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Is Amazon Prime Really Worth $119? For Me, Not Anymore

06.19.2021 by admin // Leave a Comment

Amazon Prime Not Worth It Anymore, is amazon prime worth it anymore

I cancelled Amazon Prime a year ago and haven’t missed it. After being a loyal Amazon Prime shopper for over 6 years why’d I do it? $119 per year isn’t that much money to pay for convenience. But, it’s still money that can be saved or spent on other things. Like many people I was stuck at home for months starting in March of 2020. I moved most of my shopping including groceries to online. And, while scouring every corner of the internet for masks and Lysol wipes I realized Amazon wasn’t the only player in town anymore. No company could deliver in 2 days anymore given the circumstances. I was just happy to receive what I ordered even if it took two weeks. I decided to cancel Amazon Prime but always figured I’d rejoin. A year later and I’m still off Amazon Prime. Is Amazon Prime worth it anymore and how am I surviving without a service once deemed inelastic?

My Amazon Prime Financials

When I first joined Amazon Prime I was a student (so I had a student discount). It cost $39 / year. How much does Amazon Prime cost in 2021? $119 if you aren’t a student, which was a huge price increase for me. In March of 2020 I looked over my expenses and started thinking about if I should cancel Amazon Prime. I started reviewing how many times I used Amazon Prime in 2019. In 2019 it turned out that I ordered from Amazon Prime 30 times. 9 of these orders were over $35 so I would have received free shipping anyways.

I never used any of the other Amazon Prime features so that was worth $0 to me. I also don’t shop at Whole Foods so those added discounts didn’t do anything for me either.

At the end of the day I paid $4 each order to get the 2 day shipping. Or, if I didn’t need the 2 day shipping I paid $5.66 each order to get the “free” shipping for the times I didn’t hit the threshold. Sometimes I ordered from Amazon to avoid paying $5 shipping at other places. Yet, here I was actually paying over $5 for shipping from Amazon. I just didn’t realize it because I was paying $119 flat once a year.

What is Amazon Prime really costing you? Look over all of your purchases in the past year and the times you’ve used other Prime features like watching a video for free. Deduct all the times you spent more than $35 from the total number of purchases and add in the number of times you used other Prime benefits. Then, take the $119 and divide by that total count. That’s how much you paid for Prime every time you used a benefit.

My Buying Needs Changed

When I first joined Amazon Prime I was moving into my first condo while also working full time and going to school at night. Living in the city without a car I had to ship things most people could drive and pickup themselves. I didn’t need everything in 2 days, but I did have items that cost less than $35. And, there were certain things around the house I realized I did need pretty immediately. Starting from scratch, my condo was pretty empty. When I went to make a new recipe I would find out I didn’t have the kitchen items I needed to actually make the recipe. I couldn’t wait until I had enough to put me over a $35 threshold for free shipping and being in school I couldn’t afford to buy things well in advance to get over the $35.

Now that over 6 years have passed I have most of the stuff I need. I’m not in situations where I want to cook something like salmon and realize I don’t own a baking sheet. And, if there are things such as a frosting set I’m in a better financial place than I was as a student. I know at some point I’ll have to order k-cups so if I’ll add those to the order to get free shipping.

I Became Better At Planning Purchases In Advance

When I was in school and working full time I was often focused on surviving all the things due that week. I didn’t have enough time or energy to remember in 2 weeks a birthday was coming up. If there was a holiday coming up, it was something I’d start thinking about a few days before. This led to needing 2 day shipping for gifts and other items to arrive in time.

Looking back at what I ordered in 2019 below $35 sometimes the order was as simple as k-cups or another grocery item. We ordered these on Amazon for price reasons and there was no reason to not plan ahead. I don’t have to wait until we’re out to place the order.

Amazon Competitors Like Target and Walmart Have Come Out With Good Alternatives to Amazon Prime

In years past, only Amazon Prime offered free shipping and the ability to get most orders in 2 days. Several companies had been building up their capabilities and by Summer 2020 everyone living in the United States has other reliable companies that offer 2 day shipping for free.

