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Billionaire J. Paul Getty’s savings philosophy can be summed up his immortal words, “ I buy straw hats in the Fall.” No saying was more true for cost savings that this one. Getty’s billionaire mind realized that the buying habits of most people meant that they bought their necessities right when they needed them. Manufacturers know this and price their products at their highest point during peak buying season. In the case of straw hats, this would be in late Spring – right before the hot summer farming season starts. Manufacturers also price their products at their lowest price right after the season is over to clear out inventory. While others were thinking about the Fall harvest, those farmers in the know were thinking about the following year’s summer growing season – purchasing their supplies at cents on the dollar.
Thinking like Billionaire J. Paul Getty will save a lot of money!
This is almost universal. Manufacturers don’t want to hold inventory for six months and tie up capital – they’d rather sell the current year’s inventory at a discount and redeploy the funds into current inventory.
How does this help when setting up a home budget?
Setting up a home budget does not need to be (and should not be) complicated. Remember that changing the timing of your purchases can save you a lot of money. Below find three examples.
Buy Halloween candy on November 1 – Walk into any big box retail store the day after Halloween and you’ll find most Halloween supplies are 50, 60 even 75 percent off or more! Halloween candy makes great stocking stuffers, and it’s even better at 75% off.
Buy Ski Equipment in February – For those of you who ski, you know you’ll be back next year so why not buy your new equipment at the end of the season, not at the beginning – you’ll save a bundle!
Buy food in bulk when it is on sale – utilize Grocery Game (grocerygame.com) or Savings Angel (savingsangel.com) to maximize your savings, the best part is both sites are fun! Grocery Game and Saving Angel alert you when prices at your local grocery store are at their lowest point – allowing you to stock up. This methods handily outperforms warehouse club purchases if done right!
Home budget exercise
When setting up a home budget, think about your consumption habits. Then decide when the best and worse time is to buy what you use. Then buy in volume at the cheapest possible time, and buy only what’s necessary during all other times. Repeat this exercise daily until you’ve captured 80 percent or more of your routine expenditures. Good luck, and let the savings begin!!!
Look for Part 3 Coming Soon