Comments on: How Spending Money Can Actually Save You Money

By: The Financial Blogger | October Monthly Top Ten

The Financial Blogger | October Monthly Top Ten — Mon, 05 Nov 2007 11:10:06 +0000

[...] #8 How Spending Money Can Actually Save You Money at moneysmartlife.com. Sometimes, life is so simple that you can actually save money while spending. This is quite an interesting concept. [...]

By: Ben

Ben — Tue, 09 Oct 2007 01:55:30 +0000

It’s always nice to have a plan B mike.

By: Mike

Mike — Mon, 08 Oct 2007 19:59:15 +0000

My experience with electronics is that you can alright by upgrading at sales and saving the older equipment in case of emergencies. I’m just now picking up wireless G in my house and I’ll be keeping my wireless B router around should calamity strike.

By: Ben

Ben — Mon, 08 Oct 2007 03:29:42 +0000

I agree, electronics aren’t the best example because they can become dated quickly but this fit three of the four criteria I mentioned:

Will the item need to be replaced or upgraded in the future? – I knew I’d need a new router pretty soon, plus I needed/wanted a wireless one so I knew I’d use it.

Is it a large enough discount to make it worth your while? – Yes, I bought it for $19.99, retail is $59.99.

Can you store it easily? – The box fit easily on a shelf in my basement.

By: Mrs. Micah

Mrs. Micah — Mon, 08 Oct 2007 00:53:51 +0000

While people point out that it may not have saved you money, it certainly saved you stress. And less stress is worth something in itself.

I am in favor of such things, though I think Sean’s suggestions of nonperishable, non electric things make the most sense. Some computer-related things, like CD-Rs, if you use them and they’re having a big sale, also seem like a good idea. I probably wouldn’t have bought the router unless it was on a big sale.

But good going with this! There are definitely a lot of places where spending money can save money.

By: Robert

Robert — Sun, 07 Oct 2007 15:33:03 +0000

It’s a good concept, but not a very good example. There’s no evidence (given) that this router purchased was cheaper than current store or mail order price, though you were saved the potential hassle / time factor of each. For these types of items though, you run the risk of not using them and wasting your “investment” whereas other items mentioned like linens and towels are much better suited for it. They don’t perish and you don’t have to worry about them not working right out of the box, either.

For electronics, a good example would be buying some redundant storage saving you money by preventing crucial data loss to your business or something similar.

By: Sean Owen

Sean Owen — Fri, 05 Oct 2007 03:58:30 +0000

Nice post, Ben. I’ve often argued that you can save money buy buying things when you don’t necessarily need them, but know for certain you’ll need them in the future, and spot a great deal now. Clothes, bed linens, and other items that can wear out from use but aren’t perishable on the shelf all work well.

If you wait until you need something right away, you’ll often end up paying much more for it. I call it the “now premium.”

The Million-Dollar Dime.

By: Mark U Runta from Smart Investing & Money Management

Mark U Runta from Smart Investing & Money Management — Fri, 05 Oct 2007 01:40:19 +0000

Good strategy but in my experience has limited use when it comes to consumer electronics. Three factors which dissuade be from stockpiling are (1) usually electronic products last a while
(2) by the time I need to buy a replacement there is a newer model or a different product available and
(3) prices point on such products erodes rapidly (like the iPhone).

By: Meg

Meg — Thu, 04 Oct 2007 16:50:01 +0000

This is a good point–one that underlines the benefits of having a “gift closet” and/or a selection of greeting cards on hand at all times.

Those things are always needed throughout the year, will not lose their value or become obsolete, and often are on sale–but never at the time you actually need one.