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Save Money on Big Purchases
We all need to make big purchases once in a while, whether a new refrigerator, a washer/dryer, computer or a new lawnmower. Sometimes we have to make large purchases unexpectantly because of mechanical failure or other reasons.
Whatever the reason, all of these money saving tips will help you get the best deal possible. So how do we save money on big purchases?
Save Money on Planned Purchases
I want to first go over planned purchases. For planned purchases, you want to start by budgeting to save a sum of money over a period ($50 a week for five months, etc.) so that you avoid having to charge it and pay interest.
Doing this will give you the money for your purchase, but it won’t cut the total cost of it (we get into that later).
Say for example you want to buy a $2000 Washer/Dryer combo; you plan to save $400 a month for five months. You save for the five months, your appliance will still cost $2000 right? Yes you saved on interest, and you will not have to charge it, but how do you get the cost down even further?
These are the exact steps I take when making a large purchase even when it’s an unexpected one.
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Save Money on Big Purchases Whether Planned or Unplanned
The best way to save money on big purchases whether planned or unplanned is to stack the savings. There are many ways to save money, and if you incorporate them all together, you can save big.
1. Research your purchase first!
Researching your purchase is the most obvious step but often overlooked. If you can plan your shopping, that makes all the difference, but even when it is unexpected, a little research goes a long way. Looking around for the best deal can be as easy as a quick search online or in the Sunday circulars.
Plus, a lot of the Big retailers like BestBuy, Walmart, and Sears will match the price if you find a lower price on an identical brand and model number currently available for sale at another local competitor’s retail store! Some will even match online prices so be sure to check out their price match policies beforehand.
2. Look for rebates and incentives on your purchase.
When I upgraded my iPhone at Target, I waited until they were giving out a $150 Target gift card on it. It was a way better deal than what Verizon was offering me at the time. They have these deals a few times a year; you just have to keep looking out for them and be willing to wait. Holidays are a great time to look.
3. Use a reward credit card like Discover Card (my favorite).
You saved up the money to make your purchase, but a great way to save even more is to use your reward credit card so that you can earn rewards on your purchase. You can use the rewards to put toward your bill in the case of a Discover card and many other cards, so this is a great way to cut the cost of the purchase.
You will, of course, want to pay it off with the money you saved before any interest accrues but on top of that, you will get credit card rewards. Become a Discover Cardmember now, and you’ll get a $50 Cashback Bonus with your first purchase within 3 months!
4. Buy a discounted gift card.
Another great way to save money is to buy a discounted gift card to the store you plan on purchasing from. Use the reward credit card to pay for the discounted gift card and save even more. One of my favorite places to buy discounted gift cards is RAISE. Use my link and get $5 for your first gift card purchase.
5. Go through a cash back site and use a coupon code.
This can be done even for large purchases like a TV or Appliance. I often will go to the store and check out the item in person and then once I know which one I want I will go home, go online, go through Ebates or TopCashBack (whichever is giving the highest cash back at the time) and do in-store pickup or delivery if it’s free. These cashback sites will also list coupon codes so be sure to look before clicking over to buy.
One last thing you want to look out for is the store’s Price Protection Policy. Nothing is worse than finding that the product you just bought went on sale two days later! Check to see if your store has a policy that they will match your price if you find it lower after you buy it.
I hope these tips helped you! Leave a comment below if you have any questions or comments on how to save big on your next purchase.