(AgapePress) - Many people are considered "cheap" if they pursue bargains or seek out the most economical sources in town for products or services. Yet, when people need advice on where to shop because of an unexpected major purchase or financial emergency, they run to the "cheapskates." Why? Because they see the wisdom of saving every possible dollar in order to use it for more productive ways. The following list of money-saving tips is not meant to be exhaustive, but it does represent ideas our family has used in order to allocate our resources efficiently and accomplish our financial priorities.
Buy used, especially for major purchases. Contrary to popular belief, buying used is not risky and does not take a lot of expertise. It does take planning and a little bit of elbow grease. A few years ago, we needed to buy a refrigerator. New refrigerators at that time cost about $750, way more than we had in cash after purchasing our first home. We decided that buying "used" was our best option. First, I studied refrigerators in Consumer Reports. Second, I began scanning the classified ads and made a lot of telephone calls. After you become adept at classified shopping, you soon learn how to screen people who are overselling or "hyping" their merchandise and those who sincerely have a genuine reason for wanting to sell. The result: I bought an almost new frost-free refrigerator for $250. There was nothing wrong with the refrigerator except that it was the wrong color for the seller's new home!
One of the main points in buying used is that, if at all possible, you should anticipate your need. If you know you are going to need a new appliance or a car, begin shopping three to four months before replacement becomes necessary. The following are items we have bought used: automobiles, television, stereo equipment, refrigerator, furniture (all types), children's clothing, and tools. One of the most obvious items to buy used is an automobile. Studies indicate that new cars depreciate as much as 20% to 40% in the first year of ownership. Let someone else pay for that depreciation!
Rent. Some things you just don't need to own: timesharing arrangements, boats, major tools, the list goes on. It amazes me how easy and cheap it is to rent state-of-the-art equipment, return it when you want to, and not have to worry about maintenance, depreciation, obsolescence, property taxes, etc.
Comparison shop. If you need to make a major purchase or have major repairs done on your car, get more than one estimate. Often the prices will vary by several hundred dollars. The same holds true for your annual auto insurance and homeowner's insurance.
Pay cash. This offers two advantages. First, you may be able to buy an item for less by offering cash instead of charging. Second, it forces you to "count the cost" of each purchase more carefully. You won't make as many impulse purchases.
Generic food brands. Major grocery stores offer generic or house brands. Don't be afraid of them! They are often made by the same manufacturer who makes the name brand but puts a different label on it. It doesn't hurt to try the product once; then if you don't like it you can go back to the name brand.
Anticipate needs. We have five children so we often buy in quantity when going to the grocery store or membership warehouse to take advantage of quantity discounts. If a store in our particular area is having a year-end clearance on items such as tennis shoes, shirts, or pants, we will buy half a dozen or a dozen of each. They may not fit our children now, but sooner or later one child will grow into them.
Baby sitting co-op. Get together with other couples you know in your area to develop a baby sitting co-op or club, trading time on a child-per-child basis. This will provide quality care without the expense. I estimate that in one year we saved over $300 by using our baby-sitting co-op, and we've developed stronger friendships as well.
Dental schools. If your county or state has a dental college or hygienist school, you may be able to get your teeth or your children's cleaned at a considerable savings. These hygienists in training are supervised by a dentist, and treat your children's teeth methodically. In the 11 years we have visited our community college clinic, we have never had a bad experience. For an average cost of $8 per child, they get their teeth cleaned, plus fluoride treatment, sealant, and X-rays if necessary. On top of that they also get a new toothbrush!
Medicine/generic drugs. With a family of seven, we have many miscellaneous medical needs. Whether it is the local drugstore's house brand or buying our antihistamines via mail order, we rarely pay top dollar for a brand name drug. For the one antihistamine/decongestant we use for the kids' colds, we pay less than 10% of the price of a popular brand name, and the formula is exactly the same.
