Last Updated: July 11, 2011

In the current economic climate, many of us are trying to pinch pennies. With gasoline and food prices reaching for the sky, everyone is trying to save money whenever they can. You all love to get a bargain, right? You like to go shopping and buy something on sale because it makes you feel good. Maybe you do, but maybe you don't. Do you really need two cell phones when one will suffice?

Say you are in the market for a new cell phone. You go to the mall and see a BOGO (buy one get one free) at one store. Another store has a 50 percent off sale on cell phones. Sounds about the same? Not really. You end up spending more money with the BOGO sale.

If each phone costs $300, then, with the BOGO, you get both units for a total cost of $300. If the same cell phone is 50 percent off, then you would spend just $150. Yes, you are only getting one unit, but your original intent was to buy one cell phone at a low cost. If you are spending more money to get a “bargain,” is it really a bargain?

When you are shopping, be sure to compare prices. Ask yourself, “Will I be able to use two cell phones?” (buy one get one free), when all you were in the market for was one phone to check your emails. The alternative would be for you to take the deal, keep one cell phone and donate the other one to the local charity. Now that is something that will make you feel good.

FPA member Henry J. Ramirez, JD, CFP®, is a financial advisor with Wescott Financial Advisory Group LLC, headquartered in Philadelphia, with offices in Miami and Boca Raton.