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Beware of the salesperson’s killer punch – The Assumed Close!

A good salesperson (in the context of someone who sells a lot of stuff), rarely asks directly for ‘the sale’. Instead, they have carefully crafted questions that will have you saying ‘yes’ and nodding your head. You’ll know the assumed close is coming when they go up a level with their questions, such as “What colour do you like of the ones we have on offer?’, “What will your friends think of this?”, and “When do you need it by?”  Eventually they deliver a line similar to this, “Well, all we need now is your autograph right here and it’s all yours to enjoy!” – Kerching! – Next prospect please.

Negotiating with as salesperson –  Avoid saying ‘yes’ in the conversation with a salesperson. A common sales trick is to get you saying yes to minor questions, where yes is the obvious answer. For example, ‘Do you like shopping here?’ (yes) ‘The weather is great today? (yes). All these minor ‘yes’ answers have you in the habit of saying yes and beautifully warmed up for the big;  ‘Yes -I’ll buy it now please!’

Don’t buy it, sleep on it! The oldest trick in the book of sales is to create a sense of urgency. For example, “This special offer ends today” and “This offer is only for the first 50 callers”. It is very easy to get caught up in the hype, so best to avoid it all together by removing yourself from the situation and sleeping on it.

Save power and water in the shower – Have a quick shower, shower with your clothes on, shower with a friend

Understand ‘The Law of Reciprocity’ – (responding to a positive action with another positive action). Ever been given a free gift on the way into a shop? Balloons for the kids? Free make-up? Free taste test? Well, the expectation of salespeople from ‘the law reciprocity’ is this – By giving you something (for nothing), will make you feel bad if you don’t give something back and the only way you can give something back is to…buy something! Or as the old saying goes ‘There’s no such thing as a free lunch’.

Save power – Adjust the time setting on pumps for swimming pools and spas so that they run at ‘off peak’ times. While you’re at it, run dishwashers and washing machines also during off peak.

Do you have cable TV? If so, ring up the supplier and tell them you can’t afford it and ask, “What can they do to reduce the cost?”. You could be surprised with the savings they come up with.

It’s become cool and trendy to buy second hand clothes. Join the cool dudes with a new outfit from your local charity shop. You’ll also feel better for helping a good cause.

Keep all your receipts in the one place. An easy option is take a photo of the receipt and up-load to your PC for safe keeping. Better still, use a ‘cloud storage service’ to store them safely online.

Grocery shopping is best after you have eaten a good meal. Shop while hungry and you’ll end buying all those snack foods. Apparently a hormone ‘ghrelin’ is released when we are hungry making food look more tasty.

Racing around town by car from shop to shop to save a few dollars will more often than not, cost you more in the long run. Fuel along with wear and tear is noticeable but the big cost is depreciation. Those extra miles on the clock will lower the resale value of your car.

Instead of counting the number of years to retirement, count the number of Pay Days you will have before retiring – That’s far more likely to kick start your retirement planning!

Avoid investment scams – If it sounds to good to be true, it normally is. And, if you can’t understand the investment, walk away. See also Five Ways to Save – Financial Advisor for more tips

Why Advisor and Investment fees hurt– A combined advisor and investment fee of 2%, on a portfolio starting balance of $100,000 and invested over 20 years at an average interest rate of 8% will cost you $145,383 in fees. Or to put it another way, instead of having a balance of $466,095 you end up with $320,713… OUCH!!. You can do your own calculation using the easy to use, Investment Fee Comparison Calculator on the Calculators page.

The easiest way to gain financial security is to Save first and Spend later. Be committed and direct a portion of your salary to a separate savings account, each and every pay day.

Don’t allow tax to to become a driving factor for your investment choice. First and foremost you should always focus upon a portfolio of quality investments that best suits the investment risk you are prepared (need) to take.

If your Financial Advisor talks more than he/she listens during your meetings, start looking for a new Advisor. (See also 5 Ways to Save – Financial Advisor)

The simple truth about buying a shares – After all your research that convinces you to buy shares in a certain company, for you to buy the shares, you need someone to be just as convinced that it is time to sell those shares!

Make price negotiation a habit especially for major purchases. You’ll be amazed how much you can save just by asking for a better price and the more you practice, the better you will be.

Prevention is better than the cure – Understand the financial risks of all contracts and make sure these risks are protected before you sign. This can often mean getting an expert to advise you on the risks.

You have probably insured the house and car but what about insuring the machine that allowed you to buy the house and car? That machine is you (your ability to earn an income) and you should be insured.

Are you like most people a creature of habit and end up spending your money on ‘goods and services’ from the same places? If yes, look to shop around and start practicing your new negotiating skills!

From today – Do not spend more than you earn.

Credit cards should not be used if you cant afford to pay off the entire balance each and every month.

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