Seven Ways to Save an Extra $10,000

[AwayWeGo]

Click here for the practical, money-saving tips.

Note: Timeshares are not mentioned. If they were, the advice would be Buy Resale - Save Thousands.

Full Disclosure: The Chief Of Staff & I have been following pretty much that pattern since we took our vows in 1964. Otherwise our net worth would not be what it is today. Is this a great country or what ?

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[pkyorkbeach]

great article
some of the suggestions I already do

 

[Passepartout]

I have practiced virtually all these suggestions over my lifetime. About the only one I disagree with is buying used appliances. Nobody gets rid of perfectly good appliances. I will buy 'scratch 'n' dent' ones if the imperfection can be hidden in use, or last years' new model, deeply discounted when new models come out. I feel that having a guarantee for the first few years of ownership is worth the additional price of buying new.

These tips and more have allowed me to retire early, and securely, even though my income during my working years was by most measures pretty modest. Judicious investment didn't hurt either.

Jim

 

[AwayWeGo]

Au Contraire, Mon Frère.

I have practiced virtually all these suggestions over my lifetime. About the only one I disagree with is buying used appliances. Nobody gets rid of perfectly good appliances. I will buy 'scratch 'n' dent' ones if the imperfection can be hidden in use, or last years' new model, deeply discounted when new models come out. I feel that having a guarantee for the first few years of ownership is worth the additional price of buying new.

Except for dishwashers, we get'm all used. We save hundreds, & we have minimal problems.

Plus, even without any special expertise, we manage to do most of our own trouble-shooting, & even a few repairs. (Although these days, "repairs" mainly means parts replacement.)

When they're repair resistant, we give'm away free on Craig's List or take'm out to Mt. Trashmore in the minivan. Then we shop for replacements on Craig's List.

Full Disclosure: I took a night school course in Major Appliance Repair about 35 years ago. Not much of what was taught has stuck with me -- just enough to minimize most fears of malfunction.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[Passepartout]

Except for dishwashers, we get'm all used.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

Obviously your comfort level differs from mine as far as used appliances goes. I doubt either of us will change our ways/opinions based on the above. Perhaps my choice of purchasing new will fuel your supply of used.

I'm glad we both have the choice. What a country, no?

Jim

 

[ace2000]

Very nice article Alan. I believe in the concept. However, we did break down and purchase a new car a few months ago. Other than that, we look at CraigsList first.

A few years back, we had a problem with our icemaker in the fridge. The cost to replace the icemaker was $200. After looking at used refrigerators on CraigsList, we purchased a newer and nicer fridge for $200 and the icemaker was included!

 

[geekette]

I bought a used clothes dryer for $100, delivered, in the late 80s that I left with the house I sold in 2001, still worked.

But I also will generally buy new appliances. I love scratch n dent deals!!

I will likely never buy a used dishwasher or clothes washer. I suppose that most anything else is fair game.

Other elements of the article - I often bring lunch, usually leftovers, but sometimes want to have something different, quick, easy, let someone else fix my lunch for me. It does add up, and also costs me time.

no Starbucks habit. Folgers + Mr Coffee is good enuf for me.

401k - yes; also have portion of each paycheck directed to "regular" savings. Pay Yourself First is one of those things that people seem to eitehr Always Do or Never Do.

Some years back, a young married lady at work would not do the 401k plan because she "couldn't afford it." I convinced her to just put in 1% "to see" and it turns out, she didn't miss that money at all! Over the course of that calendar year she slowly increased the % to reach full match from the company (always good to remind people that they are leaving FREE MONEY on the table if they don't use 401k). I don't know whatever becaem of her, but I hope that when she left the company, she left the money in the 401k. too many people Cash Out (these days, it's understandable as retirement money is too often having to go towards current livign expenses)

Good article in doing the math "over the course of your working life." Appallingly large numbers!!

 

[MuranoJo]

No Starbucks habit for us either.
We don't buy used appliances, but my sis does get the dent 'n scratch kind or inherits them from us when we upgrade. She does laundry almost every day with 2 teenagers in the house so she goes through used washers every few years it seems.

Automatically deposit at least the max amount the company matches into the 401k and have been for about 26 years.

Previous job while I was going through school also offered a company match but DH felt we could 'do better' by investing the money on our own. So much for that idea: Of course we had nothing to show for it because somehow we always used the money. After that experience, I signed up for the 401k as soon as I joined my current company many years ago.

