Take a step back and look at the things you buy and how you buy them.

For larger items such as cars, you research them on the web looking at any and all aspects. Horsepower, style, color, resale value, gas mileage, eco-friendly, SUV or sedan, wheels and tires, automatic or manual, comfort, etc. After you think you’ve found what you’re looking for, you then spend a few days going to multiple dealerships trying to find the best deal/price.

Look at how you shop when you’re at the grocery store also. You look for the cheapest can of green beans ’cause you know it’s not any different from the name brand. You make your choices at the meat counter by comparing the different prices per pound. Some items you’re willing to pay a little extra for because you know they’re much higher quality than the cheaper counterparts.

How did you decide on your cell phone contract? Some will go after the cheapest price for the most minutes. Others have to have a certain phone. Still others go with the network where they’re assured the best coverage area and the least dropped calls. Another consideration is whether you’re going to lock yourself into a contract or go for one of the pay as you go deals.

So what’s my point with all this?

How much time and consideration do you put into your decisions when you “go shopping” for your investments?

You might hand your money to a fund manager in hopes that he’ll earn you a certain return for you. If you own these mutual funds, do you even know what stocks a particular fund is invested in?

You might be one who likes to pick your own stocks and investments. Do you spend as much time researching your possible stock picks as you do researching your new car? Do you look around for the best deal or buy when certain stocks go on sale?

Maybe you’re into real estate. Do you do enough research when shopping for these unique investments? Do you compare comparable prices of other homes in the area and such things as the price per square foot like you compare the price per pound at the meat counter?

Take a little time to decide on your investments. Try to find things on sale. Compare and analyze. It’s amazing to me how people will buy an investment based on some hot tip, but they’d never just take their friends word on what car to buy. You’ll also find that you spend less money on consumer shopping sprees if you spend more time shopping for investments.

The bottom line: Research your investments and shop for the best deals.

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