Nine Simple Rules which will Save You Thousands of Dollars

You may have decided to save more this year, to get better use out of your money or you need to find more money to make ends meet. It seems like there are thousands of ways to do it, websites offer numerous tips, books are available to help you and then there are all those advertisements teasing you to save big on everything from groceries to new cars. The number of ideas is so overwhelming that you almost don’t where to start.

But when you boil it down, all these ways to save can be condensed into some simple rules. If you apply these simple rules you will find yourself saving a lot of money. How much? Well that depends on how much you are currently spending and how closely you are already following these rules. It is quite possible you can save more than thirty percent of what you are currently spending. That is a lot of money no matter what your income and spending rates are. Here they are, and yes they may create a little inconvenience for you, but hey, getting thirty percent or more available money is worth a little inconvenience.

1. Never buy new what you can buy used.

New comes at a very high price no matter what you are buying. Four common examples are cars, clothes, household items and tools. Just about everything that is considered a durable good is likely to be upwards of seventy percent or more off if you buy it used. Let
somebody else take the hit. Instead of heading to the department store, head to the thrift shop, classified ads, consignment store, yard sale, or web sites like ebay or Craiglist. Another bonus here…There is no sales tax which in some areas is upwards of nine percent.

2. Think ahead and be patient.

Need a bedroom set, car or you have a baby on the way? Think about what you are going to need and then keep your eye out for great buys. This rule compliments rule number one. Using this approach you find lots of opportunities to save a lot of money. Once it is in your mind that you need something these items seem to pop up everywhere. It’s kind of like when you buy a car, suddenly everyone seems to driving your same car and the same color. You don’t always have to buy the first one you see (unless it is a perfect buy) which
will also help you to understand the price ranges and what you should be paying.

3. Never buy the latest gizmo or gadget when a previous generation will do.

Some people, commonly called early adopters, just have to have the latest technology…just because. Others just don’t realize the price premium they are paying. Let them buy the
latest and greatest, then, when the next gizmo comes around, use rule number one and two to buy it from them at a fraction of the original cost.

And don’t be enticed by the commercials that tease you to buy the latest and greatest. From computers to cars, buying the previous technology can save you 20-80 percent. Early adopters are often paying for nothing more than bragging rights – why not wait
and brag about how much money you saved?

4. Always ask for a lower price.

Some people believe that you get what you pay for and that the more you pay the better it is. That is just flat wrong. In almost every case you can purchase something at a lower
price than what is offered. Wal-Mart may not give you an additional price break if you ask, but Home Depot, Lowes and many others will including hotel rooms, doctor’s visits, cable bills, and car repairs, as well as asking for and receiving lower rates on loans and higher rates on savings.

And it is easy to do by just saying the following, “That’s just not good enough” then go
silent and see what they say. From now on, consider the original asking price of services or big-ticket items as what they are: an opening bid. Just say this statement a couple of times and you will find the bottom price. Just remember to remain silent after asking – that’s the important part.

5. Stop buying and paying a premium for name brands.

The days of uniqueness by brand are nearly gone. Most things are made of the same materials and basic design and in many cases come off the same assembly line – they are
just given a different brand name. Case in point – I received a black Tommy Bahama polo shirt as a birthday gift (the price tag was still in the shirt, $88.95). Several weeks later I saw what appeared to be the identical shirt at Costco for $14.95. I bought it just to see if it was the same. It was exactly the same except the sewn in brand label!

So what’s in a name? Often nothing more than bragging rights and a higher cost. The same is true, as the example above, for many products such as generic medicines. There
not just similar, they are identical, just check the labels if you want to be sure. Do you really think Ray-Ban sunglasses or Prada are that much better quality because the price tag is over $200?  There’s only one reason anyone would pay up to 50 percent more for an identical item, some commercial told them to.

6. Share amongst your friends, relatives and neighbors.

It’s probably not practical to share a TV or car with your neighbor, but what about his ladder, or your socket set? If it’s something both of do not need to use on a regular basis, and you get along well enough to share your items, do so. In addition to reducing the cost of the dual purchase of common use items, you also reduce the amount of space to store these items. And if you use something really infrequently, rent it instead of buying it.

7. Try to make it or fix it yourself.

This is the simplest and best way (for a lot of reasons) to save a tremendous amount of
money. Not only do you save money, you learn a lot, make better use of your time and you become much more independent.

When you hire a plumber for $100 an hour to fix a leaky faucet, most of that money does not go to the plumber. Most of it goes to social safety nets such as unemployment
insurance, social security, workman’s comp, Medicare, business insurances and other taxes. You avoid all that wasted additional cost and the actual salary by doing it yourself.

Don’t know how you say? You can learn or maybe a friend, relative or neighbor has the
expertise and can show you…no matter you will learn and will be able to apply this knowledge again and again in your life. Many times in ways you never would have thought of.

8. Use the Internet to comparison shop and to learn.

Just Bing, Google, ebay, Wikipedia or Craigslist anything and you will find all you want to know about virtually everything. While using the Internet, comparison shop for the lowest available price and/or coupons on anything you’re looking at or searching for online. Then use that knowledge to make the best possible purchasing decision in conjunction with the other rules I have provided.

9. Sell what you don’t need or use.

Your garage, attic, closets, cabinets and storage facilities are full of stuff you no longer
use. Sell it, and now is becoming the best time for a garage sale. Join up with the neighbors and have a good time while doing it.

Use these nine simple rules and you will definitely free up a lot of money, not just one time, but many times in your life which you can use to continuously strengthen your financial condition.

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