Walmart.com offers free 2 day shipping on orders over $35. If you want to avoid the $35 minimum and/or get free shipping next day you do need to sign up for Walmart+.

Target offers free shipping on orders over $35 as well. But, if it’s less than $35 or if you need it same day you can order same day delivery through Shipt or pick up curbside. Not only is curbside free sometimes you’re even offered extra discounts on items if you select curbside pickup. It’s not a surprise that Target sales jumped 23% in their fiscal first quarter.

Target and Walmart Prices Are Similar to Amazon Prime

There are times when Amazon is cheaper by a lot and I will continue buying those items on Amazon and wait for 5-7 days to receive it. However, after consistently looking at Walmart, Target and Amazon when buying stuff online I’ve learned that the price is either the same or only $1-2 difference for most items I buy. This is cheaper than the $4-5 per order I ended up paying for Amazon Prime.

Recently our Keurig started breaking. A replacement was $169 at Target and we could pickup curbside within 2 hours or shipped free. Amazon was $129 and free 5-7 day shipping. Walmart.com was $129 and free 2 day shipping. Plus, Walmart.com had extra credit card points from shopping through our credit card portal. We went with Walmart.

What About Amazon Prime Day? Turns Out That’s Taken Care of Too

What if you like the deals on Amazon Prime Day? First, ask yourself do you really need those items. Secondly, Walmart and Target have that taken care of too. This year both Walmart and Target are launching June sales events coinciding with Prime Day. Target All Deals Day purchases qualify for same day delivery, curbside and in store pickup. You can actually get your purchases faster than you can ordering on Amazon Prime.

Summary

I thought I would never be able to live without Amazon Prime and here I am about a year later not missing it at all. After consistently looking at Walmart, Target and Amazon when buying stuff online I’ve learned that the price may be slightly cheaper on Amazon ($1-2) but it now takes 5-7 days to get it without Amazon Prime. I never used all of the other Prime offers, so I only paid the subscription fee for the free and expedited shipping.

$119 doesn’t seem like much for the extra convenience when Amazon was the only option in town. Now that you have other options from Walmart.com, Target.com and Target same day pickup among others do the quick math to see if it’s still worth paying for Prime. Especially if you only use it for the free shipping it may not be worth it anymore. Do the quick math, ask yourself is Amazon Prime worth it and possibly save yourself $119 / year.

Categories // Smart Spending Tags // Shopping

Why You Should Buy Clothes Now – Even Though You Have Nowhere To Go

11.21.2020 by admin // Leave a Comment

best clothing deals, best time to go shopping for clothing

Why buy clothes when you have nowhere to go? We’re all living in the same few outfits at home, do you really need new clothes? Probably not today, but one day you will. With no one buying clothes the best clothing deals are now, and eventually you will need new clothes. Don’t say you don’t need something now and skip the deal only to need a new pair of snow boots a year from now and spend $50 more. The Census Bureau released consumer spending for March which showed a staggering 50.5% drop for clothing and accessory brands. With this unexpected drop in demand, there is a ton of inventory and a ton of deals!!

With Black Friday right around the corner, you’re likely to find a lot of great deals as retailers try to get rid of their excess inventory. You’re also likely to find great deals on second hand sites as people clear out their closets and resell final sale items that didn’t end up fitting.

Their Loss is Your Gain – Take Advantage of People Emptying Out Their Closets

With most people spending more time at home than usual many have taken the opportunity to organize their closets. They’re donating clothes and also selling them. This has led to a lot of great finds at thrift stores, Poshmark, The RealReal and local consignment stores already.

