Comments on: Layaway – Buying Clothes on a Budget

By: Matt Jabs

Matt Jabs — Fri, 12 Mar 2010 19:27:06 +0000

Yeah, I like the idea of layaway for many reasons… and won’t hesitate to use it as long as there are no fees attached.

By: Steve in W MA

Steve in W MA — Fri, 12 Mar 2010 18:59:45 +0000

While I understand those who use a sinking fund and then only go shopping after they have the cash accrued, I think layaway can be a very good thing for clothes purchases because some stores run out of certain styles and sizes as the sales season goes on so you won’t necessarily be able to just buy the item in the future when you have all the money saved up. After you have gone to the effort of selecting a style and fit you don’t want to have to go through that again, and you don’t want to run into the situation where the item is simply not available for purchase anymore, either,

Having the store hold the clothes you have selected and paying on the layaway plan sounds like a good thing and avoids the extremely slippery slope of the credit card purchase.

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By: Andrew @ Earn Give Save

Andrew @ Earn Give Save — Wed, 11 Nov 2009 14:07:37 +0000

Matt, I totally agree. A much better alternative to paying for your holidays after they're over! Great work on the blog—keep it up! .-= Andrew @ Earn Give Save´s last blog ..You should be reading! 5 great places to find cheap books =-.

By: Matt Jabs

Matt Jabs — Wed, 11 Nov 2009 05:55:41 +0000

Oooh, I didn’t know Kmart’s layaway cost money – that’s not cool. If I went in there I would tell them that I would prefer not to pay the fee, and ask if that was possible… and if they said “no”, I would just take my business elsewhere.

Although I appreciate them keeping the program alive, I do not think they should charge a fee for it. After all, by not using a credit card for the purchase… the buyer saved them 3% in Interchange fees.

I normally get my discounts simply by asking – it’s surprising what we can get if we will just ask!

By: Matt Jabs

Matt Jabs — Wed, 11 Nov 2009 05:51:27 +0000

Awesome Mrs. White. Layaway beats using credit cards at 20% interest any day, which is what everyone has been doing since the 1980′s.

I was glad to find this program, and also happy to see the concept coming back to life this year.

Recessions are good for us, many people don’t think so, but I think they make people more resourceful and creative.

By: Matt Jabs

Matt Jabs — Wed, 11 Nov 2009 05:47:06 +0000

Hey Andrew. There are no penalties, and I see your point – but this post is written not really as an end all be all solution, but rather just another option for people. I love that layaways are making a comeback. I hold them in much higher regard than credit cards.

By: Matt Jabs

Matt Jabs — Wed, 11 Nov 2009 05:44:59 +0000

Hey FS…
The simplicity and sturdy construction of this coat is exactly why I am buying it. I have a project coming up where I am going to get rid of 80% of my clothes and only keep necessities. From here forward, any purchases made will be for items of generic fashion (I could care less about being “in style” – I wasted enough time doing that in my teens & 20′s) and extremely high quality and functionality.

The 80% I get rid of will go to Goodwill as a tax write off… I do that every year, just not to this extent.

By: Mom

Mom — Tue, 10 Nov 2009 22:48:33 +0000

Way ahead of you there, my boy!! I have been using Kmart’s layaway for about the last year. There is a $5 charge for each layaway, but that is still far and away better than paying interest on a credit card. I have been doing everything strictly on a cash basis for many years, and having the layaway option makes it much easier to purchase many household items on time. Or clothing. My strategy also includes looking at the weekly ads and evaluating the advertised specials. I then shop for the things I need and usually go to Kmart, because that is the only store (besides a small Sears store that mainly specializes in all sorts of equipment) in my hometown that offers layaway, as far as I know. The temptation, of course, is to shop specials and buy just because there are sale prices offered, not because one really needs the item on sale. I try to avoid temptation by looking at the ads early in the week, then writing down the specials, thinking about it all week and asking myself on Saturday if I really need the item. I manage to avoid about 90% of impulse purchases that-a-way!

