In reality, there is no such thing as free stuff: someone has to create the product and pay the cost of producing it. The trick is that sometimes the cost of things is passed on to someone else or paid for using some alternate method that isn’t obvious. How can you pay for free stuff? With time, stress and restrictions unlike what you normally would.
Wasting time
Are you wasting time jumping through hoops to pick up the free stuff? The saying “time is money” applies to anyone, not just business people, because time is something that cannot be recovered once it has been lost or “spent.” The way to know how much your time costs is by comparing it to money. If I spend an hour a month working for “free stuff” and I could be doing something that pays me $20 an hour, then I’m paying $20 a month. There are cases where you can save time, but you don’t necessarily get paid for it. What else would you rather be doing than chasing after free stuff? Maybe you’re learning something new, researching a deal that could save you money elsewhere, doing tasks you’re paying someone else to do, or changing a habit that could save you money. This concept is very individual, and you would have to see where your time is going to understand where the tradeoffs are. I often ask people, “Where does your money go?” There is a corresponding question that is in many ways more important: Where does your time go?” Given all the complaints about not having enough time, this question needs to be looked at more closely.
personal information
Many sources of free stuff will be featured only if you provide personal information. What’s wrong with this? You could argue that you don’t care, since all my information is available anyway and I have nothing to hide. Whether this is true or not, it still leaves you vulnerable to filling out endless forms or going through phone calls and emails that you probably aren’t interested in taking part in. Your information may be “shared” or sold to other vendors you did not deal with directly, adding to the hassle and wasted time. In the age of hacking and identity theft, the more places personal information is available, the more likely it is to happen to you. In addition to the stress and time spent paying off credit cards, updating antivirus software, and chasing money taken from your accounts, there is also a greater chance of fraud and theft, which is a huge disruption to your life. The effects of that can linger for years after the occurrence. The best security measure you can take is not to put information on a technology platform in the first place.
purchase restrictions
The old adage to save money when buying products is to “compare” to find the best deal. If you’ve ever done this, you know that sometimes there are big divergences in the prices of goods, either from different places or at different times of the year. One of my most valuable ways to save money is to shop when/where other people don’t. If you’re accumulating points, are you still going to shop around for the best deal even though points don’t accumulate? From the people I’ve seen, I think the answer is no. It is not likely that a store or website will always have the best deals. Even the cheapest known stores can have expensive products.
to be organized
Does being organized and doing administrative tasks come naturally to you? If so, then tracking points and optimizing their usage would be second nature to you. I see that many people are the opposite: filling out forms, doing paperwork, calculating discounts or accounting for taxes on purchases is not their strong point. If you want proof, go out to dinner with a group of people and see how the tip is calculated. If people bother with it, they’ll use the computer or an app to do it for them. An app or computer can’t make decisions for you when it comes to buying products with intangibles like time, irritation, and stress built into the equation.
the pretzel
Are you forced to buy things or use services that you really don’t want or at times that are not convenient for you? Do these options cost you in many other ways? A classic example is flying somewhere for points. Yes, the flight is free, but it is at 3am on a Monday. You may have been able to take transit to the airport, but at such a strange time, you’ll need a limo or taxi. The flight could have been direct, but the free flight may have 1 or 2 layovers where you lose hours at the airport(s). Since you’re wasting time at the airport, you’ll buy more expensive meals and use more roaming charges unless you plan ahead. If you have to stay overnight on a layover, there is an additional transportation and lodging fee that is part of your travel expense, but not necessarily part of your vacation. You may need additional vacation days because of this free flight, which will cost you other vacations you want to take. If you’re starting to feel like a pretzel, this is it. Are you going to make a comparison to see if it is worth the pretzel flight compared to paying a direct flight at the time you want and to the destination you want? If you forego the pretzel flight, you may not be able to redeem these points in the future. Maybe then you have to buy something to “use up the points”. Once you commit to these programs, you are under the issuer’s rules and they will change at any time to suit the issuer and profit. If someone is making a profit, the client is paying for those profits. The trick for you is to figure out if it’s worth it despite what may happen.
When is the free stuff worth it?
Free stuff can be a great deal if it’s treated as a discount you didn’t expect. If you take the opposite view of all the points mentioned in this article, then free stuff will be a good deal. If you would have bought the product anyway on its own merits and the points are a bonus, you are not subject to additional hassles or organizational hurdles, you have options to use the loyalty program and still get the best deal without the pretzel effect, then free stuff is probably a good idea. The key to this concept is to look at your spending habits and style and find a program that is a good fit for you rather than having to adjust to what the program demands. Sometimes you may have to give up programs if they just aren’t worth your time. If you find this impossible due to the idea that “I have to use my points” at all costs, this can feel like an addiction and decisions will probably be skewed rather than a bonus.