Reduce Costs With a Renewal and Savings Strategy
Sometimes, spending money can really save you money . For example, if you buy cheap boots and change them often, you will save money in the long run if you buy a more expensive pair of boots that will last you longer. In line with this concept, writer Jim Wang proposes a “upgrade and save” strategy.
When we want to cut costs, we often think in the short term. I look at my budget and ask myself, what should I give up? What can I live without? Instead, Wang encourages us to think outside the box when we look for ways to save money. Try to look at the costs you can “invest in” to save money over time. He explains:
The update and save strategy is simple. I make a list of all the expenses that I pay on a regular basis. It can be such little things as a morning cup of coffee to the heating system of our house. If you use it more than once a month, this is a candidate. Next, is there a way to spend money in advance, upgrade it, and save money in the long run? Often the answer is yes.
And as a double bonus, by upgrading, I can get a better level of service or enjoyment while saving money at the same time. I don’t cut or starve something, I add to it and have more fun.
The “escalated” expense can be something you rent every month. For example, instead of renting a modem from an Internet service provider, buy one yourself. Or it could be a frequent purchase: instead of buying fancy coffee every day, buy a fancy coffee maker.
Of course, some people use this as an excuse to spend money. They will justify a frivolous purchase by saying it is an investment. So this tip is perhaps more appropriate for those who are a bit stingy with money.
The goal here is to save money. The update is just icing. Check out the rest of Wang’s post at the link below.
Renewal and Conservation Strategy | Wallet Hacks