The Morning Call, Allentown, Pa., Spending Smart column: First on your 'to do' list: survive

Oct 05, 2008 (The Morning Call - McClatchy-Tribune Information Services via COMTEX) -- AMZN | Quote | Chart | News | PowerRating -- The upheaval on Wall Street is beyond the control of average consumers. So are higher gas and food prices, and lower home prices and job security. That's why now is a great time to focus on what you can control in your money life: your household spending.

Household savings tips are suddenly in vogue.

Tightening your belt and living on a shoestring are the newest fashions. Although tips are great, sometimes it helps to take a broader, more strategic view, especially on buying bigger-ticket items of, say, more than $50. So it's important to learn How to Buy Stuff 101. This simple, three-step process will help you spend less and get more for your money. It's not about depriving yourself. It's about spending smarter on products and services you're buying.

Grade-school children learn the three R's: reading, writing and 'rithmetic. The basics for smart shopping are also three R's: read reviews, research prices and re-evaluate.

Of course, not every purchase requires a three-step process. But this procedure works for big purchases, from trucks and televisions to photography and fitness clubs.

Read reviews. The Internet is full of quickly accessible reviews by both professionals and real users of products.

The benefit of seeking reviews is clear. First, you can quickly learn the range of offerings in a product line and the differences in features among models. For example, is image stabilization a worthwhile feature on a digital camera? Is an optical zoom important? How many megapixels do I need? You're able to narrow down choices quickly to ones likely to fit your needs and wants.

Second, in comparative reviews, you'll learn which brands are better and why. You'll find out something about quality, reliability and usability.

How do you find reviews? You could use the old method of seeking recommendations from friends and family who made a similar purchase. But a better way is to go online and check ConsumerReports.org. The online companion to the magazine costs $26 per year, a worthwhile investment.

Also check the free ConsumerSearch.com, which compiles reviews. Amazon.com and many other online retailers offer user reviews on product pages. Of course, you should take user reviews with a grain of salt. You can also use your favorite search engine to type in a keyword for the product you seek and "review." Some sites specialize in certain types of reviews, such as Cnet.com for electronics and software and Cars.com and Edmunds.com for automobiles.

For services, reviews aren't as readily available, so word-of-mouth references are more valuable. ConsumerReports.org might have reviews of national service providers. But it could be worthwhile to subscribe to Consumers' Checkbook, http://www.checkbook.org , which covers seven metropolitan areas, or Angie's List, http://www.angieslist.com , which provides reviews of local service providers, such as plumbers and landscapers, in most regions. There also are niche review sites, such as TripAdvisor.com for travel reviews and RateMDs.com for doctor reviews.

Research prices. Prices can vary widely on the same items, so it's worth your time to look on the Internet, whether you plan to buy online or in a brick-and-mortar store.

Your best comparison tool is a shopping robot, or shopbot. You type in what you're looking for, and it returns prices from a variety of retailers. Examples of shopbots are Froogle.com, MySimon.com, Shopping.com, PriceGrabber.com and Shopzilla.com. Some shopbots review both retailers and products, as well as calculate tax and shipping if you are going to buy online. You also could quickly spot-check prices at Amazon.com and relevant retailers who have online sites.

For services, nothing beats the old advice of obtaining three price quotes from different vendors. And some services, such as travel, have dedicated shopbots, including Expedia.com and Kayak.com.

Re-evaluate. Nothing curbs impulse purchases more than sleeping on it. Forcing a window of time between your urgent desire for a purchase and actually buying it provides a world of perspective. If you're at a store and are tempted to make a discretionary purchase, don't necessarily tell yourself no. Instead, promise yourself to go home and research the product and prices. That allows time for the desire to subside and, even if you go through with the purchase, you're likely to make a better choice and receive a better price.

Gregory Karp is a personal finance writer for The Morning Call, and author of "Living Rich by Spending Smart." E-mail him at yourmoney@tribune.com.

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