Friday, September 3, 2010

Financial Friday: How to Build Your Stockpile & Stay Within Your Budget

One of THE biggest ways I save money is by having a stockpile. What is a “stockpile?” Or what I like to call my “stash?” 4 words – Low Price? Buy Lots!

If you’ve been shopping for a while and kept a mental price list, you generally have an idea of how much certain things cost. And I bet you have at one point found a good deal or sale on an item, and actually bought several of those items. That’s exactly what stockpiling is. It does take that initial, upfront investment, however it will save you tons over the long run.

Example: Toothpaste – Full Retail Price – $2.50
Sale – 10/$10 or $1.00 each

Let’s say you go through 1 tube of TP every 2 months. If you found the TP on sale that week 10/$10 and only bought 1 to last you for a while, you will need to purchase more TP 2 months later and at full retail price. So in 1 year’s (12 month’s) time, you would have to buy 5 TP @ FRP.
(1 tube x 10/$10) + (5 tubes x $2.50) = $13.50 spent per year on toothpaste

OR

You could stock up when the TP is on sale for $1.00. Buy 6 – 12 months worth. And it’s perfectly OK to buy lots of TP because it lasts a long time. So if you use 1 TP every 2 months, you will need 6 tubes. But 6 when they are only $1.00.
(6 tubes x 10/$10) = $6.00

Over less than HALF the price above. See how stockpiling can save you money in the long run? Whenever we run out of something, we just head to our stash and grab another one. It saves us money, time & stress!

Like I said, you do have to make that initial investment, BUT – spend $6.00 to save you $7.50? Sounds good to me!

Here are some tips to stockpiling within your budget:
Determine a few items that your family might go through quickly. Like deodorant, toilet paper, toothpaste, etc. Start searching and keeping your eyes peeled for good sales. When you find something that is at a rock bottom price, buy several of them.

If money is tight, try taking something out of the grocery budget that you don’t need or that can maybe wait – like ice cream or candy, something like that.

Maybe next week or next month, the money you saved from not needing to buy what you just stockpiled, just built you a cushion in your budget. This doesn’t even include coupon usage! Just watching sales and buying lots at a low price can save you mucho! Tack on a coupon, and you’ve got a stockpile without spending much money. Here’s a list of items to consider stockpiling. Kroger runs most of these products during their 10/$10 sale:

(Stockpile items that generally have a longer shelf life)
* Toothpaste
* Deodorant
* Toilet Paper
* Shampoo/Conditioner
* Body Wash
* Cereal
* Canned Goods
* Cleaning Supplies
* Laundry Detergent

Good luck starting your own stockpile!

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