[PDF]12 Ways To Save Money Every Time You Spend Money

For most Nigerian households, the bulk of our money goes for
housing and transportation. Still, we spend a lot on fashion,
entertainment, and ofood eaten in restaurants and hotels.

Wouldn’t it be nice to spend a little less?

Fortunately, there are a number of tried and true ways to save
money on virtually everything you buy. In fact, we call them our 15
golden rules to super savings, and here they are.

1. Never buy new what you can buy used

To start, if you want to save money on everything you buy, you
should never buy new. Well, not never but nearly never buy new. I
am sure you might possibly want to buy new underwear.

But for most everything else, let someone else take the depreciation
hit. The product in the market loses n percent of its value the
moment it is bought by the customer. After five years, new
vehicles typically lose about 63 percent of their value.

Cars might be the best-known example, but virtually everything
depreciates over time. Jewelry, furniture, appliances, and even
video games and movies can depreciate faster than you can say
“bingo.”

2. Buy in bulk

Let’s say you use a lot of batteries. Why buy four batteries when
you could buy 40? Or consider Pure Water, a single one is Nio
while a bag of twenty is Nioo. That means if you buy the bag it
will cost you half the price of one single sachet. Buying in bulk can
be an excellent way to lower your per-unit cost. In fact, when you
buy some goods in large quantities, the producers transport them to
you for free.

3. control your impulse by using a shopping list


Have you ever bought something you did not want to buy and also
that you did not need from a market simply because you saw it?
what you just did is called impulse buying. It’s hard to put a
number on how much impulse buying costs us each but the price
we pay for our impulses is very high.

Control the tendency to impulse buy by limiting yourself to what’s
on your shopping list. Don’t use a list only for food stuff. Create an
ongoing list of planned purchases. When you notice your shoes are
wearing thin, add shoes to the list. When you decide you need a
bigger laptop, add that to the list.

Then when you are tempted to buy something on the spur of the
moment, refer to your list. If it’s not there, remind yourself that
you don’t need it and that money spent on impulse takes away cash
that could be used to buy something you really want.

4. Remember that brand names cost more money

If you’re buying a brand name, you’re likely spending extra cash
and may not be getting much in return.

You can save anywhere from 30 to 52 percent by buying things that
are not popular but serve your needs. What exactly is branding?
Branding is when a company makes its product so popular that
everyone wants to be identified with the product. There may be
other products competing with it but people rarely buy them
because they don’t have advanced brand names. Because of this, the
smaller brand names sell at cheaper prices.

This applies even in drugs. A company that buys the generic names
of drugs usually sell their products at a higher price than companies
that must create their own name. In most cases, there is no
difference at in the products because both companies have met the
safety standards of the country.


5. Negotiate for the lowest price


You’re missing out on great savings if the only time you negotiate
is when you’re boarding a rickshaw or Jzeke napep, like we like to
call it. always try to negotiate the best prices possible for any
product you want to buy. For example, before buying a television,
go out to window shop and find out the prices of the same product
from different shops and also of competing products that offer the
same options. Compare notes on the best bargain before you
commit your finances.

6. Stop being the first to buy a product

Always having the latest and greatest gadget or product might
make you the coolest in your circle of friends, but it’s also going to
empty your wallet in a hurry. You’re paying a lot of naira for
something you could probably get for significantly less a short year
later.

Why do you need to upgrade anyway? Why buy an Ego for Bently
laptop when your HP G6 is working perfectly fine? The Internet
exploded in 2014 when the Mike Adenuga was photographed using
a cheap phone. Some people laughed, saying he was behind the
times, but he’s a billionaire so, really, who should laugh at who?

7. Make a habit of sharing purchases

Is there really a need for everyone in your compound to own a
generator? If your generator can carry the load, can you share the
cost of petrol with your neighbor and then do the same later with
his generator?

Make a point to look for ways you can share purchases with others.
Maybe that means going out with friends and neighbors to make
purchases, or it could be as a simple as calling up your friend and
asking if she wants to go somewhere so you can go in one car. The
point is that you should save money by doing things with others.

8. Consider whether you can make it or do it yourself


You can save a lot of money if you do things yourself rather than
paying someone else. From fixing your own satellite dish to
cooking your special meals, many of the things you buy could be
replaced by your own effort or ingenuity. Having said that, I don’t
recommend treating yourself of any sicknesses at home.

9. Compare, compare, compare

Knowledge is power, and your money will have more buying
power if you take the time to do a little research. Never make a
purchase without first checking prices at other retailers and online.

10. Don’t buy under pressure

Of course, intelligent salesmen and retailers won’t want you to
shop somewhere else apart from them. There is always a chance
that they will pressure you, arguing that the prices have never been
so low or their manager is making a special deal for you that will
only be available for only one day.

They are trying to back you into a corner where you feel you can’t
possibly say no. But competition is fierce, and the reality is there
will always be another sale. Another opportunity to buy the same
product or service cheeper will always arise.

Don’t buy unless you’ve done enough research to know the deal is
good.

11. Try doing without

You may be inclined to run out and buy something as soon as the
old version has worn out or breaks. However, wait a couple of days
or, even better, a couple of weeks before making a purchase. You
may find you can do without the item, or you may discover you
have another item that can work as a perfectly acceptable
substitute.


12. Only pay cash


Finally, if you really want to save money on everything you’ll ever
buy, only pay with cash. Using cash discourages spending, while
your ATM and online platforms encourage it. In addition,
spending cash keeps you accountable by ensuring you only use the
money you have on hand rather than basing your purchases on
some vague notion of what might be available in your bank.