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Newer isn’t always better. With planned obsolescence becoming the norm, some secondhand items are actually built better than what’s on the shelf today. That’s why frugal shoppers check the thrift store first. Here are seven things they look for secondhand before they even think about buying new, plus how to shop for each one. Solid Wood Furniture Well-made wooden furniture is known to stand the test of time. No matter how old it is, it will usually last longer than anything made of plastic that you buy brand new. Check the drawers, joints, and legs for sturdiness before you buy. Even broken pieces are usually easy to learn to fix, or it’s still more affordable to repair than replace. Textbooks Textbooks cost a lot of money. Used textbooks are very often just as good as new ones, and older editions are often still relevant. Ask students who recently finished the course, or check thrift stores near the school. When you’re done, you can pay it forward by selling yours fairly to other students. Guitars Countless musicians swear by buying guitars secondhand. One says they wish they had known to buy used guitars when they were younger, because it would have saved them a lot. If you know a bit about fixing up guitars, you can save significant amounts. Pedals can be bought secondhand too. Clothes Thrifting is a pastime for many people, and you can score amazing finds, especially if you enjoy a unique wardrobe. Go in with a short list of what you need so it doesn’t turn into impulse shopping. Most shoppers draw the line at underwear and socks. Books Many people love to browse used bookstores, and some prefer older books to newer ones. Thrift stores are a great way to find out-of-print books and editions from authors you wouldn’t find in a regular bookstore. Keep a list of authors or titles on your phone so you can check the shelves quickly whenever you stop in. Tools Great tools last a long time, which is why many people only buy secondhand, from screwdrivers to gardening tools. Newer ones are sometimes cheaply made. Look for tools in great condition, and keep them clean and maintained. They can feel like new for a fraction of the price. Baby Products Babies outgrow things so fast, from clothes to toys and carriers, that buying new rarely makes sense. Look for good toys and baby gear at thrift stores, and do your research first. Very old items may contain lead or may have been recalled for safety issues. Read More: 14 Purchases Frugal People Consider a Waste of Money 11 “Outdated” Frugal Habits That Are Making a Comeback Have Any of These 12 Items? You Could Be Rich 7 Things Frugal Shoppers Never Buy New
There’s a funny thing about brand-new items…. The moment you carry them out of the store, they lose value. This is true for a new couch, a new car, a new set of tools: all of them are worth less the second you take them home. Frugal people know this, so they let someone else take that first hit. Buying secondhand isn’t about being cheap. It’s about getting the same quality for a fraction of the price. Here are eight things that are almost always smarter to buy used. Cars A new car loses a big chunk of its value in the first couple of years. A gently used car a few years old has already taken that hit, so you get the same dependable ride, often with lower insurance and registration costs. Get a pre-purchase inspection from a mechanic you trust, and check the vehicle history report before you buy. Furniture Solid wood dressers, dining tables, and bookshelves are often built better than the new flat-pack versions, and you can find them for a fraction of the cost at estate sales, consignment shops, and online marketplaces. A little sanding or a fresh coat of paint can make them look brand new. Books Between used bookstores, thrift shops, and library sales, there’s literally no reason to pay full price for a paperback or a hardcover book. You can fill a whole shelf for what one new hardcover costs. And if you’re only reading something once, the library is free (and the best place to visit!) Tools A good hammer or wrench can last decades, and most don’t wear out. Used tools at garage sales, pawn shops, and secondhand stores are often higher quality than the cheap new ones. Test them before you buy to make sure everything works. Kids’ Clothes and Baby Gear Children outgrow clothes and gear so quickly that many items are barely worn. Swap groups, consignment sales, and hand-me-downs can cover most of what a growing family needs. The exception is anything safety-related, like car seats. Check expiration dates and recall notices, and never buy one with an unknown history. Exercise Equipment Many people buy a treadmill or a set of weights with the best of intentions, then sell them a few months later at a steep discount. That works in your favor. Look for used equipment in good working condition, and you can skip the new price tag entirely. Electronics Refurbished laptops, phones, and tablets from reputable sellers are tested, repaired if needed, and usually come with a warranty. They often cost noticeably less than new models and work just as well. Check the return policy before you buy. Formal Wear and Special-Occasion Clothes A dress or suit you’ll wear once or twice doesn’t need to be new. Consignment shops, resale apps, and rental services carry beautiful options for much less. And if anyone asks, you can just say it’s vintage. Read More: 9 Things the Middle Class Will Be Priced Out Of by
I got this email from Dr. Wade Pfau’s Retirement Researcher. I signed up for the Zoom sessions to get free access to their Tax Map Calculator. I figured folks here may want to educate themselves on their effective marginal tax rate as well. Hi Randy, If I asked what tax bracket you’re in, you could probably tell me. If I asked what your next dollar of income would cost you in federal taxes, that’s a harder […]
In this article, we discuss if the oft-used safe withdrawal rate is practically helpful in retirement planning. What is a safe withdrawal rate? The safe withdrawal rate (SWR) is the annual withdrawal amount in the first year of retirement divided by the available retirement corpus. Backtests are usually used to determine an acceptable rate. We… The post Is a safe withdrawal rate relevant to retirement planning? appeared first on freefincal.
