A bad economy has a lot of negative correlations including higher unemployment and difficult financial times. There are however some benefits to a bad economy, such as lower prices. Consumers can get a better deal on products than they can when the economy is booming. These extra savings can help to put more money in your monthly budget.
Here are a few tips to help you save money in a weak economy. Make retailers match prices
A good economy gives more power to retailers as they can set prices higher due to strong demand. Bad economic conditions give the leverage back to the consumer as companies are desperate to get rid of excess inventory. You can negotiate lower prices on a number of items that you buy everyday from clothing to electronics. Take the time to search for the lowest prices offered by retailers and comparison shop. Some stores will give you lower pricing than competitors to win your business.
Visit dollar stores
The Dollar Tree, 99 Cent Store and general dollar stores are a shopper’s best friend during economic downturns. You can stretch your paycheck further by making sure that you get the best deal for your money. The prices at dollar stores are even lower than the offerings at discount stores like Walmart. You can stock up on many of the items that you would normally buy at a grocery store or discount store. Your shopping bill will be a whole lot cheaper than it would have been if you had gone elsewhere.
Become an online shopper
The Internet is still the number one shopping destination for the price conscious. You can save money on sales tax and overhead fees that traditional manufacturers have to add into prices. An Internet shopper is not limited to just their local area. They can buy the best products from anywhere in the country. Search for deals that are simply too good to pass up and can beat anything that you can find in a store.
Buy discontinued items
You can get a great price on a quality product just because a manufacturer is choosing not to make the product anymore. Take the HP TouchPad for example. HP is no longer supporting the webOS system anymore so the TouchPad is being sold for $99. That is a huge discount for an item that was selling for $500 just a month ago. A savvy shopper can buy below retail pricing without sacrificing quality.
By taking advantage of these techniques you can make the best of a bad situation.
Mark Riddix is the founder and president of New Horizons Financial Management, an independent investment advisory firm that provides personalized investing and asset management consulting. Mark is a regular contributor to Seeking Alpha and has written financial columns for Baltimore and Washington, D.C. area newspapers. Mark publishes his own financial blog, BuylikeBuffett.com and has written the book Your Financial Playbook.