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As
Seen in Newsweek,
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BetterBudgeting.com
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Black Belt Shopping Maximum Savings with Minimal Sacrifice Both the husband and wife loved steak, but were on a hamburger budget. Saddled with debt, they knew they couldn’t have steak on anything resembling a regular basis. * * * Imagine their excitement when they found a type of meat called a bar-b-que steak. They could buy enough to feed both of them for less than $5. The bar-b-que steak wasn’t quite as tender and was a little more fatty than the kind of steak they had learned to enjoy. But, they figured, that those slight shortcomings were small compared to the amount of money they saved, especially for something as impermanent as food. In finding that steak, this couple discovered an important principle of black belt shopping–astute shopping can allow you to save major amounts of money with a minor amount of sacrifice. The couple also recently found a no name type of dog food that has the same ingredients as the high-priced, name-brand dog food they had been using. No doubt they’ll find other ways to save major money with minor sacrifices. This balanced approach is quite different from two extremes I have seen with people who need to control their spending. One couple I knew that was in financial straits would only buy one brand of ketchup (the most expensive, of course) because any other was not good enough. They had the same inflexibility with expenditures far more significant than ketchup, buying a high priced new car when their budget called for a used car. Then there’s the other extreme of vowing not to eat out or have any form of recreation for two years until you clear out all the debt. This approach can be so unrealistic that people abandon their good intentions after a month or two. So what are some good minimum sacrifice/maximum benefit strategies better budgeters can employ? Here are a few to get you started. Buy books, software, and music used Given the many online sources, popular books, music, and software is available used at a fraction of the price that the item would cost new. As an example, I saw the 2002 World Book Encyclopedia CD–a favorite with homeschoolers–for $2.95 at half.com. Ebay and the used section of amazon.com are other good sources for used media. Consider used for major purchases High quality used will ultimately give you more satisfaction and cost less than poor quality new in many items. You may not get the new car smell if you buy a two-year-old car, but you’ll save 40% on car costs over the life of the car. If you’re not used to buying used, check out the classifieds in your paper. If you live in California, you may want to look to recycler.com for bargains. Consignment stores offer used merchandise, though at a slightly higher price than private parties. Thrift stores and yard sales are other sources of used bargains. Check out the dollar stores Stores like Dollar Tree and the 99 Cent Store are great places for ketchup, applesauce, snacks, blank videotape and other daily needs. If you have a large family especially, a stock-up trip to the local dollar store every few weeks can be a huge boost to the family budget. You may not always get the brands you are accustomed to (though often you will), but you will save mightily. Check out the closeout stores These are stores that buy odd lots, canceled orders, and other leftover merchandise. Some of it can be quite good and attractively priced. Sometimes the merchandise is a little more dated than the full-priced stores, but often now. Big Lots and similar stores will help you with housewares, groceries, and the like. TJ Maxx and Marshall’s emulate a department stores. Don’t forget the online closeout stores, such as overstock.com for bargains on closeouts, factory refurbished items, and others. These stores will really help you save. Wait for sales Items from food to furniture go on and off sale regularly in stores of all kinds. Using your local paper and the flyers that come in the mail will help you identify those sales. Consider sources beyond the obvious My friends found their bar-b-que steak at a local specialty grocery store. They looked beyond their local supermarket and even found a bargain in a store that rarely has bargains. Looking for providers outside the obvious sources might find you bargains. I get my clothing alterations from a woman who works out of her house rather than going to the local cleaners. Look for suitable substitutes for high-priced items This is what my friend did with steak. If you are accustomed to one of the more expensive brands of bread in your area, try a lower-priced one at least once. The same goes for film and other consumables. If you're a cable TV user, see if buying satellite works for you. Switching to a lesser known brand can save you with only minimal sacrifice. Look for ways to trim overhead Often just looking at the providers you use for basic services can save with only minimal sacrifice. I found a way to pay 2.5 cents per minute for domestic long distance by using onesuite.com, a pre-paid system similar to a calling card. I recharge online periodically and set one of my speed dials for the number, so it’s no trouble to make a call. I have to remember to recharge and I do have to hit the speed dial, but because I use a lot of long distance, the saving each month is worth it. Maximum savings through minimal sacrifice is a hallmark of the black belt shopper. Look for ways to apply that principle to your own financial life and you’ll reap the rewards mightily.
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Copyright © 2003 by Larry Wiener Want more money-saving tips? Get a FREE subscription to our monthly Ezine!
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