Kroll Timely Tips for Tight Times
Kroll’s Timely Tips for Tight Times
1. Use cash not credit cards. Not only will you save the interest charges, you will spend 34% less. Most people do not have the discipline to use a credit card as cash—paying it off every month. Also, there may be a discount for cash. Don’t be afraid to ask!
2. Rent temporary items. Equipment, major tools, vacation cottages and boats are generally not used enough to offset maintenance, depreciation, obsolescence, and personal property taxes. Rent them instead of buying them. Normally owning your own home and car is better than renting. If you’re only going to be in that location for two or three years, it’s usually cheaper to rent an apartment than buy a house—unless you buy a fixer-upper.
3. Shop around. For major purchases (home, car, appliances, furniture, tools, etc.) take time for planning and research. Get the facts. Check Consumer Reports (at the library). Ask experts for their opinions (mechanic on a car). Compare prices. Get several estimates. Do not try to squeeze every penny out of every dollar. Being a valued customer is often better in the long run than saving a couple pennies.
4. Buy used goods. If you do your homework, purchasing used items is not as risky as it seems. Plan well in advance for purchases (car, TV, stereo, freezer, furniture). If you shop months before replacement is necessary, you need not make a quick decision, go in debt and then spend months or years regretting it. Shop yard sales and garage sales. Someone else’s junk may be your treasure. Yard/garage sales in better neighborhoods will often have excellent furniture, appliances and clothing at a fraction of the original cost. Don’t forget to check the “want ads” and bargain shoppers.
Items to buy used: Sports equipment, musical instruments, designer accessories, hand tools (Be careful with power tools, check factory-reconditioned tools, i.e. bosch.cpotools.com/reconditioned), boats, books, camera lenses, furniture, DVDs, jewelry and cars (unless you will keep it for 10 years). For a new car check bestnewcarprice.com.
Items to buy new: Cribs, tech items (computers, digital cameras, plasma screens, DVD players, cell phones), appliances, microwaves, and mattresses.
5. Go slow. Don’t be in a hurry. Impulsive buying is one of the major causes of debt. Do you really need it? Think about it. Pray about the purchase. Discuss it with your spouse, or parents.
6. Buy generic brands. Many generic brands or store brands are made by the name brand manufacturer with the same quality. Occasionally generic quality may not be as good, but the savings will be well worth it. Designer clothing is a rip‑off.
7. Buy in quantity. Anticipate your needs and buy in quantity (i.e. paper products, cleaning supplies, motor oil, canned and frozen foods etc.). Stock up during clearance sales. Membership warehouses often have the best price for quantity items (Be careful, they are also often higher on single items).
8. Bargain. Don't be afraid to negotiate the price on major purchases. Ask your local merchant if he will match the advertised price of a competitor. Many will and you will save time and mileage.
9. Shop seasonally. Stock up on Christmas, birthday, anniversary, and other special gift needs during the end of the season sales, white sales, etc.
10. Reduce consumptive items. Lower the thermostat in the winter, and raise the air conditioning in the summer. For years we kept out thermostat at 58 in the winter and 78 in the summer. In forty years of marriage we have saved over $25,000 in utility bills and probably the same amount in doctor’s bills. Turn off lights, conserve water, improve insulation, etc. Prepare what you want to say in advance and time your phone calls.
11. Use coupons. Watch for coupons for items you use regularly. Twenty-five cents off brand items you use is a better deal than seventy-five cents off some higher priced brand you don’t use. Check restaurant.com, smartsource.com and coolsavings.com to copy and print coupons.
12. Do‑it‑yourself. Services are generally costly due to the high cost of labor. Borrow a do‑it‑yourself book from the library, and tackle the project yourself. However, if you do not have the expertise or the equipment, you will need to have it done (also see point #16). Avoid extended service contracts—they are usually overpriced.
13. Use deductibles. Co‑insure yourself by using higher deductibles on home, auto and health insurance. Although it may be more expensive in a given year of need, over the long haul it is much cheaper.
14. Reduce taxes. Tax evasion is a criminal offense, but tax avoidance is good stewardship. We should pay our fair share, but no more. Don't overpay on withholding taxes and quarterly tax estimates. Getting a refund check is a sign of poor planning and poor stewardship.
15. Shop around for food. Every few months grocery stores will have whole sirloins on sale. For the price of ground beef you can have roasts, steaks or ground sirloin. Plan it in your budget and it won't be a shock on one week's budget. Eat leftovers.
16. Network with friends. Share baby-sitting with another couple. Baby-sit their children and in turn they can baby-sit yours. Trade services. Do something for someone else using your area of expertise and they can do something for you in return using their area of expertise.
17. Compare travel bargains. Check travelaxe.com for hotel rate comparisons. Check GasPriceWatch.com and GasBuddy.com for station price comparisons. Check eBay for coupons and unused passes. Scan the theme parks’ websites for last-minute bargains. Check discount travel sties like, expedia.com, vacationstogo.com, Travelocity.com, and hotels.com. You can find anything on the mega-search engine, dogpile.com.
18. Stop unneeded expenses. Some unneeded expenses are library fines, parking tickets, car repairs due to failure to have regular servicing, etc. Plan ahead and save.
Other useful web sites: allthebestinvitations.com, discountcoffee.com, addall.com, HomeExchange.com, Intervac-online.com, Homelink.org, Overstock.com, Ebates.com, FatWallet.com and GetOrganizedNow.com.