It’s an interesting fact that when people want to buy something they follow the crowd. They line up to buy the latest gadget from Apple, buy the latest clothes at the Macy’s, and rush to buy a new home when the prices are skyrocketing.
In the last few months the stock market has dropped dramatically and there is talk of a recession in the air. The price of homes have dropped to levels not seen in four or five years. New cars and trucks have incredible incentives. Yet people aren’t buying.
Why aren’t homes that were priced over $500,000 a short while back not selling at $300,000? Surely this same home is much more of a value now and the resulting property taxes are much lower. Why is the new home sales office empty when there were people camped out at the same office just a few short years ago?
It is an interesting dichotomy that sometimes people buy when things are overpriced and turn away in droves when they are a bargain. Why were people willing to pay $200 a share for Apple stock just a few months ago and now are having trouble buying the same stock for $130?
If we take a step back from the hype and marketing frenzy, there are some incredible bargains to be had. And the good thing is they are many different products available if we are willing to look.
The secret is timing… Buy incredible products, services, or stocks when no one else wants them. Since most things go in cycles, what is down now may surely go back up. Just be sure to buy quality.
Here are some examples of great deals that are available on a regular basis.
- Cars: Why buy a new car when you can buy a quality used one a year old for an average savings of $5000? You still have the manufacturers warranty to fix any problems you may have and no one will really know the difference once it is in your driveway.
- Homes: Home prices go in cycles. Just look back in history and you’ll see home prices complete a cycle in about 6-7 years. Buy at the bottom of the cycle and you’ll save tens of thousands of dollars.
- Stocks: Stock prices go up and down at the whim of Mr. Market. The secret… Buy great companies at bargain prices. An interesting book on the subject is Rule #1 Investing by Phil Town. Phil will show you how to figure the “sticker price” of a company and then plan a strategy to buy it when it’s 50% off.
- Outlet Malls: They have all the designer clothes that were super expensive just a few months ago at amazing prices. Shop here on holiday weekends and you may save even more. If you get on the mailing lists of the popular stores, you’ll routinely receive coupons in the mail for even better savings.
- Celebrate Christmas on New Year’s: Can you imagine how much money you would save if you celebrated Christmas a week late? You can buy all the Holiday items at 50-70 percent off the day after Christmas including the tree. You’ll also save enormous amounts of money buying gifts in the after Christmas sales. Hey… you probably get New Year’s off anyway.
These are just some ideas to help you save a lot of money. And we shouldn’t forget the best shopping day of the year, Black Friday (The Friday after thanksgiving) where stores give things away under their cost just to get you in the doors (You will have to stand in line though).
I would love to hear of bargains that you have found!