This post is part of a series called the 30 Steps Program to Financial Independence.
Yesterday, I discussed prioritizing your spending by making a list of what’s important to you and allocating a larger portion of your income to those things. Meanwhile, for secondary or unnecessary expenses, you should cut back.
Personally, my priorities include traveling, eating well, and investing in quality, reliable items. For these, I’m willing to spend more. For instance, I ride a 2010 BMW motorcycle, which I bought a few months ago for over $10,000. I needed a dependable bike for a 15,000-mile journey across Europe. After using it for 12,000 miles, it has performed flawlessly with no issues. Opting for a cheaper bike might have left me stranded with technical problems.
Although I spent a significant amount on my bike, I ensured I didn’t overpay. This brings me to my point: try to find important items at the lowest possible prices. For example, I furnished my three-bedroom flat for about $1,000 by finding quality pieces on Craigslist at heavy discounts. Similarly, when I need a new laptop, I research thoroughly for the best and cheapest options that meet my needs. My current laptop is compact, sturdy, and reliable. It’s been through a lot, from getting wet to withstanding various climates, and it still runs well after almost three years. I bought it for about $350 by shopping strategically, waiting for sales, and using coupons.
When you’re ready to spend a certain amount on an item, aim to reduce that amount by finding discounts, free delivery, or additional offers. Here’s how:
1. Search Extensively: Whether it’s for a plane ticket, a household item, or a new dress, there’s likely a promotion or sale. Look for coupons, bulk purchase offers, and special deals.
2. Be Flexible: Define what you need in broad terms. For instance, I looked for a compact and durable laptop without focusing on any specific brand or color. This flexibility helped me find a great deal.
3. In-Store Research: If you need to try an item or seek advice, go to a store, then conduct online research. Apps that compare prices can be handy, allowing you to negotiate better prices in-store. I prefer to research at home to make a cool-headed decision.
4. Negotiate: Don’t hesitate to ask for special offers, free extras, or discounts for paying cash. The worst that can happen is being refused, allowing you to take your business elsewhere.
5. Buy Display Items: Items on display in stores often come at great discounts and have the same guarantee as new items.
6. Know What You Need: If you only need certain features, don’t pay extra for unnecessary ones. My basic requirement for a laptop is long battery life since I often find myself without power outlets.
7. Use Cashback Sites: Sites like quidco.co.uk in the UK or igraal.fr in France can give you a small percentage back on your purchases. I’ve received about $600 back in the last three years.
By following these simple steps, you can save money while still getting the items you want.