Editor's Note: To see part 1 of this article, which appeared yesterday, click here.
Easy practices and habit changes can make a significant impact on your family budget.
Check the ads before you buy.
Whether you are looking for groceries or electronics, it pays to check the ads. Buy at the lowest price and if you don't see the price you can afford to pay, don't buy until the price comes down to a level you can afford. If you are patient enough, the price always comes down.
Patience is its own reward. We have sometimes watched ads, checked stores, and waited a year or more to purchase an item at a price we could afford. We have never been sorry we waited. Patience, in purchasing, carries a huge reward and saves untold amount of dollars. Remember that markets fluctuate and demand determines price. Being the last one on the block to purchase the newest technology is not foolish, it only makes sense. Not only will the price be lower but the technology will be much improved. New technologies are always full of bugs which have to be worked out before they can perform at their maximum.
Even after you have made a major purchase, don't stop checking the ads. If you find your item goes on sale at the store from which you purchased it anytime within ten days to a month, depending upon store policy, you can return with your sales slip and ask for a price adjustment. Most companies will honor your request.
Look for pre-owned, house brands, and off-season.
Steve was in the market for a tool chest. He knew what he wanted but he didn't like any of the prices. He went to a major retailer and asked if they had any returned tool chests in their warehouse. The clerk told him he didn't know but he'd check. He returned a short time later.
“I have five,” he announced. “Come with me and I'll show them to you.”
Steve followed the clerk into a basement. There were five tool chests. Some were slightly scratched, some were dented and one was sold at half price because it lacked the wheels.
“I'll take the one without the wheels,” he told the clerk, “I'll find some wheels at a hardware store and put them on myself.”
Steve took home his half-price tool chest. As he opened the drawers at home, imagine his surprise when he found all the wheels taped to the bottom of one of the drawers.
Most stores will offer open boxes, display, and returned items at fractions of their original price. You can buy everything from clothing to furniture if you ask to see deeply discounted items. Some companies will take defective equipment and have it repaired or reconditioned. They will in turn offer it to the public at a fraction of its original cost with complete, original warranty. Take time to study each item before you purchase it and make sure it is certified by the manufacturer and that the warranty is in full effect. These kind of sales are final so research before you buy. We've found fabulous deals by using this method and so can you.
House brands can be purchased for far less than name brands and are generally no less quality than their higher priced counter parts. Some house brands are identical to name brands because they are name brands sold under the store label. Also, house brands dip even lower when they are sold on clearance at the end of a season because the store can reduce its own prices lower than it can reduce name brand items.
Contractors and home repairs can also be done in off season for far less money. New cars can be bought at their lowest price just prior to the release of a new model year and the same is true for RV's and appliances. Know when prices are low and arrange to purchase when the price is at its lowest.
Cut the luxuries and look at the small stuff.
Own what you can afford. Everyone wants a beautiful home, but is a huge, fashionably decorated home with a mortgage you can't really afford worth sleepless nights? If the car you own still runs well and is dependable why trade it in for one that is only shinier and newer and may not be nearly as dependable? Cars and homes are the biggest debts most families carry. Take the money you might spend on that late-model car and bank it for your kids college, or get by with less of a home and sock the extra money into your retirement or into a mission fund. If you save in one area you'll have money in another and, at the end of the day, will it really make that much difference in the happiness you will feel?
“‘Folks can cut 20 to 30 percent of their expenses by looking at the small stuff,' says Ric Edelman, author of Ordinary People, Extraordinary Wealth. ‘You don't need all those premium cable channels,' he says. . . You need to recognize that you're throwing away money on things that have no long-term impact on your life.'” 1
Don't pinch pennies so tight that money becomes a weapon.
For five years, Sally's food budget never varied despite numerous rises in prices and several large increases in her husband Stan's, salary. Eventually, it became impossible for Sally to buy enough food for her growing family with the money Stan allotted her. Stan refused to listen. Finally, Sally reached a breaking point.