Now, 6-8 months later did you miss these deals? Definitely not! There was still a lot of uncertainty back in March. Now it’s clear the normal we return to may look very different. Some people may continue to work from home full time or even relocate. Not everyone is the same size they were back in March. Many are still clearing out their closets or still have stuff listed for sale from earlier, take advantage!! And, don’t forget to negotiate if you’re buying on sites like Poshmark for an even better deal.

Retailers Are Still Trying to Get Rid of Excess Inventory

While consumer spending has rebounded since March, demand in 2020 is still lower than brand expected. This has led to excess inventory. To get rid of this inventory and get much needed cash flow retailers have increased discounts on clothes and accessories.

Why is it likely we’ll see excess inventory continue in 2020? There are significant lead times in apparel, so most of 2020 was planned for back in 2019 when no one expected a global pandemic. Supply Chain Dive took a further look at a McKinsey and Company survey and notes that hybrid sellers on average have a 44 week lead time. This compares to vertically integrated companies which have an average lead time of 28 weeks.

While retailers typically have end of the season sales, the selection on sale is much better than usual. For example, Lululemon always has a “We Made Too Much” section on their website. Usually this includes merchandise that didn’t do well, or popular styles in not popular colors. But now? Browse the selection and you’ll see popular styles in popular colors. I got a black Swiftly Racerback for $39! The first Swiftly Racerbacks I bought back in 2014 and are still in great condition even though I’ve probably worn them at least 500 times by now. Seriously.

Lilly Pulitzer has two After Party Sales a year with insane discounts and added another sale this summer. The next APS likely in January will likely have a great selection.

The good deals at stores like Lululemon and Lilly Pulitzer are final sale. So, you’ll also find many new with tags deals on sites like Poshmark from people reselling these items because they didn’t fit.

What Clothes Should You Buy?

Getting a good deal on clothing isn’t a good deal if it sits in your closet and you never wear it. You may be able to resell it for the same or more later because the discounts are that steep right now but you shouldn’t plan on that. So, what clothing should you buy when you don’t know when you’ll be able to wear what you buy?

Buy Clothes and Shoes For Your Capsule Wardrobe

A capsule wardrobe is a mini wardrobe made up of versatile pieces you love to wear. Plan your capsule wardrobe based on your style. You can look for inspiration on Pinterest. WhoWhatWear shares how to get to a 37 piece capsule wardrobe.

Next, take inventory of your own closet and see what you’re missing. Keep a list of the items you’re missing and then look for sales and good deals on the items on secondhand sites. When you buy a piece, cross it off your list.

Buy Timeless Pieces

Clothes go in and out of style. If you see a piece of clothing that you like now but know you may not like later don’t buy it. If you don’t have anywhere to wear it while you like it, it may sit in your closet never worn. Instead, focus on the timeless pieces. This doesn’t mean just expensive pieces. It can mean something as simple as a basic tee or a pair of jeans.

Buy Shoes

If you’re not sure what clothing you’ll need in the future, but want to take advantage of the deals now look for deals on shoes. If you work out a lot, you know you’ll need new sneakers at some point. Whether you’ll be back in the office or not, you always need a good pair of black heels, nude heels and black flats. If you live in warm weather you’ll always need a basic pair of sandals and if you live in an area it snows you’ll always need a pair of snow boots. Why not get a good deal on them now?

Buy Work From Home Clothes

Working from home isn’t going to go away anytime soon. Even when things get back to “normal” many people may continue to work from home full time or a few days a week. You might as well be comfortable, especially now that you’re spending less on dry cleaning and commuting.

Buy Workout Clothes

Quality workout clothes make all the difference. They last longer (I still have Lululemon from 5 years ago that are a little faded but otherwise great condition)! I’ve also found that quality workout clothes have also motivated me to work out more and better. When I was wearing free t-shirts I would congratulate myself for just making it to the gym. After I invested in quality workout clothes I made myself take working out much more seriously to justify the purchase.

