Whether we like it or not, money is a significant driver individually and within society. Financial educators and advisors believe understanding the value of the money you hold has the potential to increase your spending power and, consequently, your ability to save.
Everything we buy has a price, and everything we buy has a value. Sometimes the two are the same. Often there is a difference between the price and the value of the item we are buying. For example, if an item is available in two different shops, but each shop is selling it for a different price, then it has a different value.
The challenge is identifying where the value is - and how to take advantage of it. However, keeping our needs in mind is important here. It makes no sense to buy in bulk only to throw away half of it.
Deciding on a way of paying can also make a difference. Try cash for example. You can't spend more than you have and cash, particularly, can mean you are more cautious because you can see how much you're forking out.
Here are some examples of how you can increase the value of your money:
- Get more volume for the same price (such as 2 for 1 price offers)
- Negotiate discounts
- Price match between stores (online businesses can make this super easy for consumers.)
- Wait for the deal. Particularly on big ticket items, monitor sites for the best deals, then take advantage.
- Buy used. Buying used and refurbished items can save you money.
- Plan before you shop. Wandering around can lead to overspending. And never do your weekly food shop hungry.
- Product bundle (such as with landline, mobile phone and internet)