“I can't do it any more. I have stretched it as far as I can stretch it. There is simply not enough food to last us the month.” she pled.
“No!” Stan was emphatic. “I will not give you a dime more. You'll just have to find a way.”
Sally resented her husband and her feelings towards him became more bitter. She mourned her stingy budget and she felt totally powerless.
A family plan must be a family plan! Every person's needs have to be taken into account. No one person has the right to dictate the entire terms of a family budget. A plan must take into account ever-changing prices and ever-changing needs. Money is not a weapon and no one person has the right to wield it for power!
Remember that having the road to an abundant life is not a straight one.
No matter how hard you try, no matter how well you have mastered the art of planning, you will have set backs. There are always expenses you didn't plan for, repairs you never anticipated, and emergencies you couldn't foresee. Medical problems, unemployment, major home and automobile repairs, or countless other potentially catastrophic circumstances can rear their ugly heads at any moment. Just remember to keep doing what you have learned to do. Keep pursuing a debt-free life and never give up. If you have to wait a month or two to catch up with expenses instead of paying down your debt, do not despair. Just begin anew each month and keep your focus on that debt-free life. Over time you'll become better at saving money and if you continue to deposit money into your rainy-day fund, you'll one day have enough to cover almost any unforeseen expense.
Laurel and Mark were well on her way to being debt-free when Mark had a sudden heart attack. The medical expenses were large. Adjustments needed to be made to their lifestyle. For two years, Laurel could not work on paying down her debts. She fretted over it for a long time and then one day she realized that she had already paid nearly all her debt and had saved enough money that she never had to borrow a penny to meet the medical expenses. Her goal was realized a few years later than she had originally anticipated, but it was eventually realized.
You will find you have a different attitude toward money. You will have profound respect for the value of money and you will find yourself not slavishly devoted to every whim or fad that comes along. Even when you come into a sudden windfall you'll be more inclined to save it than to spend it. Nonetheless, you will want to spend some just to make life more fulfilling–it's just that you'll be more selective of where you spend it.
Assess yourself honestly from time to time. Are you still taking the time to plan your spending? Are you recording your spending in a timely manner? Are you still discussing your dreams and saving money for the fulfillment of them?
Of course, you won't always be perfect in your spending habits. Of course, you'll buy on an impulse from time to time and sometimes you will feel compelled to do so. That's okay if the abandonment of your plan is occasional and if you are still in control. Everyone occasionally needs something new–clothing, vacation, even just a variety to the things they spend their money for. Everyone needs breathing room.
Remember at all times that your hopes and your dreams are under your control if you keep control. You don't have to give up all the positives of your life to achieve financial security. Success is built a moment at a time, a day at a time, a month at a time, a year at a time. Keep your goals uppermost in your mind and never abandon your dreams. Concentrate on what you want, be positive, and keep the course. Someday you will realize your dreams.
Be flexible and adjust your spending plan whenever it is needed to fit the needs of you and your family. It needs to be said that some people become penny pinchers to the extreme. Even though we've emphasized that ‘a penny saved is a penny earned” remember that if you deny yourself too much you'll soon abandon your plan and you'll never realize your dreams. Furthermore, if you deny yourself to the point of punishing yourself or your family, you'll reap not dreams but resentment and heartache. You must be flexible in order to live a full life on half the price.
Take the time to nourish and reward yourself. If you really want something, find a way to have it just find it for less. If you want to splurge now and again, build it into your budget. If you need a vacation, take one you can afford without an aftermath of guilt. Don't make yourself a martyr and don't become a slave to either your job or your spending plan.
Enjoy life on a budget you can afford. Adhering to a spending plan doesn't limit your choices; it expands it and empowers you to spend money on what you need and want without feeling any guilt or remorse in doing so. Never deny yourself necessities and never deny yourself forever the things you desire most. Sometimes our wants may be delayed in coming, but they should never be held beyond your reach. Remember that the choice of how you spend your money is your choice and your family's choice and no one can tell you how or what you must spend it for. You must be flexible and you must be in charge.
