Financial advisors help clients in many ways, some very unexpected. Each time you do, you are strengthening the relationship. Today many clients are worried about inflation. Some live on fixed incomes. Others earn a salary or are paid by the hour. Prices seem to have shot up, but incomes haven’t followed. How can you help your client save money?
Ten Ways To Save Money
Everyone likes to save money. There’s a great line from Crazy Rich Asians. It’s something like “No one likes free stuff as much as the rich.” When you share money saving tips, you get people’s attention. These are a few my wife and I have discovered over the years.
1. Buying cheap gas. Check out your local Costco. In New Jersey, you don’t need to be a Costco member. Here’s the big plus: Costco draws a radius around the store, checks local gas prices within that radius and prices itself as the cheapest. A few days ago, when regular was about $3.15/gallon, Costco was charging $2.99/gallon. The best buy is often premium, which was about $ 3.39/gallon. Gas at Costco can only be paid for by Visa card. They don’t accept cash.
2. Groceries at great prices. Two German grocery chains have been expanding their footprint in the U.S. market. They are ALDI and LIDL. ALDI has the bigger footprint, but we prefer LIDL. Both are good. Staples like eggs and butter are quite inexpensive. My favorites include the shrink-wrapped 8 oz. beef tenderloins at $ 8.50. Having filet mignons on hand makes entertaining so easy. Each week, we buy a dozen long-stemmed roses at $ 7.99. They last one to two weeks. The stores are modern and clean.
3. Stylish clothing. The Irish brand Primark has been making inroads in the United States. It does for clothing what IKEA does for furniture. We are talking casual wear like jeans, polo shirts, gym wear, footwear and more. Here’s a typical example. My wife bought me a wonderful straw summer hat a few years ago. After numerous discounts at Lord & Taylor, it came to about $35.00. Primark has their version, substantially identical at under $10.00. On a trip to England one year, instead of carefully transporting the hat back and forth one year, I went to Primark in London after we arrived, spent about $7.00, wore the hat for a week and gave it away before returning home.
4. Inexpensive restaurant dining. We return to Costco. In our area, there’s a 300+ year-old restaurant, the William Penn Inn. Prices are on the high end of reasonable. Costco sells discounted gift cards for the restaurant: $100.00 in gift cards costs $80.00. Your local store likely has a relationship with one or two local, high profile restaurants with a similar deal. They also carry similarly discounted gift cards from a few national restaurant chains.
5. Furniture and home décor. IKEA gets better and better. You might know they have a mindset running counter to inflation. When a supplier makes a product, they assume they develop manufacturing efficiencies over time. When they renegotiate contracts, they expect a lower price, which they pass onto customers as savings. It’s how they keep prices like their BILLY bookcase units low over time. Although you associate IKEA with furniture, it’s great for housewares like dinner and cocktail napkins. Does anyone leave IKEA empty handed?
6. ReStore (Habitat for Humanity). Everyone loves their mission. Building homes is a noble pursuit. One of the places the funding comes from is their line of shops called ReStore. Developers have extra lighting fixtures left over after they build a new neighborhood. They turn up here, in original boxes. Ditto the furnishings for the model homes. The ReStore near Cherry Hill, New Jersey, has a rug connection. They have mountains, with new shipments every week. Sisal (Jute) natural fiber rugs have a texture reminding you of rope. Regardless of size they were $10.00 each. How we fit the 12x15 rug into the car remains a mystery. They are often new, complete with tags.
7. Local contractors. NextDoor is a social networking service for defined local areas. Neighbors talk about all sorts of stuff, but I think the great strength is getting practical advice. If you want to change trash collection companies, need a lawn mowing company or an electrician, you post the question and your neighbors share their experiences, both pro and con.
8. Buying timeshare units. They might have a bad reputation, but not all companies are the same. There are some firms connected to global brands. Years ago, a friend passed on this advice: To buy timeshare units at attractive prices, make friends with some attorneys who settle estates. Timeshare units are notoriously illiquid. You might be able to get a good deal as part of an estate settlement. Obviously the lawyer needs to act in the best interests of their client.
9. Cruise vacations. In the course of my writing, I’ve come across a business called CruiseCompete. It’s a network of travel agents. You pick your ship, cruise number and type of cabin. This goes out to a network of travel agents, several of which e-mail you quotes for the trip you want. Often the value or benefit is in the stateroom cash credits they include for onboard spending. It’s nice to see people competing for your business.
10. Hire an accountant. It’s easy for the average person to do their own taxes. When you take this route, you are often paying the government “what they ask for” instead of “what you owe.” Taxes are very complicated, but this also means there are opportunities the average person might overlook. You can determine if the potential savings justify the cost.
You will likely find when you start talking about saving money, people will want to hear what you have to say. They will likely introduce you to their friends too.
Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, Captivating the Wealthy Investor, is available on Amazon.