By: Mrs. White

Mrs. White — Tue, 10 Nov 2009 12:52:13 +0000

This brought back some memories. In the late 1980′s all of us young mothers would head to the local department store and fill up our carriages with Christmas presents for our children. We did this on the major sales day. We would all budget our money for the next several weeks so we could come in and make payments. We did not get our items until they were all paid off. We would always sigh with relief and gratefulness when the day came to make that final payment and get those toys home and wrapped for our little ones.

Blessings
Mrs. White
.-= Mrs. White´s last blog ..America’s Heritage and Adventure in Liberty =-.

By: Ken

Ken — Tue, 10 Nov 2009 02:34:44 +0000

My wife and I have used layaway sparingly over the years. We won’t use it this year because it’s too close to Christmas already…I get paid once a month.

By: Andrew @ Earn Give Save

Andrew @ Earn Give Save — Tue, 10 Nov 2009 02:08:04 +0000

I think this is definitely a great way to go, provided that there are no penalties for changing your mind later. Also, I would probably only use layaway if I knew I was going to be getting a good deal. If it'll be the same price next month, I'd rather keep the money in the bank (our credit union gives us 6% interest) and wait to make the purchase. .-= Andrew @ Earn Give Save´s last blog ..Not another grocery saving post =-.

By: Financial Samurai

Financial Samurai — Tue, 10 Nov 2009 00:54:05 +0000

Sounds like a good plan Matt! You gonna buy that jacket in your picture though? Kinda plain no?

I got so many clothes it’s annoying. Got to de-clutter and donate away!
.-= Financial Samurai´s last blog ..How To Lower Your Property Taxes – Adventures In Assessor Land =-.

By: Matt Jabs

Matt Jabs — Mon, 09 Nov 2009 21:31:24 +0000

Ha and HA!

I stopped buying “clothes in style” years ago my man. Now I shop for clothes that are of generic style that will last me forever… like Carhartt!

Do you wear “skinny jeans?” They’re “in style.”

By: Jason @ RedeemingRiches

Jason @ RedeemingRiches — Mon, 09 Nov 2009 20:46:58 +0000

Interesting take! I don’t think I’ll become an enthusiast though – I don’t get my rewards points that way!:) Ha ha!

Anyways, I think the mindset behind is good – you get the item when you pay for it. Hopefully it doesn’t take so long to pay that the clothes go out of style.
.-= Jason @ RedeemingRiches´s last blog ..5 Dumb Mistakes That Smart People Make =-.

By: Matt Jabs

Matt Jabs — Mon, 09 Nov 2009 20:23:39 +0000

It’s more about options than a single solution. Also, if someone has the mindset of buying whatever they want… layaway and nothing else will be able to help them!

By: Matt Jabs

Matt Jabs — Mon, 09 Nov 2009 20:21:41 +0000

Hey Evan: Yeah, I use ING savings funds for all kinds of savings goals, but for clothing we use cash envelopes. Because of this it’s easier for us to just save up the cash from our envelope for a few months and go buy it… or just use layaway.

Basically I use both, but just like to offer choices and alternatives. Some people don’t use ING and their banks do not afford them the same great conveniences as ING affords us… so layaway is another option.

Cheers man!

By: Craig

Craig — Mon, 09 Nov 2009 20:19:39 +0000

I understand your reasoning for it and it seems to be working for you. I don’t like it cause it gets you in the mentality that you can put anything on layaway. I’d rather just pay in full when I can or not buy in general. But your envelope system is working well, so keep it up.

By: Evan

Evan — Mon, 09 Nov 2009 20:10:05 +0000

Matt,

I don’t get the new found love with layaway:

http://www.myjourneytomillions.com/articles/why-is-layaway-becoming-more-popular/

Just use ING or similar bank that allows for subaccounts – let them PAY you to make your own layaway instead of paying a company.
.-= Evan´s last blog ..What is Intestacy? Don’t Let the State Determine Where your Assets Go! =-.