 

[dioxide45]

For groceries, buying bigger sizes is not the answer to save money. If you watch sales and utilize coupons, you can save big on groceries. You have to be willing and have room to stock up on items when they go on sale. You buy enough to get you through several months to a year.

I am not talking about those extreme couponers, though they save a bundle also. But just making smaller purchases and buying goods when they are on sale instead of when you go grocery shopping.

Take chicken for example, about once every two months or so a local grocery store has chicken breast on sale for $0.99/lb or quarters for $0.69/lb. If you have room in the freezer, that is the time to stock up, and no coupons necessary. When we hit Sam's for IQF chicken, it costs over $1.99 per pound for a 6lb bag. Though we do tend to buy that over the stuff on sale at $0.99/lb just because we like it so much better. If you aren't picky though, you could be saving 50% or more by watching for the sale, not buying in bulk.

 

[JeffW]

Used cars not always as easy as it sounds. The article says if you buy used, it'll cost 1/2 as much. I bought a new car 5 years ago (2006 Acura TSX @ $30k). If I had set a budget of $15k, I would have received a drastically different vehicle.

I know for both that car, and my previous one, I looked at 'relatively new' (~2 yrs old). Maybe it was just the cars I was looking at, but to get a non-new car, with low mileage, and looks to be in like-new shape, the prices wasn't that much less than new. If anyone else has looked at "certified pre-owned", you might agree that in some cases, the prices aren't that much lower than new. Lower in absolute dollars , yes. 1/2 off, no.

Jeff

 

[Elan]

For groceries, buying bigger sizes is not the answer to save money. If you watch sales and utilize coupons, you can save big on groceries. You have to be willing and have room to stock up on items when they go on sale. You buy enough to get you through several months to a year.

I am not talking about those extreme couponers, though they save a bundle also. But just making smaller purchases and buying goods when they are on sale instead of when you go grocery shopping.

Take chicken for example, about once every two months or so a local grocery store has chicken breast on sale for $0.99/lb or quarters for $0.69/lb. If you have room in the freezer, that is the time to stock up, and no coupons necessary. When we hit Sam's for IQF chicken, it costs over $1.99 per pound for a 6lb bag. Though we do tend to buy that over the stuff on sale at $0.99/lb just because we like it so much better. If you aren't picky though, you could be saving 50% or more by watching for the sale, not buying in bulk.

Your idea is only practical if you're close to all of the stores that have things "on sale" and shop there regularly. You can spend more than you save driving to all of the "sale" locations.

We definitely save money buying bigger sizes. Often meat is only on sale in very large "family packs". Enough to feed a small army. We'll buy in that size and vacuum seal it into multiple smaller servings.

 

[Elan]

Used cars not always as easy as it sounds. The article says if you buy used, it'll cost 1/2 as much. I bought a new car 5 years ago (2006 Acura TSX @ $30k). If I had set a budget of $15k, I would have received a drastically different vehicle.

I know for both that car, and my previous one, I looked at 'relatively new' (~2 yrs old). Maybe it was just the cars I was looking at, but to get a non-new car, with low mileage, and looks to be in like-new shape, the prices wasn't that much less than new. If anyone else has looked at "certified pre-owned", you might agree that in some cases, the prices aren't that much lower than new. Lower in absolute dollars , yes. 1/2 off, no.

Jeff

Although I haven't gotten serious about shopping for a new truck, I have been browsing Craigslist, eBay and local dealer ads and I concur with your findings. A 2 year old model with ~20K miles is only about $3K (~10%) cheaper than a comparable brand new vehicle.

 

[Passepartout]

I have been browsing Craigslist, eBay and local dealer ads and I concur with your findings. A 2 year old model with ~20K miles is only about $3K (~10%) cheaper than a comparable brand new vehicle.

I saved $15k under sticker- $8k under KBB on the '10 Tundra I got last Summer. And the dealer threw in mats, bed liner, clear bra and other stuff. Try www.cars.com

Jim

 

[dioxide45]

Used cars not always as easy as it sounds. The article says if you buy used, it'll cost 1/2 as much. I bought a new car 5 years ago (2006 Acura TSX @ $30k). If I had set a budget of $15k, I would have received a drastically different vehicle.

I know for both that car, and my previous one, I looked at 'relatively new' (~2 yrs old). Maybe it was just the cars I was looking at, but to get a non-new car, with low mileage, and looks to be in like-new shape, the prices wasn't that much less than new. If anyone else has looked at "certified pre-owned", you might agree that in some cases, the prices aren't that much lower than new. Lower in absolute dollars , yes. 1/2 off, no.

