Wednesday, November 14, 2007

Bargaining through life to save a buck

I wonder how you manage your financial affairs?

How are your investments going and what approach do you have in your own personal financial situation?


http://www.takeourword.com/images/miser.gif


Let me share with you some of the things that I do to make or save a buck. Most of them are elementary and you probably do them anyway but hey its my blog and Ill rant if I want to.

My employment gives me a very good income but that is no excuse to waste your valuable shekels because your make more money than others, a penny saved is a penny earned and all that.

I know people who earn way more than I but they seem to think that it is their mission in life to waste their money, simply because they can afford to. Either they have been wealthy all their lives or if self made, have forgotten how hard it was to get where they now are. Comfortable.

While I'm not stingy with what i earn I certainly haven't forgotten my humble beginnings.

That translates into menial stuff like not always buying the expensive brands at the supermarket, using all the peanut butter from the bottom of that Jar Mr and turning the lights off when one leaves a room. Boring I know but its money that you don't have to find elsewhere.

If you are in the market for a new car consider either buying a 1 year old version, where the depreciation has taken off a third of the cost and you still have a warranty and the vehicle has been run in or consider putting off the purchase altogether.

It is best buying an almost new vehicle but when you do you need to hold onto it for around 7 years to get the most economic value from it. After that it is better to ditch it because repairs could cost a mint, unless of course you bought a Ford , in which case you should replace the vehicle annually.

Of course when making major purchases like household goods, cars, boats and houses it doesn't hurt to bargain with the seller, with electronic goods especially, competition is cutthroat and the sticker price isn't the final one, they expect you to haggle, so do it, you might be surprised.

Of course it you are holding lovely folding stuff in your hand, you have an added advantage. Cash is king in most bargaining situations and discounts for green come on top of other bargaining tools.

When it comes to your bank, bargaining works as well. Try and negotiate term investment rates, mortgage rates and their other, often devious charges. It works for me , they can only say no.

Of course when investing in the stockmarket prudent investing there starts with your own research, the more you can do that the more likely you will insulate yourself from the sharks that swim in this pool.

Remember, your money is usually hard to earn in the first place and clearly prudent saving, through wise choices and bargaining your way through your financial life, will put you in good stead for a healthy financial future.

It will also allow you to spurge every once and a while, a natural antidote to my otherwise miserly approach to the art of living financially constrained!

C Share Investor 2007