{"id":7049,"date":"2009-11-02T05:00:05","date_gmt":"2009-11-02T12:00:05","guid":{"rendered":"http:\/\/getrichslowly.org\/blog\/?p=7049"},"modified":"2023-09-28T12:23:13","modified_gmt":"2023-09-28T18:23:13","slug":"large-amounts-matter-too","status":"publish","type":"post","link":"https:\/\/www.getrichslowly.org\/large-amounts-matter-too\/","title":{"rendered":"Large Amounts Matter Too"},"content":{"rendered":"

This article is the sixth of a fourteen-part series that explores the core tenets of Get Rich Slowly.<\/i><\/p>\n

Last winter, Kris and I re-financed our mortgage<\/a>. In one fell swoop, we trimmed our monthly payments for principal and interest from $1386.60 to $1137.69, boosting our cash flow<\/a> by $248.91 per month<\/b>.<\/p>\n

If we had consumer debt, that’s $248.91 per month we have could used for our debt snowball. It’s $248.91 per month we could stick in our retirement accounts, or to put into savings accounts<\/a> for our trip to France next year \u2014 or to pursue other hobbies and interests. Really, it’s $248.91 we could use for anything we wanted. (As it happens, we chose to use that money to accelerate our mortgage payments.)<\/p>\n

Note:<\/b><\/i> Sierra Black gave us an article on this subject in September when she described how she and her husband are sweating the big stuff<\/a>. They made a big change that saved them $1,000<\/i> a month.<\/div>\n

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There’s no question that frugality is an important part of personal finance. It’s good<\/i> to clip coupons and to mend broken furniture and to turn the thermostat down. But it’s even better<\/i> to shop around for the best deal on a mortgage. Everyday frugality can save you a little money consistently, but by making smart choices on big ticket items, you can save thousands of dollars in one blow. Or you can boost your cash flow by hundreds of dollars per month.<\/p>\n

Some people spend so much time sweating the small stuff that they don’t bother to do the same on the big stuff. They’re penny wise and pound foolish, negating their daily scrimping and saving by making poor financial decisions that burden them for years. Kris has a co-worker who once bought an SUV for $43,000. After a year, he decided to trade it in, but could only get $23,000 for it. Ouch!<\/i><\/p>\n

Now obviously, you only get a few chances in your life to save big on a home or a car. You rarely make financial decisions involving tens (or hundreds) of thousands of dollars.<\/p>\n

However, you probably do<\/i> make other big decisions several times a year. You buy a camera or a television or a new piece of furniture. You book a cruise or fly home for Christmas or hire somebody to work on your house. These are prime opportunities to save money. Whenever you anticipate a big expense, you should look for ways to maximize the value you get for your dollar.<\/p>\n

As I’ve shared before, here are the guidelines I use to steer my shopping for big-ticket items:<\/p>\n