Saving Money by Spending Wisely

Each week you go to the same store, buy the same items, but something is different. Your total at check-out has gone up just a few cents, maybe a quarter or more even. You don't pay much attention and you really didn't think much of it when you noticed that toothpaste was a nickel higher, paper towels were a dime higher. But if every weekly item you purchase keeps going up by a nickel, a dime or even just a few cents, it sure adds up quickly at check-out.

There are some things we can do to keep these price increases from hurting so much, it just takes planning and a strategy. Buy in bulk whenever you can. Bulk items are cheaper than single packaged items. It may not make much sense in the beginning to buy a bulk pack of paper towels for $10 when you can get just one roll for $1.50. But more than likely the bulk pack contains 10 rolls of paper towels, so you save 50 cents per roll. These will last much longer too and cut out $1.50 of your weekly spending amount. Even if it's only an 8 roll pack, it saves you $2 in the long run. Check your prices, carry a calculator and find out how much you can save by having a plan and buying in bulk.

The key is to budget the extra it will cost in the beginning and plan out how often you need to spend $10 on paper towels so you always have an ample supply.

This method can work for any bulk item. Staples and canned goods are other items you can stock up on. If your grocery store is running a special on canned goods, buy plenty and store the excess in a closet. Sometimes it takes some planned investing, like purchasing air-tight containers to store staples like rice, flour, etc. in. But in the long run it's money well spent and over time can save you so much more than the initial cost of these items.

Planning:

Decide which items you'd like to keep in bulk storage. It could be flour, rice, sugar, or any item that you use a lot. After you have a list of the bulk items, decide how much extra you can afford, have space to store and how much you want to keep on hand. Instead of making an extra trip to the grocery store or local department store, just check the price on those items while you are already out shopping. Remember, you're in the planning stage.

After you've decided which items, quantity and how much storage space you have, it's time to plan acquiring the items. You've priced the right size container to hold the amount of dry goods you want, so now it's time to figure that into the budget. The most you should spend any week on getting your supplies in order is $15. That should get you a few containers and at least one bulk item. After all your purchases are made and you have everything you need, that $15 should go towards maintaining your supplies.

Also decide how much storage space you have available or can clear out for canned goods. When those items go on sale, it's time to stock up as many as you can. Plan that into your budget as well. If you set aside $10 this week for canned goods but they aren't on sale, hold onto that until the sale comes along, unless something else you need to stock up on comes on sale. It may be a juggling act in the beginning, but careful planning will help you manage.

Maintenance:

After you've gotten your system set-up and all your extra's stocked, it's very important to keep up with it. You may want to create a system of inventory--just like stores do. It can be a simple notebook with each item listed individually along with the date and quantity beside it. It doesn't have to be elaborate.This is how you know what you have on hand and when its time to replenish your stock.

Other helpful tips:

If you have children it's also important to teach them how to save money and spend it wisely. One day they may face the same challenges to the economy that we do today. The challenges they face may be even worse. One thing we've started doing is a quarter jar (or can). Each day you simply add one quarter to the can. Most people won't even miss a quarter a day. It'll only save $91.25 a year for one person, but if you're able to give everyone a quarter jar, it could be a nice vacation at the end of the year or a really nice Christmas present.

Another fun thing to do if you have small children is to start a "found" money jar. This jar is only for money you find laying around. It may be a penny or dime in the parking lot, it may be extra change that falls out of soda machine, but it has to be found. I've found that if you are on the lookout for 'found' money you seem to find it everywhere. This is really fun for kids, but I have to admit that I enjoy it myself, even if all I find is a dime. Not only is it like a game but it's also a challenge. The more we challenge ourselves, the more interesting life is.

Buy off-brands. Many people are convinced that store brands just aren't as good as name brands. I have to admit that I have a few name brand items I use regularly, not because they're name brand but because they are better. There are many things I buy that are store brand because I've discovered they're better than the name brand item. A good case in point is Dunkin Donuts coffee. I received a free sample, brewed it up and discovered that it tastes just like Clover Valley coffee. Clover Valley is the coffee sold at Dollar General. How many people are paying an outrageous amount of money for the famous name brand when they could be saving so much money by purchasing an off brand?

If you're new to off brand buying, do not stock up on ones you haven't tried. Buy one can or one item and give it a try. If you don't like it you haven't lost much money. If you find you do like it, you've saved yourself a ton of money over time.

In light of today's uncertain economic future, it's extremely important to learn good money management skills and how to get more out of your hard earned dollars. It also doesn't hurt to enjoy the benefits of someone dropping some change in the parking lot.