How to Minimize Your Finances

How to Minimize Your Finances 1) Buy Used:  Buying used means that the seller has already taken the biggest hit on depreciation, this is true for cars but it is also true for just about everything else you buy too (real estate and collectible items being exceptions). This is certainly true on cars, furniture and sporting equipment (like golf clubs or downhill skis). The better deal you can negotiate on the sale price (whether new or used) the less you’ll have to worry about depreciation. 2) Buy Quality:  It may seem counter-intuitive, but sometimes you can come out ahead by spending more money for a particular high quality item. For instance, you could buy a brand new table from discount furniture retailer like Ashley Furniture or Bob’s Discount for $1,000 that you couldn’t give away after 10 years or so of use. On the other hand, you could buy an antique or high quality used table for the same price or slightly more. The difference is (if you wanted to) you could probably sell the antique table for the same price (if not more) than you originally bought it for. 3) Don’t Buy More than You Need:  While many of the newest features on cars, electronics and other items seem cool, many of them end up not being used or fully utilized. When it comes to selling your car or trading it in on a new model, you won’t get anywhere near what you paid for the extra accessories, options or gear. The same is true for sporting equipment, unless you’re a world class downhill racer, you probably don’t need to pay an extra $500 for the latest boots or aerodynamic ski poles. But, that choice is always up to you. I’m just trying to save you money. This may seem all too obvious for some people, but for me, considering the depreciation costs of new items helps me to appreciate the total value of item I am about to purchase.

This may seem all too obvious for some people, but for me, considering the depreciation costs of new items helps me to appreciate the total value of item I am about to purchase.