Chops Money

How to Save Money

Saturday, February 28th, 2009 | Uncategorized

When it comes to saving money there are only a handful of basic principles.  Once you learn them, you can apply them to any category in your life (such as cars, kids, pets, utilities, rent) and see new ways to save money.

1.)  Refusing to Buy Something

I know this sounds too simple, but refusing to buy something is the basis of saving money.  This applies mainly to things that you don’t need - fancy coffee, jewelry, designer clothes, etc.  Since a lot of people confuse wants with needs, I offer this simple test:  if you are thinking of buying something, just refuse it.  If you start to die, it’s a need.  If not, it’s a want.

2.)  Delaying Buying Something

There’s plenty of things that we can’t avoid buying:  food, water, toilet paper, etc.  But to save money, you can try to delay buying things that you need.  In the case of something like laundry detergent, this can be done buy cutting back on how much you use per load or choosing to wear an item of clothing another time before washing it.  There are plenty of frugality tips out there that offer detailed information on this, but it all boils down to saving money by delaying buys.

3.)  Replacing a Need With a Less Expensive Option

If you can’t delay buying a need, you can try to find the least expensive option or try to negotiate the cost of the need with whomever provides it.  For example, housing is a need but to save money you can negotiate the interest rate on your mortgage or the amount of rent you pay to a landlord.  This also covers using coupons at a store, or growing your own food.

4.)  Getting Somebody Else to Pay

I’m not talking about saving money by stiffing your friends on the restaurant bill.  There are a lot of times when you can take advantage of other people to avoid paying for something.  For example, if your employer offers tuition reimbursement you can use their money to save your own.  Or, if a friend owns a certain movie you can ask to borrow it instead of buying it yourself.

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