The Lost Art of Bargaining

One way to get more for your money in these hard times is to simply remember how to bargain for it.
In an uncertain economy, it pays to shop smart. In fact, hardest part of negotiating is simply getting past the idea of paying the full sticker price. Keep in mind that in these hard times, people are increasingly willing to strike up a deal.
Just ask the sales clerk – 'Can we get a better price? ' It is especially good to do this if you think that it is not just a sales clerk you are talking to and that it is the owner you are talking to…
It also helps simply to look around for a deal. Do your price checks. Stores are often eager to match or beat the prices of their competitors, so check flyers, newspaper ads, internet auction and shopping sites (including eBay, Amazon and Yahoo) and bargain websites for comparisons. Print or cut out the information and take it on your shopping trip; sometimes if you can show you got a lower deal on the internet you do not have to pay as much.
Negotiating the price of a house or car seems obvious, but you do the same tactics to try and get deals department stores, travel centers, home contractors and cell phone providers. Haggling can work almost anywhere.
Try bargaining in person rather than over the telephone. To give yourself a lot of time to strike a deal, shop when a store is less busy and make sure that you are friendly, patient and polite.
You can also look out for damage on items. If you find a flaw on an item that you can live with or fix – such as a missing button on a jacket or a scratch on a table – ask for a better price.
Offering to pay cash in return for a discount doesn't mean you're helping someone skirt taxation; there's no need to put down $20 for dishware and make a run for the nearest border. Many retailers prefer cash payments because they pay a fee for credit- or debit-card transactions.
It is also a good idea to simply keep an eye out for sales. Ask when an item will be marked down and when new models are coming. They might be prepared to wait a bit and then give you a deal. I got a really great baby carriage that way.

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Ways to Save Money for Families

Most families today are dealing with overwhelming debt. I have found that one way to cut down on spending is to separate my wants from needs. Those fancy $200 boots are a want. Don't listen to that saleslady that is telling you they will last you forever and that they are an investment. You can probably invest in much cheaper boots somehow! Food and shelter are a need! Designer clothing is not
If you're in debt then it only means one thing. It means you've been spending more than you earn. Write down everything you spend for one month – you'll quickly see any areas of waste where you can cut back and save money.
Even debit cards can encourage you spend money you can't afford. There is something about plastic and not seeing your balance that makes you spend more. By withdrawing a set amount in cash for the week, you're better able to manage your spending within a budget.
I have found that making lunches, drinking coffee at home and cutting out taxis can make a big difference over the course of a month. Living without cash is a lifestyle choice – if last summer's dresses are still wearable then resist the urge to splurge on something trendy and new.
Another tip is to carry cash. Basically if you cannot afford to pay for it in cash leave it in the stole. Keep your credit cards for exceptional purchases that require the use of plastic, like airline tickets or hotel reservations.
Don't let that big mortgage balance stop you from trying to pay it off. It might take awhile, but paying down your mortgage will save you heaps of interest in the end. Use extra cash, bonuses or tax returns to pay down your principal. If you can afford it, consider switching to a shorter amortization period. For example, a $200,000 mortgage with a 25-year amortization period sees you paying a whopping $148,990 in interest over that period (and only if interest rates don't rise in the meantime!). Double up on your monthly payments and switch to a 10-year amortization and you pay just $53,969. Making regular payments against your principal will also knock those costs down.
Bottom line is that we should all plan to have six months of living expenses in a savings account in case of a health crisis or job loss. This is called 'Creating a Cushion.' Without an emergency fund, even the most frugal people can quickly spiral into debt when hit by an unexpected expense.

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