Saving money is just as important as making money when it comes to building personal savings. Those who want to save money can ask themselves some simple questions before making purchases in order to exhaust available options and make the smartest money management choices.
Spend Money the Smart Way: Six Questions to Ask Before Making Purchases
- Is the item available for less somewhere else? Comparison shopping at another retailer might pay off.
- Can it be purchased for free today and paid for later? This is a tricky one. Borrowing money to make an unnecessary purchase without actual cash in the bank may not be wise; however, borrowing money at zero percent interest when that same amount is currently invested at a good interest rate is a good deal.
- Is this the best value? Consider if a less expensive item might work better and/or longer. Alternatively, perhaps a more costly item will offer a better value.
- Will the item be at a lower price in the near future? Those who can wait to buy at the lowest prices of the year save tons of money. For example, good deals on electronics are abundant on Black Friday, the day after Thanksgiving. Retailers hoping to jump start the Christmas shopping season offer tremendous deals and discounts on this day. Individuals who wait until Black Friday to make large purchases often enjoy significant savings.
- Can the purchase wait until the off season when demand is low (or be purchased well in advance of the next in season)? For example, ceiling fans are not hot sellers in October and may be on clearance. Along those same lines, consider patio furniture in November or scarves in July.
- Is a coupon available to offset the cost? Consider doing a simple internet search for a coupon to print out or redeem online. For example, to find a Home Depot coupon, search for “Home Depot coupons” or “Home Depot coupon codes.” If the coupon can only be redeemed online, keep in mind that many retailers allow online purchases to be picked up in the store (this usually eliminates shipping).
Saving Tip: Spend Money Wisely on Large and Small Purchases
This strategy for saving money works extremely well for larger purchases. Additionally, the list of questions above can be adapted to help save money on smaller purchases such as groceries by eliminating question two and taking an opposite approach to question five. Reverse question five because groceries are typically less expensive when they are in season and/or in high demand (think: cranberry sauce around Thanksgiving time or strawberries in the summer).
To recap the saving tips mentioned in this article:
- Make a purchase when retailers are motivated to move stock (i.e. it’s on clearance) and when other people are not as interested in that item (i.e. out of season).
- Shop around at multiple retailers for the best price; wait on a good price if that’s an option (upcoming holiday sales, Black Friday, etc).
- Keep an eye on sales trends and possibly even pick up on when certain retailers discount different types of products.
- Never make an online purchase without first looking for a coupon code.
For those who practice frugal money management and implement these money tips, the savings will really add up.
Related Article:
How to Save Money with Coupons
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