Where To Find the Best Clothing Deals

There are still a ton of deals out there now on clothing. On basic items, Target, Walmart and Amazon have Black Friday specials on everything including clothes. For luxury items even Saks and Nordstrom still have incredible deals to get their inventory sold and generate cash. It’s hard to find a retailer that isn’t advertising great deals right now.

The best deals you’ll usually find are for second hand items. Poshmark and TheRealReal are really easy to shop from home. You can search NWT (New with Tags) items on Poshmark to get all of the non returnable new gear people bought and it didn’t fit from sales at places like Lululemon and Lilly Pulitzer earlier this summer. While you can’t return items on Poshmark, you can return items on TheRealReal as long as they aren’t final sale. And, if you enjoy the thrill of finding a good deal stores like TJ Maxx are likely to have a better selection than normal as well as thrift stores!

What deals have you found on clothing this year?

Categories // Smart Spending Tags // Clothing, Shopping

Spending Guilt? Stop Feeling Bad About Spending Money

10.11.2020 by admin // 1 Comment

fear of spending money, ok to spend money, don't feel guilty spending money

Spending more than you earn is a problem. And, it’s easy to look at debt amounts and realize when something needs to change. On the opposite end there are super savers, saving more than 20% of their income. There are a lot of benefits to building financial independence; however, saving too much money may be a problem as well. Do you fear spending money? Do you avoid spending money at the expense of your health or happiness? This year especially has taught us that we won’t always have the opportunity to go on that dream trip, see a Broadway show or see a sports game. We’ve seen firsthand how many people and businesses are struggling and that we’re in a position to help. Here are 7 reasons why it’s OK to spend money.

Your Favorite Small Businesses May Not Be Around In A Year

This year has been incredibly difficult on small businesses. Many of them had to close for months and are struggling to barely get by, if they’re even still open now. According to a small business survey by PNAS the median firm with over $10,000 expenses a month only had enough cash to last roughly 2 weeks. Small Business for America’s Future polled 1,500 people and 34% said they can’t make it to the end of the year without some help from the government.

That restaurant or bakery you only go to for special occasions or a rare treat? They may not be open when that special occasion comes around. Now more than ever small businesses need our help to stay in business. With the high unemployment numbers many people can’t afford to support local businesses right now. If you’re employed and have some spare cash any business you can give to local businesses will help them avoid closure.

Your Health Is Priceless… And, Being Proactive About Your Health Will Always Be Cheaper

It is always ok to spend money on your health. A healthier diet cost $1.50 a day more than an unhealthy diet on average. This ends up being $550 a year. An unhealthy diet is one of the leading causes of poor health and accounts for up to 45% of cardiometabolic diseases. Now, more than ever it’s important to be in your best shape. Obesity and diabetes are two of the highest risk factors for disease severity and mortality rates now.

There are also plenty of benefits attributed to regularly working out. Gym memberships may even be partially covered by your health insurance driving the cost down.

Don’t feel guilty about the money you spend on your health and staying healthy. It may seem like an area to cut costs but don’t lose sight of the long term high costs of being unhealthy. Your life literally could depend on it.

Your Charitable Contribution May Change A Life

In 2018 an estimated 1 in 9 Americans were food insecure which amounts to over 37 million Americans including 11 million children. If these 11 million children weren’t going hungry, what would they be able to accomplish at school? Unemployment is high right now, and there are countless stories of how long food bank lines are now. Helping these families during these incredibly difficult times makes a huge difference. And, you can possibly quadruple the impact of your charity donation with these simple steps.

Charity Choices shares some statistics on charitable giving in the United States. For example, they share the average adult gave $1,050 and the average household gave $2,030 in 2014. They also found that on average Americans give 2.1% of their disposable income to charity. Now, think about your own charitable giving and consider the amount of money you spend on yourself and your savings rate. Can you afford to give a little more?

