5 things for which smart people never pay the full price
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Rich people don’t get wealthy by spending money frivolously. Some wealthy people have earned their first million on their own and therefore live stingily. Others simply prefer to spend little and save a lot.
However, both lead to the fact that there are some things that successful people do not pay full price for.
1. Cars
According to Brian Davis, a real estate investor from" Spark Rental" , successful people never pay full price for cars.
„The rich know that everything in life is negotiable", Davis said. „Every service, every commodity and even many physical products are negotiable. And the trick to negotiating is to find other things that the other person wants, besides money.“
He explains that car salesmen and car dealers not only want to sell as much as possible, but also need to get rid of a certain number of vehicles per month. „A smart buyer comes into the dealership on the last day of the month and says he’s buying a car, but won’t pay anywhere near full price for it. Then he asks what is the lowest price he can be offered.“, Davis said.
It’s not just successful people who don’t have to pay full price for cars- the rest of us can also use this strategy. If you’re looking to buy a new car, Davis suggests, check the Internet for prices on models you’re interested in. If the salesperson won’t sell you the car for the price you want, don’t be afraid to walk away again.
2. Consumer goods
Wealthy people enjoy roaming the aisles of luxury stores. But the truth is that they rarely spend money there. „Millionaire Corner", a news site for the wealthy, surveyed 1.200 investors on which stores they prefer to store at.
Among respondents with $5 million in net worth ($4.56 million. Euros) or more, Home Depot, Lowe’s and Target were among the most popular retail stores. Nearly half of those surveyed said they like shopping at Costco.
Cheap retail chains aren’t just popular among business people- Celebrities love these deals, too. Gwen Stefani, Heidi Klum and Kylie Jenner are also all Target fans. Jessica Alba, Zac Efron and Shia LaBeouf regularly storm Home Depot, while Britney Spears, Rihanna and Justin Bieber have all been spotted at Walmart. Stars are just like us!
Wealthy people not only shop at low-cost retail chains, but they also love to use coupons. Even though, according to Forbes an equity of 31 million dollars (28,24 Mio. Euro), Carmelo Anthony uses coupons to save money on shopping. „ I always clip coupons from the newspaper before I go shopping so I can then save a dollar or two", Anthony told "CBS Denver".
Actress Kristen Bell herself admits that she is a cheapskate. She loves to use coupons when shopping. „I shop almost exclusively with coupons", she told talk show host Conan O’Brien. The actress, who jokes about offering her neighbors 20 percent coupons from Bath& Beyond to swipe said, "If you buy a bedspread, air freshener or whatever, it can save you more than $80 (73 euros).“
These days you don’t have to take flyers to stores or snatch coupons from your neighbors- Coupons are now available online. Discounts on everything from clothing and electronics to diapers and makeup can now be had with just one click.
3. Travel
The richer you are, the less you pay for certain luxuries like travel. According to a study by Fidelity, 55 percent of all credit card holders have a credit card with rewards. While cashback is the most popular reward, free travel is also high on the list.
Successful people use their buying power to get free flights or upgrades to first class. And if you really have a lot of money, you can put more money on a credit card- and pay it off again- To earn as many points as possible.
There are a few ways to get a luxury trip at a bargain price, even if you’re not wealthy. For example, there are many credit cards with travel rewards even for regular consumers.
With a little strategy, you can also get free airline tickets, hotel rooms, rental cars, or an upgrade to first class this way. There’s even a service called JetSuite where you can book spontaneous flights for the next day- and do it on a private jet starting at $129 (117 euros) per person.
4. Real estate
While an average kudne pays about a six percent commission fee* to real estate agents, successful people usually pay much less- Especially when selling their homes.
„Successful people never pay six percent commission", said Sissy Lappin, author of "Simple and Sold" and founder of ListingDoor. „They always negotiate when they sell a house.“
This strategy is especially helpful if you are selling a home that is worth several million. For example, a $2 million (1.82 million. Euro) house to a real estate agent 120.000 dollars (109.220 euros) if they take a standard commission of six percent.
If you negotiate the rate to three percent, you can get as 60.000 dollars (54.610 euros) save, the broker still gets auppigen check.
Even if you don’t have a house worth several million euros, you can negotiate a better price. According to "Zillow", an information site for home buyers, buyers should make a proposal that is at least ten percent below the price they are willing to pay. Also, ask for furniture and household appliances that you would like to have.
You should also get the seller to set a move-in date of your choosing. In the worst case, he does not agree.
5. Higher Education
Many private colleges lower prices for families rich enough to pay for a full education. This is known as merit aid and is meant to attract wealthy students to colleges.
Among the elite private schools that offer financial aid is George Washington University, which funds 20 percent of freshmen, also Tulane University at 37 percent and Washington University in St. Louis with 14 percent, as the "Washington Post" communicated. In 2013/2014, Duke University awarded an average of 56.000 dollars (50927 euros) annually to 67 freshmen with no financial need.
Merit aid is certainly not something all students can take advantage of. But there are some ways to still get your studies financed. „Forbes" reports that there are some colleges in the U.S. that do not charge fees, as well as Barclay College.
The prestigious Curtis Institute of Music in Philadelphia also covers the cost of each student enrolled. While many military schools do not cover tuition, they do obligate students for up to five years after graduation.
* in the USA 6 percent, in Germany depending on the federal state up to 7.14 percent