Negotiate. I am a great believer in negotiating price. Some time ago I was interested in buying a particular charcoal grill. After the salesman explained all the features to me, I asked him the simple question, "Is that price the best you can give?" I ended up saving 10%. I am not always a good negotiator when it comes to talking terms with salesmen. But I have found that the simple principle, "you have not because you ask not," really holds true. I do not negotiate hard; I simply ask if that is their best price.
Matching price policy. Most of the retailers in our geographical area have a policy of matching or beating any advertised price. In the course of a year we will take advantage of this policy several times. Recently, our local hardware store was more than happy to match prices of a discount store when I provided a copy of the store's ad. I've never had anyone "look down on me" for shopping price; in fact, most have been very appreciative of my patronage.
Have a garage sale. We usually have an annual garage sale to help us get rid of the stuff we normally would just keep accumulating. Frankly, it is unbelievable what people will buy in garage sales. We enjoy having them. Often we have free Christian tracts and books available. We have never had a bad experience with a garage sale. And we've never made less than $200. We typically join in with our neighbors, and it is a great time to get to know them better as well.
Coupons. Coupons can save you a great deal of money every week. It takes some work to clip them, but it's well worth the trouble. Why not make coupon clipping a family affair? Coupons can also benefit a family when eating out. Civic or nonprofit organizations often put together books containing coupons such as two-for-one restaurant offers or 10% off your purchase at various stores. We have one in each car plus one at home. If we are unexpectedly away from home at mealtime we are not forced to pay full price -- we just pull the book out of the glove compartment and use a coupon.
Avoid recreational shopping. I have spent enough time in financial counseling sessions to know that people are not rational when they make purchasing decisions. Recreational shopping will cause you to buy items that you normally wouldn't buy. Shopping is like any other temptation. Don't put yourself in circumstances that will cater to your potential weaknesses. If you're going shopping, know exactly what you're going for, make a list, and don't deviate from it.
Libraries. Rather than buy books, our family is a faithful user of our neighborhood library. It's not unusual for us to have 15 to 20 books from the library in our house at one time. Libraries today loan books, have story hours, provide meeting rooms, and are a great environment for your children to spend time in. Besides saving money, libraries are a great way to instill in your children the love of reading, which will benefit them throughout their lives.
Repair vs. replacement. When we were preparing for the arrival of our fifth baby, as I looked at our crib my first thought was that it was rusty, beat up and just not suitable for our precious new baby. After a few hours of painting and the purchase of a new mattress cover, it almost looked better than when we bought it. The point is, don't be quick to think that you need a new item. Perhaps the old one can be repaired. Reupholstering furniture is another way to save. Often a reupholstered piece is better than new because the person who did the work has repaired and reinforced structural components and probably used better materials than when it was originally purchased.
Haircuts. People I know send their five-year-old to a stylist for a $15 haircut, and in our opinion, that money could be put to better use. So, every few weeks my wife has a haircutting night. If your family adopts this policy, my advice is to be one of the first to have Mom cut your hair. Usually, by the time the last one in line gets to the chair, Mom is tired and a little less careful, but hey, no system is perfect!
Create your own money-saving tips. Most people do not have an income problem but a spending problem. I trust these tips have been helpful and will spur you into some creative thinking on how you can save money in your own situation. What works for me may not work for you, but all of us can save money in certain areas, not sacrifice that much time, and perhaps even improve our quality of life.
On a final note, don't try to squeeze every penny out of every dollar and make saving money into some kind of "second religion." Our family tries to be good stewards in order to provide us with more freedom -- the freedom to be flexible in our budget, the freedom to give more, and the freedom to be spontaneous in our spending without being destructive to our overall financial plan. Balance is the key.
Published since 1990, Sound Mind Investing is America's best-selling financial newsletter written from a biblical perspective. To see how their specific saving and investing advice can benefit you, visit them online.
NOTE: News and information presented on this web site is for informational purposes only. ChristiansUnite.com does not necessarily endorse the views and opinions expressed.