You Can Always Make More Money But You Can’t Make More Time

The F.I.R.E. movement (financial independence retire early) talks about making sacrifices now so you can become financially independent and retire early. You either work a ton to make more money early or become frugal so that you can retire on less (or perhaps both!). Sacrifices you make in your 20s do pay off in your 20s and beyond. But, you’ll never get that time back. What are you giving up so that you save money?

Everyone gets 168 hours a week. If you get the recommended 8 hours / night of sleep you’re down to 112 hours. If you work and commute a total of 50 hours / week you’re now down to 62 hours a week. In that 62 hours you have to shower, eat meals, run errands, workout, take care of kids / dog (if you have them). The more responsibilities you have the faster that “free time” dwindles.

Map out your week. How many hours each week you truly have as free time when you’re not working, sleeping, eating, showering, taking care of kids, etc. Now, how much is each of those hours worth for you?

Now, this doesn’t mean to “YOLO” and rack up a ton of debt outsourcing things you don’t enjoy like cleaning and traveling the world. But, you shouldn’t act like money is finite and time isn’t. Just like you create financial goals and plans create plans to manage your time. It’s much easier to make more money than it is to buy more time.

Opportunities Don’t Last So Take Advantage While You Can

You shouldn’t act like every single opportunity will only come by one time. If you can’t go to a dream destination next year you can likely save up for a few years and go at that time. There are certain situations though that will only last for so long, or will only happen once and you should think harder if it’s worth skipping these moments because you want to FIRE.

It’s a lot cheaper to go on vacation with a bunch of friends in your 20s- rent a house, carpool because you all live close together. People grow up, they move away, they have kids. You may be in a financially better situation in your 30s but the opportunity to travel with a huge group of friends cheaply may not be there anymore. This doesn’t mean spend like YOLO, but you shouldn’t say no to a once in a lifetime trip to save $500. Especially if spending that money won’t put you in debt and there are plenty of ways to travel for less.

If you absolutely love a band or love a sports team go to their concert or go to a game. You don’t have to buy the most expensive ticket to get the experience. It’s just as exciting being in the cheapest seat in the house as it is being up front and center. You still saw the concert or sports team live.

If Pictures Are Worth 1,000 Words What Are Experiences Worth?

11% of Americans have never traveled outside their home state. 40% of those questioned have never left the country according to Forbes. International travel helps broaden your creativity, become aware of other cultural values and helps you develop a broader view.

There are plenty of free attractions, including these free attractions across America. Even if the cost of the experience itself is free, often you need to spend money to get there. It’s ok to spend money on experiences that will enrich your life.

Items That Bring You Joy

For years I wanted a quilted Burberry jacket. I convinced myself I couldn’t afford it (I could have) and I needed to invest that money. When I finally bought it (on sale!) I loved it and frequently wear it every spring and summer. I’ve now had it for almost 4 years and it’s still in near perfect condition. I’m sure I’ll have it for at least a decade, if not longer. Looking back, what was the point of delaying this purchase? I still needed a jacket so I bought a jacket I didn’t love instead of this. I ended up spending more money than if I had just bought the jacket I really wanted in the first place! Sometimes by delaying a purchase you end up saving money- for example not having a car for a few years- but in this case I just delayed joy.

Obviously there is a limit to this. If the purchase will put you in debt you should go with something that brings you less joy and is much cheaper or wait to buy. Feeling guilty after buying something expensive is completely normal. Remind yourself that you shouldn’t feel guilty on buying expensive things you can afford that bring you joy.

See Also: Why You Should Buy Clothes Now Even Though You Have Nowhere To Go

A Reminder That It’s OK To Spend Money Summary

When you’re a super saver, you may have a fear of spending money. Remember, tomorrow is never guaranteed. So, make sure to enjoy the moments you live today. Set goals for how much you want to save, how much debt you want to tackle this year, how much you want to invest. Automate your savings directly from your paycheck into your savings account so any money in your checking account you’re free to spend. Once you’ve hit those goals, don’t feel guilty about spending money.

Categories // Smart Spending Tags // Charity, Shopping, Travel

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