Money Saving Monday Tip #10 – Patience is a virtue
By glblguy
Romans 8:25 – “If we look forward to something we don’t have yet,
we must wait patiently and confidently.”
When the iPhone was released I had serious phone envy. While I wouldn’t buy one since my company provides blackberry integration nor due to the high price. I do love the interface on the iPhone. As the release date came and I watched various online websites that were following the story, I couldn’t believe the number of people waiting in line to pay $599 for one. I mean $599 for a phone!
Then, when Apple announced the $200 price drop 2-weeks ago, I just felt sorry for the people who waited in line for hours and paid the additional $200.
I think this whole story is just a really concrete example of something we all need to have a little more of, patience. Many of us seem to have this strong desire to have the latest and the greatest. We want the latest car models, HD-DVD players, gaming systems, HD-radios, kitchen appliances etc, etc. Why? Generally so we can impress our friends and neighbors.
The fact is: Waiting will get you the best price. This is particularly true with electronics given their tendency to rapidly price drop in a very short period of time. Here’s a few tips:
- Wait 6-12 months to purchase newly announced electronics. Not only will you get a much better price, but they are often more reliable as the manufacturer has worked out the “kinks” by then.
- Wait for new books to come out on paperback. Of course using your local library is the best option, but if you are a book nut like I am the best option for purchasing a book is to wait for the paperback release. Paperbacks are often 1/3 of the hardback price. If you must purchase a hardback, than wait a couple of weeks to receive discounts.
- Buy last years model. Many products, including cars change year to year. For the most part they are very similar, just a few minor features here and there. If you purchase last year’s model instead of the current model you can save a tremendous amount of money. With cars, this is even more true when the manufacturer changes the design.
- Buy used. – Let someone else take the initial depreciation hit on an item. By doing so you can save money and get an the item in as good as new condition. eBay and Craigslist are both great resources for doing this. You and often find newly released items but used items on eBay within a few days after they go on the market.
Let’s look at a few examples:
- Sony Blue-ray disk player
(affiliate link) – Initial Price: $999, Price Today: $439, a savings of $560
- Motorola Razr V3
- PlayStation 3
The list goes on and on, but hopefully this will give you some insight into how being patient and just waiting a little while can save you significant amounts of money on purchases. Avoid the peer pressure of having the latest and greatest and needing to be the first person on the block to own some new gadget or model. Instead, be patient and wait for the price to drop, then you can laugh and “rib” your neighbors for paying so much for it!
September 17th, 2007 at 1:12 pm
Since you said you were a book nut…
I just swung by the local thrift store on a suggestion from a friend that they have tons of books for less than a dollar. I was pleasantly surprised! I walked out with 3 famous business and finance books, a dictionary, and a thesaurus (all hardbound) for $5. I added up the retail price for kicks and the 5 books went for $142 new.
September 17th, 2007 at 1:27 pm
Great suggestion. I pick up a lot of self help and personal finance books at yard sales. They generally aren’t the kinds of books people want to keep…I got the Millionaire Next Door, it’s sequel, a couple of Suze Orman books, and Smart Couples Finish Rich all for like $3 I think at a yard sale in the spring.
But I agree, I’ve seen quit a few at the thrift shops too. Not sure if yours is like ours though, they aren’t organized and you really have to browse around to separate the “wheat from the chaff”.
September 17th, 2007 at 3:12 pm
I agree that one of the best ways to shop is to buy items that have already decreased in value(whether it be because they are not the newest model, or have seen one or two owners prior). The ironic thing about it is that the truly wealthy people seem to put this same principle into effect, while the people who buy everything “new off the lot” are the ones who only want to appear wealthy. Its two totally different worlds.
Regards,
Bunk Price
The Lifestyle Maverick
September 17th, 2007 at 4:35 pm
Hi Bunk, I agree that this is exactly what truly wealthy people do. I was listening to Dave Ramsey a few weeks back. A guy calls in and asks Dave, “Should should buy a house on the lake? My wife wants one”
Dave replies, “Well how much do you make per year”
“Nothing”
Dave laughs, “How much do you have in savings?”
“about 4, give or take”
“4 thousand? No you shouldn’t buy a house on the lake.”
The guy just as humble as all get out says “No Dave, 4 million”. At this point Dave about falls out of his chair from the sound of it. Dave goes on to ask him what he drives. He drives a 1978 ford F-150 pickup with almost 200,000 miles on it.
Thanks for stopping by and for commenting Bunk. Really appreciate you dropping by.
September 17th, 2007 at 10:21 pm
I can definitely relate. I’ve been wanting a Hi-Def TV for years. I told myself if I wanted one, I had to wait til they dropped in price. It also helps that I only allow myself to save just a little bit each month toward a big purchase, so it forces me to take time to think about it. Now I’ve got more choices, better technology to choose from, and much cheaper prices. But I’m still putting off the purchase for a while longer….
September 19th, 2007 at 11:46 pm
Patience? I do not know of this word….
Which explains my whole credit card debt scenario :)