A Tale of Two Houses

A Tale of Two Households

Having met with many clients over the years it’s interesting to see how each of them budgets, saves, and invests their money. What’s even more revealing, as seen in the example below, is how much more a family can save when they make saving and budgeting a priority.

Sometimes, it’s not how much you make, but how far your money can stretch. Please note that the companies mentioned here are based upon Consumer Reports suggestions and what some clients have stated. As with any suggestion, please note that your personal circumstances may result in different outcomes.

Household 1’s Spending

Auto Insurance

Used a larger insurance firm. Spent an extra: $83 monthly/$1,000 annually.

Cable/Internet

Signed up for the package recommended to them, and didn’t negotiate their internet or a bundle. Spent an extra: $100 monthly/$1,200 annually.

Groceries

Shopped at high end grocery stores. Spent an extra: $417 monthly/$5,000 annually.

Phone Service

Used a larger phone provider. Spent an extra: $150 monthly/$1,800 annually.

Household’s 2’s Spending

Auto Insurance

Shopped between Amica, Pemco, Safeco, & USAA. Saved $83 monthly/$1,000 annually.

Cable/Internet

Negotiated with current provider on the $59.95/month plan. Saved $100 monthly/$1,200 annually.

Groceries

Shopped between Costco, WinCo, Grocery Outlet, etc. Saved $417 monthly/$5,000 annually

Phone Service

Shopped between Consumer Cellular, Ting, Google Fi, Republic, and Mint. Saved $150 monthly/$1,800 annually.

Annual Savings for Household 2: $9,000 after tax = at the minimum $11,000 pre-tax

As this example has shown, by carefully choosing your purchases you can hold on to more of your money.

Please also note that the majority of time you can save a great deal of money by buying a used car that is several years old and is still in warranty; however, sometimes, if you’re not careful, a dealer could charge you more than for a new car. It is possible to ask to take the vehicle to get inspected prior to purchase. You can save the most money by buying a used car through a private party after you have had an ASE certified mechanic inspection.

And if you do decide that you have to own a new car, here’s the way to buy it:

Larger one-time purchase:

When buying a new car try using Costco internet services, TrueCar or the dealer’s internet department

Purchase price: 2020 Subaru Forester 2.5i $22,782

Saved $2,723

Didn’t purchase extended warranty

Saved $3,000

Auto Savings: $5,723

The Save First Blog

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