Family Finance – Save Money by Spending
The Internet is full of advice for getting control of your budget. Most focus on tips for reducing your spending habits and finding low prices, but the truth is that sometimes the best way to save money is to spend money. Read on to discover five ways strategic spending can put money in the bank.
1. Warehouse Club Memberships
Join a warehouse club like Costco, BJs or Sam’s Club. You’ll pay for the membership but rack up savings on food, clothing, books, furniture, and even vacations. Many items are sold in bulk at prices much cheaper per unit than you’ll find at the grocery store, and single unit items are discounted as well. Just be sure you don’t undermine your savings by buying more than you’ll use of anything perishable.
2. Newspaper Subscriptions for Coupons
Extreme coupon shoppers have used this secret for years. The Sunday edition of the newspaper generally includes one or more major coupon inserts. While you only need one paper to catch up on the news, you’ll want multiples for maximum coupon shopping. Experts recommend getting four to six Sunday paper subscriptions. Find a tutorial to learn how to use the coupons strategically for maximum savings. If you’re doing it right you’ll recoup the cost of your papers in no time and will soon be saving big on everything from toothpaste to frozen food.
3. AAA Membership
While it will cost a few hundred dollars up front, AAA membership can save you money in the long run, and not just in the event of a flat tire or engine problem. Members can also save on over 100,000 other goods and services in the U.S. and abroad, including hotels, cruises, car rentals, and restaurants. The membership even provides discounts for events, attractions, amusement parks, zoos, and aquariums.
4. Make Upgrades to Your Home
There are many ways to turn your home into an energy-saving machine, but you might have to spend a little up front to make it happen. Take a tour of your house and take note of any of the following:
- Leaky faucets
- Drafty doors and windows
- Poor insulation
Hire a handyman or, if you’re handy yourself, head to your local hardware store for some supplies to fix these energy wasters. Buying energy efficient appliances and light bulbs can also save money in the long run. Washers, driers, dishwashers, refrigerators, and even toilets come in models that are friendlier for the environment and your wallet.
5. Insure the Assets You Have
Underinsuring your car and home may cost less month to month, but in the event of an accident, fire, or theft you could wind up paying much more out of pocket than you would have if you had maintained adequate coverage. Also, be aware that some events, including floods and earthquakes, are not covered in a standard policy and additional coverage may be necessary to be truly protected. Phoenix insurance agents will have different recommendations than those in San Francisco or Wichita, so homeowners should speak to an agent in their own area to discuss local hazards.
Don’t let shortsighted thrift keep you from long-term savings. Follow these tips and a penny spent will be a penny earned.