Taxes may be the last thing on your mind right now. The kids are studying for mid-terms and the holidays … Read more
The Canadian Financial Summit kicks off this week. Kyle at the Summit puts it this way – This Virtual Summit will cut through the fog of confusing financial jargon and build the confidence needed to seize control of your personal finances. Each speaker will pull back the curtain on their unique area of expertise. With their actionable advice and attention-grabbing speaking styles, these experienced Canadian gurus will help take your money game to the next level – […]
I love Christmas – only 67 days left, but honestly, have you seen how much some Christmas decorations cost these days? By the time you’ve bought a few baubles, some lights and a wreath for the front door, you’ve spent a small fortune, especially if you want to update The thing is, you really don’t need to spend loads to make your house look lovely for Christmas. There are so many places to pick up […]
At almost 50, I’m never doing a gut remodel again. Everyone who has survived one has the same thousand-yard stare. It’s the look of someone who spent two years arguing about grout color and waiting on inspectors who never show up when they say they will. Remodeling might be the most unpleasant thing you can […] The post Buy The Finished Home, Skip The Remodeling Misery appeared first on Financial Samurai.
I track all of our family’s expenses and make plans for all of our spending every month. I’ve been faithfully budgeting and living frugally for thirteen years. You might not think that doing a budget audit would yield very many opportunities for saving when our family is already locked into budgeting and frugality. I’m excited to surprise you! We are in the middle of a tight financial season right now due to multiple reasons. I […]
One objective of tax planning is to limit income taxes paid during one’s lifetime. To my mind, it is exceedingly difficult to present an entire adult lifetime tax arc in a single projection or spreadsheet. This is for many reasons, including the fact that we don’t know the date of death. What I think has […]
Firstly, thank you to everybody who purchased the new book Household Cybersecurity over this last week! If you have any questions about the material, feel free to ask, as you’re probably not the only person with that same question. If you found the book to be helpful, please consider leaving a review on Amazon (or Goodreads), as that’s the best way to help others find the book. Other Recommended Reading 4 Practical Uses of TIPS […]
As Benjamin Franklin famously put it in a Constitution Center letter from 1789: “In this world nothing can be said to be certain, except death and taxes,” these two things, death and taxes, are certainties … Read more
DIY Investing vs. A Financial Planner: What Each Really Costs You Over 25 Years Are you wondering whether to hire a financial planner or DIY invest on your own? I hear this question all the time, and it’s personal for me right now, which I’ll explain below. Start with the number that gets everyone’s attention: a 1% fee. The average financial advisor charges approximately one percent of assets under management. It sounds like nothing. But on a $500,000 portfolio, that’s $5,000 a year, and over 25 years it can cost you more than half a million dollars. And that’s assuming that your portfolio value remains constant! This article may contain affiliate links which means that – at zero cost to you – I might earn a commission if you sign up or buy through the affiliate link. Does that mean you should never hire a financial planner? Not exactly. Let’s break down who should DIY, who should hire help, and the middle option that most people overlook. The Math: What a 1% Fee Really Costs Say you invest $500,000 and earn 7% a year for 25 years. With no advisory fee, you end up with about $2.7 million. With a 1% fee, your return drops to about 6%, and you end up with about $2.1 million. Same portfolio, same market. Roughly half a million dollars or more goes to fees. The Case for DIY Investing Self-directed, or DIY investing has a lot going for it. Lower cost. A simple portfolio of low-cost index funds or ETFs can cost a fraction of a percent per year. A basic U.S. stock market index fund like Vanguard Morningstar Total Stock Market ETF (VTI) has an expense ratio of 0.03%, while an international stock ETF like Vanguard FTSE Developed Markets Index Fund ETF Shares (VEA) charges the same low rate. On a $100,000 investment, the annual expense ratio of 0.03% equals $30. No additional fees apply! Full control. You decide what you own and when you change it. With a modicum of financial and investment education, you can learn how to to invest, and decide which investments fit your goals. Simplicity. A basic three-fund portfolio of U.S. stocks, international stocks and bonds does the job. Since each ETF owns thousands of individual companies, three ETFs offer excellent diversification. Solid performance. If you worry that a planner will deliver higher returns, that’s debatable. Plenty of data suggests index funds, which mirror the market, generally outperform most actively managed strategies. Tax efficiency. Taxes also make a difference when investing. In a taxable investment brokerage account, trading can rack up short term gains, which might up your tax bill. Whereas, investing in index funds, which have minimal turnover, tends to keep taxable gains at bay. [embed]https://youtube.com/watch?v=oHvlSW9iDCM&si=Ko7nc9FUtbfSzGmy[/embed] The Case for a Financial Planner A good planner is not just building your portfolio. You’re paying for something very different from asset management. Behavior coaching. The biggest wealth killer isn’t necessarily fees. It’s panic selling in a