Buying in bulk means more than just purchasing a 48 count package of toilet paper at Costco.
While it is wise to pay attention to prices, buying in bulk isn’t always just a frugal way to buy everyday food, paper and household goods.
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Buying in bulk can save you in three ways
The primary ways buying in bulk can save money are:
- Money
- Time
- Gasoline
Fewer trips to the store means more energy savings and wear-and-tear on the car. It also saves you time.
If you have kids then it could also save you sanity by making fewer trips to the store.
When it makes cents to buy in bulk
Look at the price-per-pound and compare them to what you could be spending on the same item at your local grocery store.
If you have a coupon you could beat the big-box stores like Costco and Sam’s.
Paying life insurance premiums or home and auto insurance annually can save you fees or result in getting a discount. Ask your insurance agent what they will do if you paid the full year all at once.
Pre-paying tuition is one way Coach Dave saves money. He pays ahead for his children’s private school.
What most people don’t think about when buying in bulk
There are costs associated with purchasing things in bulk.
Use the example of buying half of a cow. The meat might be cheaper but you need a way to store it.
A 5.0 cubic foot chest freezer can barely hold a half side of beef. With chest freezers costing $170 or more you would need to get the beef at a fantastic price to cover the storage cost. Don’t forget sales tax, delivery cost, and the electricity it takes to run the freezer.
Annual membership fees should also be considered when joining a big-box store. If a case of bottled water at Sam’s Club cost me $1 less than at our local grocery store I would have to purchase 45 cases of water just to break even.
The most important thing about buying in bulk
Remember to pay with cash, check, or debit card when buying in bulk (and someday BitCoin).
Using current money to buy future consumables will always be cheaper than consuming things today and paying interest on credit card debt in the future.
Paying ahead in cash could also save you in other ways. Simply by saving a little on the side every month has saved Coach Steve over $600 on summer vacations. How? They pre-pay by sending a check to avoid being charged a 3% fee when paying with plastic (debit or credit).
Coach Dave
If you want to make your money go farther and be more efficient with spending then contact a Coach.
We have ways to help you in any location, in whatever financial state you are in, and will improve the wellness of your money.
