Sweat the Small Stuff

• barrieabalard
• November 26th, 2009

I’ve had people tell me that saving money a nickel here, a dime there, is too much work that won’t amount to anything. They like to save, they say, on big ticket items—autos, appliances, items like that.

Of course, it is important to save money on the big things. I would never advocate anything else. I’ve discovered, however, that being frugal with the small stuff not only adds up, but produces the essential mindset to watching for more ways you can save money or cut back. Using a little less shampoo, or using a less expensive brand, might save you only, say, a quarter, but quarters add up.

Still, for those who want to make the big scores, here are some suggestions for you.

• Take time to do the homework. We found we could save hundreds on our car insurance (in New Jersey, car insurance is incredibly expensive, and we drive 13-year old cars). We spent about 90 minutes total, exploring options with three different companies both online and on the phone. When we dug further online and saw both good credit ratings and glowing reviews for claims processing for one of them, the company also happened to be the cheapest! We switched and haven’t looked back. We figure we “earned” a couple hundred bucks an hour for our efforts.

• Consider buying dented or scratched or refurbished, or even used. I know someone who routinely buys less-than-perfect appliances and desktop computers, and he’s never had a lick of trouble. I have also bought a dented big appliance (it was many years ago), and at the time saved over fifty bucks—when fifty bucks was worth more. I also bought a used washing machine once through one of those shopper-type publications--it ran for years. Of course, your experience might be different, so again, do your homework and be a careful shopper. You will often find scratch-and-dent stores in less affluent neighborhoods. If you don’t need the latest color or style for your big appliances, scratch-and-dent stores could save you a hundred dollars or more per appliance. (One caution when buying used: items like chest freezers, refrigerators, and electric clothes dryers, if not relatively new, might cost you a lot more for electricity than a newer, more energy-efficient model. If you live in an area where electricity isn’t expensive, then buying used might make sense for you.)

• It’s an oldie but a goodie: if you’re employed and usually get a lot of money back from Uncle Sam every spring, increase the number of deductions slightly so you can have the use of the money now, not several months to a year from now. (I must issue a disclaimer: I’m not qualified to give tax advice to anyone but myself, so if you have any doubts about this suggestion, or don’t know what I’m talking about, ask someone who is qualified to give you tax advice.) Now, this won’t save you a lot of money, not with savings account rates what they are, but wouldn’t it be better to have that money in your bank account, just in case you need it for an emergency?

I’ll make this short because it’s the night before Thanksgiving and it is my favorite holiday. I’m off to enjoy time with my family and have some much-needed rest.

Happy Thanksgiving to all!

Now, where did I put that pumpkin cheesecake?

Tickers: big-ticket item savings, do the homework, insurance savings, major appliance savings, saving money, sweat the small stuff

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