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Tag Archives: How to save money

A Non-Negotiable Guide to Smart Purchases

Like most of you, I try to be frugal whenever possible. For some us it just comes natural and for others it’s hard work. I see myself moving away from frivolous spending towards frugal spending daily. I’ve been trying really hard to take care of my personal finances so it’s becoming painful to pay full price for something! Last weekend I went shoe shopping, and I found a pair that I really liked. I thought they made me look professional and laid back (I’m not sure how that happens, but it did). They weren’t on sale, and the store refused to give me a discount. Even though I really wanted those darn shoes, I couldn’t pull the trigger. I was able to walk away from them because, to me, shoes aren’t important. It’s crucial that we all take a minute to think about what’s important to us. I’m not talking about friends, family, and pets. We all find those things important. I’m looking at this from a purchasing point of view (most of us don’t buy our loved ones). If we know which purchases are important to us then we will also know which aren’t.

 I’ve been thinking about this idea for a long time, and it’s really helped me save money while being satisfied with my purchasing choices. Every time we buy something there is usually a name brand and a generic/off brand. Which should we get? Really frugal people might always go for the cheapest products, but most of us, even if we care about our finances, won’t be content if we practice that type of shopping. The following is an example from my past that will help explain this. A couple years ago I lived with my friend Jimmy. Jimmy ended up getting the flu, and he wanted to borrow some NyQuil from me. At the time I had two huge bottles of some stuff I bought that were generic NyQuil. When I bought them I thought I was getting a great deal. They were 2 for the price of 1! When I handed them over to him he looked like a dear stuck in the headlights. He reluctantly took some. When I got home a few hours later he had a bottle of actual NyQuil sitting on the kitchen table. When I asked him about it he said, “That generic stuff doesn’t work. I had to go get the real thing.” I was shocked. Here I thought I got a good deal on some disgusting tasting off brand NyQuil, but it wasn’t good enough for him. To me medicine is medicine. The brand doesn’t matter. I’m not going to spend extra money to get an actual bottle of NyQuil. To Jimmy all cold medicines are different, and even though they have the same ingredients, some work better than others. He knows he is going to pay more for the “real” stuff, but he is willing to do so because it makes him feel better. He cares about his personal finances, but sometimes we have to go with what we trust (even if it costs extra).

How can you save money by knowing which purchases are important to you? Follow these 4 steps and you can get your answer:

1) Make a list with 3-5 non-negotiable items that you won’t go cheap on.

          a. EX: medicine, food, and electronics

2) Memorize your list or carry it around with you.

3) Every time you buy something check to see if it’s one of your non-negotiable items.

4) If it’s not on your list go for the cheapest thing you can find that still fits your needs, and if it is on your list go with whatever you think is best.

The whole point of this is to keep your list short. If you have a list with 100 items it won’t help your personal finances. If you only have a few non-negotiable it will save you money, make shopping easier, and you can be proud with your purchasing decisions. Jimmy’s list has medicine on it, but it doesn’t have clothes. When he goes shopping he knows he won’t be frugal when buying Nyquil, but he also knows he should shop for clothes off the clearance rack. It’s important to remember that budgeting doesn’t mean always buying cheap stuff. It means you’re taking care of your money in a way that suits you best and enables you to meet your goals. This is just another tool to stay on track. My question to you is: Do you know which purchases are important to you?

 
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Posted by on April 26, 2012 in Uncategorized

 

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The Easiest Way to Save Money- Just Ask

Recently I’ve been seeing a lot of examples of the power of asking for something. My girlfriend’s father loves the quote, “The answer is always no unless you ask.” I can admit that I’m very introverted when it comes to this topic. For whatever reason, I don’t like to ask people I don’t know questions, and I frequently assume the answer will be no, and I know I’m not alone in this. I would even go as far to say that most people hold themselves back by assuming the answer will be no. This is such a huge mistake! There is a lot of power in asking people for something. I think this is true because the majority of people won’t ask. If 100 people want something, but only 10 ask for it, the 10 that asked will receive whatever they wanted before the other 90.

 I was recently reading a blog post (which I can no longer find) where the woman swears she gets discounts just by asking for them. What a neat thought. I would have never had the guts to just ask for a discount. I would just assume that if they wanted to give a discount they would have already attached a huge 10% off sticker to the item. I never ask about special discounts so I never receive them. There was another guy I saw on TV that tries to completely avoid spending money. Instead of using cash, he tries to barter with companies. Now I can’t see myself doing this very often, but he has great success with it! He’ll write you a poem for a doughnut, or pick up trash for a meal. Most of us won’t go out and do these things, but if companies are willing to trade a song and dance for their product I guarantee they’ll give a small discount.

 Why don’t most people (myself included) like to ask for things? I think it’s because it makes us uncomfortable. I personally feel dumb when I ask for something and the person tells me NO. We as a society don’t like to be told NO so we avoid it all together. Depending on the situation, there are different techniques you can try to change a NO into a YES:

1) The Power of Reciprocation- Do you get something for free? Give it away as a gift in the hopes that it will benefit you in the long run. When I worked in a restaurant, I would have definitely given a customer free drinks or an appetizer if they gave me a gift. The urge to reciprocate is very commanding.

 2) Talk Yourself Up- Companies are constantly giving influential people free things to help market their business. If you can persuade these people that you can help them they will most likely want to make you happy. I’m not saying go out and lie to people or scam them. All I’m saying is that if you’re at a book store, and you want a discount, you might be able to mention that it’s your turn to pick the book for your book club. You have 25 other people that would buy that book, but your book club rules state you can only spend $15 on a book and the one you want is $20. It’s worth a shot!

3) Don’t Ask for Too Much- Asking for a 10% discount might not be a big deal, but demanding 50% off is pushing it. If you asked your boss for a raise you would probably have more success asking for a $1/hr instead of $10/hr. Just keep it reasonable.

4) Give a Valid Explanation- Most people like to deal with reason. If something makes sense it’s hard to say no. If you want to purchase something that is a little damaged ask for a discount. I love the items that have exterior damage but work perfectly. They are always worth asking about.

 It’s time for me to get over my fear of the word NO. Please share any successes/failures you’ve had by asking a simple question. I think that hearing examples of how you saved money would help me with my fear.

 
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Posted by on April 13, 2012 in Uncategorized

 

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