Jeff

If you have to finance the car, new or used. The financing deals won't be as good for a used car as they would be for a new car. So that is something else to consider. Recently, used car prices have been rather high because of a reduced supply of used cars due to the cash for clunkers program.

 

[dioxide45]

Your idea is only practical if you're close to all of the stores that have things "on sale" and shop there regularly. You can spend more than you save driving to all of the "sale" locations.

We definitely save money buying bigger sizes. Often meat is only on sale in very large "family packs". Enough to feed a small army. We'll buy in that size and vacuum seal it into multiple smaller servings.

This tends to work for us as we live one highway exit away from a road that has three grocery stores (Walmart, Kroger, and a local brand) within a mile of each other, there is another (Meijer) that is about a mile further down the road. If we wanted to visit a Costco, it would be about a 45 minute drive for us, though we do have a couple Sam's club locations.

 

[ScubaKat]

I was laughed at when I was fresh out of college at 20 years old asked for a 401(k) account (during an interview at a small biotech start-up).. They did get that set up for me and funded 3% + my contributions every year.. worked with them for 12 years! I guess the article is leaving out purchasing a home for money savings vs. rent in today's economic climate but closing on my first townhouse at 23 and renting out the spare to a roommate to pay for the mortgage was a top 10 for me..

I did buy my car brand new.. but bought it in October when they released the following year's models.. got it for 3k under invoice and close to 10k under MSRP.. It worked out to be cheaper than kbb's used private party value.. Also walked in with a pre-financed blank check with an interest rate of 1.99% so we wouldn't get muddy math from the dealers and we got another 1k off for dealer "cash" incentives.

I also coupon and aim for 50% of savings.. we only shop at one grocery store but I do stock up when there is a good deal.. hubby has finally been converted when I still get his "brand named" things cheap... :rofl: He used to not believe in sales and only bought everything retail as he thought that sales were left over junk that nobody wants..

 

[Elan]

I saved $15k under sticker- $8k under KBB on the '10 Tundra I got last Summer. And the dealer threw in mats, bed liner, clear bra and other stuff. Try www.cars.com

Jim

If comparing to sticker, then I agree. But I recently stopped by our local Ford dealer and they had brand new 2011 4WD F150 Lariats discounted to around $32K. When I look for used (yes, I looked on cars.com also), I can't find anything significantly better than that deal. Maybe $28K for something 2 years old or less with low miles. Admittedly, I haven't haggled on either deal, but the savings just doesn't seem to offset my ability to pick the options I want and have a full factory warranty. Perhaps I'll find differently if/when I get more serious about buying.

 

[dioxide45]

If comparing to sticker, then I agree. But I recently stopped by our local Ford dealer and they had brand new 2011 4WD F150 Lariats discounted to around $32K. When I look for used (yes, I looked on cars.com also), I can't find anything significantly better than that deal. Maybe $28K for something 2 years old or less with low miles. Admittedly, I haven't haggled on either deal, but the savings just doesn't seem to offset my ability to pick the options I want and have a full factory warranty. Perhaps I'll find differently if/when I get more serious about buying.

I think part of the problem is the current market conditions. In the past a 1 or 2 year old car with low mileage would be heavily discounted (24-35%) over a similar new car. That has changed recently because of used car inventory supply, but I would expect in the next few years things will start to get back to "normal".

 

[Elan]

This tends to work for us as we live one highway exit away from a road that has three grocery stores (Walmart, Kroger, and a local brand) within a mile of each other, there is another (Meijer) that is about a mile further down the road. If we wanted to visit a Costco, it would be about a 45 minute drive for us, though we do have a couple Sam's club locations.

Where we live (on the far end of town, away from the major shopping), it's just not practical to drive very far for deals. Not only in gas, but also in time. Our Costco and Walmart's are across town (which is only about 20 minutes when you live in Idaho ). But even when we venture to that side of town, if often doesn't pay to hit some of the other "sale" stores because of the traffic & time req'd. With kids, I put as much of a premium on time as I do money, I suppose.

 

[Elan]

I think part of the problem is the current market conditions. In the past a 1 or 2 year old car with low mileage would be heavily discounted (24-35%) over a similar new car. That has changed recently because of used car inventory supply, but I would expect in the next few years things will start to get back to "normal".

