Day 12 - Buy Items in Bulk During Discounts and Promotions

After turning my personal finances around just by spending 60 minutes every day on small projects I decided to share everything I learned to get my self in a better position when it comes to money. I will be serializing all the 60 minute projects so other people can try them to get their finances in better shape. Most of these tasks will take no more than an hour and it's those tasks that we love to put off. So join me from Day 1 to Day 13 to see if you can get yourself in a more prosperous place financially.

Day 12 - Buy Items in Bulk During Discounts and Promotions

One of the most important things that I learned when practicing frugality was cost per unit. Cost per unit is just the price of the item divided by the amount of units in the item. If a pack of diapers cost $10 and there's 100 diapers in there (I wish) then the cost per unit is 10 cents. Sometimes the cheapest item you find is not the cheapest relatively, you can only be sure by working out the cost per unit to find the best deal. The greater quantities you buy the cheaper it becomes, buying in bulk during special offers and promotions can save you more than 50% on your grocery bills provided you keep your ear to the ground. Most people avoid buying in bulk because they have to pay more up front however the savings they make far outweigh any argument they might offer.

In the next 60 minutes you need to work out with a reasonable degree of accuracy all the items that you need in a year that can be bought in bulk. Your calculations should be based on a year and should look something like this.

1. Toothpaste X 12
2. Shampoo X 4
3. Rice Bags 5 KG x 7
4. Soap X 10

You should have a very big list and this should account for all the items you would need in a calender year. Go through absolutely everything, the more accurately your list is the more money you can save.

Once you've made your list you need to train yourself to keep your eyes peeled, this means that WHENEVER there's an opportunity to buy something at a discount or promotion you should grab it and buy in bulk. Suppose you need 12 tubes of toothpaste in a year and there's a discount of 50% on the toothpaste you buy at your local supermarket, you need to then buy these items in bulk and bank the difference. This means that if you were to buy 12 tubes of toothpaste without the discount it would have cost you $24, after the discount you're only paying $12, you've saved the other $12 which you can transfer into your savings account.

It's really important to bank as you save money. Most frugal people just get a high from the savings but where does the saved money actually go? if you buy, save and bank the money you know that your efforts are being rewarded.

You should aim to buy everything at a discount or promotion. Try to get everything for half price, this means that if you spend $2000 spread over a year on these items you can get them for $1000 if you buy in bulk. One important point to mention is that when you buy in bulk you need to make sure you use the item frugally. Sometimes people overuse items because they know that they've got a surplus amount of products. The items you buy for 12 months should not last less than 12 months, they should last 12 months or more. If you can extend them to 18 months then you'll be saving even more.

You should also notice a drop in your monthly shopping bill or weekly shopping bill. This is because the bulk buying is reducing your monthly and weekly bills. If you spent $200 per month then there's a good chance you'll only need to spend $100 to $150 per month. There's a tendency for people to spend more when they are under budget, what you need to understand is fall is due to the bulk buying and you need to remain at the lower level otherwise there's no point in saving the money.

Buying in bulk during 50% discounts can really help you slash your grocery budget. If you spend $5000 on groceries then you only need to spend $2500 and bank the rest. You'll need to go out shopping less often and use less time if you buy in bulk which means you can use your time more effectively doing things that are important. Always remember bulk buying during promotions and you'll guarantee to save and bank money.