Cat in washing machine

Money Hack #3: Plan big purchases

Sep. 2, 2020 - 4 min read
Money Hack

Big purchases are infrequent but have an oversized impact on your finances. Small optimization around regular expenses can make a difference in your budget, but big-ticket items are another beast. What constitutes a big purchase? For me, it's any single item over 100$. It's a simple number, and starting at that price point getting a discount starts making a difference.

It helps if the purchase is planned before-hand: it's hard to plan around your fridge giving up, or a car accident. But there are plenty that can be planned! Buying a new bed, replacing windows, buying a new phone, etc. If you think you have none, just check your budget... you have one right? If not, just check your bank account or credit card statements and I'm sure you'll find some expenses there. Then, try to think about the future: maybe you have a vacation lined up (haha, good joke 2020, maybe next year), or your washing machine is getting old and you'd like to replace it with a newer, more efficient model before it breaks down.

In all cases, today's advice is all around buying the exact thing you want, but at the best price possible.

By timing your purchases around the time of the year, you trade the ability to get the item right away to get a discount. By being flexible, you save money. Simple!

Now it all depends on what you're buying, every item will be different.

Want to buy a new phone? Usually, the best time will be around a month just before a new model is going out, up to a few days after the release. Retailers will sell their old stock at a discount to make place for the new model, so you can usually find a good deal. If you're ready to test the second-hand market, you can get one even cheaper as the market will be flooded by people looking to buy the brand-new model as it releases.

Want a new TV, a new hard drive, a new laptop, or other electronics? Retailers in this sector usually have set sales during the year, with Black Friday and Boxing Day being their busiest time of the year. While not everything will be on sale on those dates, depending on the specific item you're looking for, it could be worth it to buy it a bit sooner or a bit later than you anticipated. Watch out for fake sales though, as some items may look like a good deal but just look like it. As always, decide what you need to buy first, then look at the sales. Never look at a sale looking for something to buy, that's how you'll buy stuff you don't need. If in doubt, remember Money Hack #2: Sleep on it and take a breather.

Looking for a new washing machine? You'll get the best discount if you buy many appliances at once, so if you have a few that need to be replaced you can negotiate the price a bit. But otherwise, moving dates should be your best bet. At a time where most people are moving and looking to buy appliances, retailers will discount their models to attract them. Another good moment to buy appliances is right before a new model comes out, as retailers will be discounting the old model to make place for the new one. That exact date will depend on where you live, so you'll have to figure that out for yourself.

With only a few examples, I'm sure you got the idea. Most purchases have a moment in the year when they're cheap, and a little bit of planning can go a long way into benefiting from that opportunity. Now it's up to you to figure out what's the best time to buy your big purchase! When you have such a purchase lining up, start searching and inform yourself. Most importantly, don't forget to buy the thing at some point! If it's in your budget, you probably needed it.

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