photo credit: Phillie Casablanca
Maybe your are at a cell phone store talking to a salesperson, when you find out that you can upgrade to a new phone and contract. You really just wanted to keep your existing contract, but that new iphone or Blackberry would be really amazing. What do you do when faced with a tough financial choice like this one? Do you make a quick decision, tell the salesperson you need to think about it, or call a frugal friend for advice? You might consider yourself frugal, but when faced with a choice, you sometimes like to splurge. You could probably find 10 reasons right now why you want a new iphone, but do you need one? Your frugal friend could be a mother, father, aunt, uncle, cousin, or even your spouse. Have you ever thought of calling a frugal friend to help with a tough financial decision?
What are some ways calling a frugal friend can help save you money?
1. Negotiating prices. If you are buying a car or large ticket item, it might be wise to call a frugal friend and get a second opinion. Buying a car can be very stressful and many numbers are thrown at you all at once. A friend can help you think through the purchase and make sure you are not buying some extras you don’t need. Do you need a security alarm installed by the dealer or used car warranty? Maybe you could find a third party who is cheaper.
2. Signing a contract. You utilize a real estate professional or attorney in some states when purchasing a home. Do you utilize a professional or third party when signing a cell phone contract? Do you understand early termination fees, text messaging rates, or internet usage charges? Many people are surprised by these fees and might have avoided them if a friend helped you read through the contract before signing.
3. The upsell. You might not even now it is happening, the upsell. Now you shouldn’t call a friend when you are being upsold at the movie theater. The typical upsell involves asking the customer if they want to purchase the large Coke for only 25 cents more. It’s a brilliant strategy, and I admit to falling for it. What about at the electronics store? Did you buy the warranty for your new pair of shoes? It only cost $10, but did you read the contract? Does it cover normal wear and tear, or only defects?
4. Jewelry. If you are buying or selling jewelry, do you know how to negotiate? If you are buying a diamond engagement ring, do you take a buddy with you that’s married. A married buddy has already research diamond rings and can offer you some invaluable money saving tips. Knowing your personal budget and making sure you have a plan for paying off this purchase is probably your first step. If you are close with your buddy, you can discuss your budget and spending limit before entering the jewelry store. You will probably be shown some rings that are out of your price range, and your buddy can give a nudge or cough to bring you back to earth. You and you new wife will feel much more happier starting your marriage off debt free.
5. Customer service. Next time your frustrated with a poor customer service call or situation, call a friend and calmly discuss the situation. I had a co-worker who was also a wonderful friend offer to help me deal with a car dealer. The dealer would not offer to fix my car as they said the damage was a pre-existing situation. I new I had never been in an accident, but couldn’t prove it to the dealer. My co-worker had a similar situation and took it to another independent dealer to examine the damage. I took the car to another dealer and they found that the car had been in a severe front impact accident and I then took the report to where I purchased the car. They fixed the damage and gave me a loaner car during the repair process. Listening to my frugal friend helped me emotionally and financially.
Many of us live busy lives and don’t think twice about signing a contract or buying something nice for ourselves. But, what if a quick phone call to a friend who is also frugal and has your best interest in mind. Most people wouldn’t care if you purchased an iphone and didn’t really need it. A friend who cares about your financial health might be able to offer you a second opinion on your larger financial decisions. I have benefited from having wonderful friends when looking at real estate or researching home loans. I would imagine my frugal friends have saved me thousands of dollars over the years.
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I like this idea of running things by someone you trust. It can help you avoid making costly mistakes in some cases.
Great Advice! I remember learning about “the four C’s” from a recently-engaged friend, and it sent me along my way. I did so much research, that I’d be a great help to my single friends.
In the same way, I have to remember to ‘phone-a-friend’ when it is their little area of expertise. For one, they usually know better than you do. For another, it builds up that relationship and fosters confidence in them that you value what they know, even when it’s not an emergency. Often times, we only contact others as a last resort.
This is a great list. I definitely always have advice to give (and need it myself) in these situations. Taking a step back to make the call is not only great if you need some advice, but it also allows you to gain some perspective on your decision and make the right one.
It really helps to get an advice from a person who knows a particular thing better than you. I usually get a first, 2nd and third opinion (including my own) to arrive at a decision. You get to learn in the process too.