Buying new makes saving money much harder

Posted By: Matt in Frugality on 04/14/2016 at 17:38:02

You can observe your budget, look up and down at how you're spending your money and come to a conclusion the masses typically draw: you're not doing anything wrong.

Let's say you have a budget, you spend money on your bills and hardly spend money, and if you do, it's something that you need and is rarely if ever frivolous in nature.

And, to make matters better, you have a budget and you stick to it, and even when you buy things like clothes, shoes or even your car, you justify quite easily that not only do you have the money but you've allotted your income toward those things.

But did you ever think that those purchases, even though they're justified and accounted for, could be better served to help you save money in the process of spending it·

That question simply centers on buying new or buying brand names versus the actual art of loving and spending money on used items or not necessarily needing to have name value behind every purchase you make, namely in the vein of clothing.

Think about a new car and that how quickly a car or truck can depreciate the moment you take it off the lot. When you finance a new vehicle you do, in fact, get a better interest rate then you would a used one, but think about two other elements: your monthly payment and the overall price of the car, most importantly the latter.

We tend to focus on who much a monthly payment is going to be, granted, but what about the total sticker price of the vehicle and the length of the term. A good salesperson can give you the car of your dreams and make that monthly payment look good, but you justify the newness of the vehicle and the duration, a six or seven year term versus that same comparable payment on a used vehicle with a four or five year one.

The car, as far as buying new, is the obvious spot where you can buy used a save, but what about clothing and subsequent brand names or other items that lend themselves to used versus new·

Things like furniture, technology and clothing are perfect spots to save money buy buying used, rather than new. Whether it's CraigsList, eBay or other online auctions for those items, you can save hundreds on any of those classifications of items, and that money can be better served sitting in a savings account.

While used isn't the preferred method of buying, it can be effective in allowing you to save money and still have what you need, minus the proverbial bells and whistles of buying new.


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