I agree. I think right now is an anomaly in the used/new price ratio. Fortunately, I don't need a different vehicle right now. I still intend to buy used, but if I had to buy right now I'd have to consider buying new.

 

[Mel]

We do almost all as well - some appliances we buy used, some new - not so much because of cost, but if you can find good quality used, they are better than many of the new appliances on the market. So much of the new stuff is designed to be tossed when it stops working, not repaired.

Lat year we attended a financial aid program at a local high school. The speaker was the financial aid officer for a local private university. Part of his presentation involved telling parents not to be surprised when the FAFSA comes back ans they are told they can afford a family contribution of $25,000 a year. He then went on to explain how these families are supposed to come up with $25,000. Needless to say, we already do most of what he suggested (things like cut the cable bill down to $50 a month, rather than $150). We decided we must not be as well off as the other parents in the room, because we don't have all these places to "find" money - so maybe we won't be expected to kick in $25,000 per year.

But what amused us was one of the things on his list - vacations. He didn't suggest cutting vacations out of the budget, just cutting back on the cost. And how did he suggest doing that? One option was to see if you knew anyone who owns a timeshare, and ask if you can use their week in exchange for paying their annual fees, or buying one, if you can find one you like on the resale market. Then, futher cut those vacation costs by not eating every meal out. Sound familiar?

 

[JeffW]

We do almost all as well - some appliances we buy used, some new - not so much because of cost, but if you can find good quality used, they are better than many of the new appliances on the market. So much of the new stuff is designed to be tossed when it stops working, not repaired....
One option was to see if you knew anyone who owns a timeshare, and ask if you can use their week in exchange for paying their annual fees, or buying one, if you can find one you like on the resale market. Then, futher cut those vacation costs by not eating every meal out. Sound familiar?

I just repaired (myself) my 18" dishwasher for the 2nd time. I think about $120 both times. I would have gone new this time, but I looked at new units, and didn't like them. They were smaller inside than my old one, and I didn't want to give up the room (smaller, in the sense that some larger pieces woudn't fit in).

In terms of timeshares for vacations, there are few if any posts where timeshare owners complain about actual timeshare vacations. It's more often the fact that they stop taking vacations that, but still need to pay annual fees, that's likely what most likely giving them the bad press now a days.

Jeff

 

[PigsDad]

If comparing to sticker, then I agree. But I recently stopped by our local Ford dealer and they had brand new 2011 4WD F150 Lariats discounted to around $32K. When I look for used (yes, I looked on cars.com also), I can't find anything significantly better than that deal. Maybe $28K for something 2 years old or less with low miles. Admittedly, I haven't haggled on either deal, but the savings just doesn't seem to offset my ability to pick the options I want and have a full factory warranty. Perhaps I'll find differently if/when I get more serious about buying.

I think it also highly depends on the vehicle you are looking to get. There won't be as good of deals for higher-demand vehicles, obviously. In '04, my wife got an '03 Taurus w/ 18K miles for less than $10K, when a new one was about $22K. A lot of companies used Tauruses for fleet cars and (at that time at least) only kept them for a year, so they would flood the market w/ 1 year old cars. Now I think companies are keeping fleet cars for 2-3 years (I know my company has done this), so I don't think these deals are quite so good anymore. Rental agencies seem to be keeping their vechicles longer too, thus reducing the used vehicle supply.

The time of great late model used car deals has passed, at least for the time being.

Kurt

 

[funtime]

I think part of the problem is the current market conditions. In the past a 1 or 2 year old car with low mileage would be heavily discounted (24-35%) over a similar new car. That has changed recently because of used car inventory supply, but I would expect in the next few years things will start to get back to "normal".

I agree the discounts are not there. I was surprised that my "discount" for a nice camry one year old and 12,000 miles was only about 1,000 to 1,500 less than new. However, it was end of the year and the used car was perfect for me - my color, sunroof that I wanted etc. It was the car I wanted and the newer cars were more picked over. I still love it but I agree it was not a steal of a deal. Funtime

 

[geekette]

for cars, new vs used has some other factors, too - maintenance & repair. the numbers don't stop at sale price. Insurance is also cheaper on an older car.

If I buy used today, I expect it to be 2 years before I see the same wear/tear maint items that may be needed now on a 2yo.

I expect perfection from a new car with all being covered by warranty. used, well, what happens happens and it's on me to fix.

There will always be much more to consider than sales price in a car buying decision for me.