- 1). Develop a plan to save money by spending money. The first step is to set money aside in a spend-to-save fund. The purpose of a spend-to-save fund is to make sure you have cash when you find a great buying opportunity. This is especially true when you find a sale that really is a bargain. You don’t want to pass up major savings because cash is a bit short this month.
- 2). Cut your grocery and consumables costs. As a general rule, buy the largest size of any non-perishable product and buy a lot when it’s on sale. Larger sizes usually have the lowest per-unit prices. Occasionally that’s not the case, so take a calculator with you when you shop and check the unit price. The best deals will be on “loss leaders.” These are products a grocery or retailer marks down so low they lose money. They count on making up the loss by drawing in a crowd of customers who then get the rest of their groceries since they are already in the store.
- 3). Increase your savings on food by spending money for a freezer. This gives you the ability to buy frozen items, meat, and other products in large quantities whenever you see a real bargain.
- 4). Reduce utility bills by spending up front. Switch to compact fluorescent light bulbs. They last long enough to offset the higher cost and can cut your power bill by 7 percent. When it comes time to replace worn-out appliances, spend a little more to get an energy-efficient model.
- 5). Eliminate unnecessary costs by spending on better products. For example, investing in a digital camera will eliminate the cost of buying and developing film. Spend the money to purchase memberships in discount programs offered by businesses you patronize frequently. These can range from wholesale stores like Sam’s Club to spa memberships to retailer’s “preferred customer” clubs that offer discounts for a year in exchange for an up-front fee.
- 6). Buy off season. You may feel silly buying a bathing suit in November or a winter coat in April, but if you spend money to buy things ahead of time when they are out of season, you will save money in the long run with the great sales and clearance prices.
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