07th May 2009

Saving money, part 3

piggy_bankIn the last post we briefly talked about reducing shopping, thinking if really need what we are buying, and avoid buying items that we only buy because we are there; but having no need for or not planned buying.

I also briefly talked about my last section about me buying a new phone. There is another thing you should be aware of when buying a phone; some companies sell phones to a reduced price if you choose to use particular subscriptions from a phone company. Keep in mind; they are not selling you a cheaper phone; they fool you to pay the phone through the subscription. The subscription might eventually be more expensive than paying a normal subscription, and the full price of the phone. Please be aware it is hidden prices in subscriptions when you get an offer of much reduced price on a phone.

It is also smart to prepay callings; many phone providers sell you cards to refill your account. This will give you more control over how much you spend on your mobile phone. You might often use more than intended if you use a subscription where you pay after you have made the calls.

It might also help you avoid people getting hands on your phone to call expensive services of any kind.

Next on the list are of course brands. When we buy we are often influenced by marketing campaigns and pay more money than we really need for a product. This is valid for food, but also for computers and clothes as well. I would guess clothes would be most important in this context. We often look at brands celebrity’s uses, and we buy a product for 10-20 times of how much we need. But do these brands really give better quality than other? Do they give something more? Most often the question is no; we simply pay additional for the brand itself.

I am not asking you to buy the cheapest alternative; but to look carefully on every option you find. If its something you don’t use often you can buy the cheapest option, if it’s something you use often you should buy something of more quality; but we still don’t look at the brand alone.

I mentioned I just bought a cheap mobile phone. Probably the cheapest available; but it was because I didn’t want a camera or mp3 player. I don’t think it reduce the quality not having these features. But when I bought my last computer I probably paid more than I should; but for a simple reason; I would use it for image processing and software development, and therefore found a computer with stronger processor, and more RAM than ordinary computers. So I simply choose more expensive computer since it could reduce time when used the computer. I am not saying always choose the cheapest; but to evaluate what you really need before you buy it.

-Kentaki-

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07th May 2009

Saving money, part 2

piggy_bankIn my last post i saw briefly on how to pay down your loans faster, to get away from liabilities, and how to later use this money for saving, personal use and investments.

This time we are going to look a bit on mentality. It’s a simple technique that might save you additional money. The first step is normal shopping; many go to the shop on daily basis, and often buy items they had no intention to buy, neither do they need it. And yes; I often fall to trap myself; but have reduced days I go shopping food etc to avoid buying unnecessarily items I normally would have bought. It is also to be advised to be looking at prices; often there is a price variation on groceries that might save you lots of money by finding the cheapest from each shop. You should of course be aware of the danger of buying additional groceries and items as you might have to go to more shops than normally. You should also keep in mind the driving expenses it might include to buy a cheaper shop far away. If its far away you might lose money going there if it’s just one small item from another shop. Remember it also cost buying gas, and maintaining the car. Make sure you include transportation expenses when you go shopping as well.

Another advice is to ask yourself if you really need what you are buying. I don’t mean you should ask stop buy everything, but there is no need buying more than you really need. I can give a small example; recently the display of my mobile phone broke. I went to the local shop and tried get a mobile phone. Of course the seller wanted me to buy one of the newest Nokia phones, and of course he tried sell me the new iPhone.  But to be completely honest; I don’t need a phone with touch screen abilities, mp3 or camera. I have both mp3 player and a digital camera which a mobile phone can’t compare with. I had a small argument with two sellers, one started agree me with me, and the other kept coming with great arguments as “iPhone is cool”. Why should I buy a cool mobile phone? Why should I buy the most expensive phone on the market? I didn’t find any suitable phone that day; but some weeks later I found a cheap phone suitable for what I need: SMS and calling. It probably saved me for some hundred bucks, and it still works great!

-Kentaki-

Posted by Posted by Kentaki under Filed under Saving Money Comments 5 Comments »