Use "Inventory" When Money Gets Tight

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Use "Inventory" When Money Gets Tight

Submitted by: Jennifer Thieme 07/16/2009 12:46 AM

Here's something I read recently on a different money-saving site. The post was about coupons and how best to use them. Here is a small snippet:

"Forget whether or not you 'need' something, you�ll want to stock up on non-perishable products when they�re cheap, even if you don�t need them."

I don�t necessarily agree with this. Buying non-perishablies is like buying inventory. In the business world, inventory sucks your cash and has to be managed very carefully. Too much inventory possibly jeopardizes your cash flow.

Cash is always king, but even more so in a tight economy. If the personal cash flow is good, and forecasts indicate it will remain good, then go ahead and stock up on non-perishables. But if cash flow is bad or the future indicates that it may worsen, then only buy what you need now, and save the cash.

I�m sure many of us reading this have a TON of "inventory" in our homes... canned goods, dried beans, dried pasta, hair spray, bars of soap, lotions, shampoos, conditioners, razors, etc., etc., etc. With money being tight it would be wise to start using our "inventory" rather than buying new stuff.

I actually went through my kitchen and bathroom cupboards and took a personal "inventory" of all the stuff there! I was surprised at all the "inventory" I have. I'm going to use it before buying a replacement - it saves cash, and cash is king.

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Comments:

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I agree with saving cash except that inflation is predicted. When you have inflation or even worse, hyper inflation, your cash will buy much less than prior to the inflation. With inflation, you will wish you had bought up some non-perishables while you could afford them because the amount of cash you saved will not be enough to buy anything you need.

Posted by anonymous on July 16, 2009 1:20 PM

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Keeping inventory of perishiables doesn't ever work for me. Even some processed food items don't last very long.

BUT, non perishables are very handy to keep on hand. Things such as toilet paper, shampoo, conditioner, tooth paste, litter, and cleaning supplies. These things hardly ever go bad. Even though I have a decent inventory, everything I got was dirt cheap. And now I don't 'buy' any of the above UNLESS it's dirt cheap or cheaper, like free (with doubling coupons and sales)!

Posted by anonymous on July 16, 2009 2:22 PM

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The idea of stockpiling and buying non-perishables when they are cheap is that not ALL items will be on sale at the same time, thus you are consistently using AND stockpiling alternating items all the time.

I won't continually buy cans of cream of mushroom soup, for example, until my supply is low and it goes on sale again. This way you don't have to buy the same items every time or even once a month when you go shopping - you may only have to buy bars of soap or dishwashing soap once or twice a year if you stock up, and so on.

We constantly check our "reserves" before heading to Sam's or Aldi's, and alternate WHAT we buy each time we intend to stockpile items. If I have several boxes of detergent in my stockpile which I've already purchased on sale, I won't buy it the next time it goes on sale - I'll wait till I'm down to 1 or 2 boxes and then buy it when it's on sale again. Even though I know it will get used, I could use that money to stockpile some other item I'm low on at the time.

This saves us a ton of money in the long run, and we can take longer in between grocery shopping. It stinks to run out of a non-perishable item that is consistently used at our house...when this happens I usually end up spending at least another $50 at the store because I see items I WANT, but don't necessarily need. If I had never gone into the store, I wouldn't have bought the extra items! I can buy eggs, bread and milk at our local convenience store cheaper and fresher than at the grocery store or Wal-Mart, believe it or not! Most of their other items are definitely NOT cheaper, but when all I need are the staples, that's all I buy there. Make sense?

Once you get the hang of stockpiling AND using those items up in a rotational manner, it's a huge savings!

Posted by anonymous on July 16, 2009 2:37 PM

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I have really noticed prices in stores sky rocketing lately. I like the stockpiling idea but it is true when you don't have the extra money it is difficult to do that. At the same time when something is on sale it's hard not to buy because you know next week you're sure to need it and it will cost a lot more.

Do you really think inflation will get worse? If so wouldn't stock piling be a good idea right now to prepare for it? Just wondered......

Posted by anonymous on July 16, 2009 2:49 PM

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Think about non-perishables as potential barter items - in a scarcity situation little things we do to make us feel good about ourselves will have value. I'm thinking dental needs-toothbrushes, toothpaste and floss- as an example of being in expensive and easy to store and transport.
I'm also buying tennis shoes and basic clothing now for my 12 year old daughter. I'm buying 2-4 years out as I believe soon SE Asia will not be dropping cheap goods at our doorstep.
Women tell me the one hygiene item they'd miss most is shampoo. So guess what I'm buying? Also OTC drugs are a good investment. Shelf life exp. dates are boloney. It might mean a 5% reduction in effectiveness; it doen't turn worthless or poisonous after a certain date. Just my 2 cents I hope is helpful.

Posted by Ted on July 16, 2009 3:47 PM

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M+ I regularly check the internet coupons for Job Lot locally. Not only have prices increased, but the internet items show much fewer food items. Likewise, I stock "comfort foods" like chocolate candy bars, hard candies, canned strawberries and the like.

I would urge everyone to think "barter items,", viz., salt, sugar, spices, COOKING OIL there are now more than one million people who barter. For those of us in rural areas, a hand pump if a must (plan B) God bless! Fr. Chuck

Posted by anonymous on July 16, 2009 4:38 PM

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I can see Jennifer's point in the original post. Spending lots of money to stockpile wouldn't be a wise use of money. I do think that having a reasonable quantity of non-perishables on hand is a good idea, though. I've found that it is definitely a money and time-saver for me.

This summer I've been stocking up on toiletries, canned goods, pasta, cereal, and paper products (all purchased on sale with coupons) to avoid painful trips to the store during the busy school year.

Posted by anonymous on July 16, 2009 9:30 PM

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Ted- Oh my. How does your 12 year old daughter feel about you buying shoes and clothes 2-4 years out? I have a daughter that age and although she is not a slave to brands yet, she definitely has her own ideas/taste. In 4 years your daughter will be 16 - can't imagine a 16 year old wearing anything purchased that far in advance! Not worn is a waste of money.

Posted by anonymous on July 16, 2009 9:47 PM

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One of my kids's favorite gifts they get for Christmas from me is what I call a'CARE BOX' I get each one a double computer box and fill it full of things all year. I get lots of toiletries,like shampoo, conditioner,razors, deoderent,tooth paste, tooth brushes,dishtowels bathtowels, washcloths,dish soap.All bought with coupons and sales or at the .99 cent store or garage sales and flea markets.I've gotten a lot of things free by buying at the Dollar store and with a coupon.I'll make them bath soap and shower gel homemade.This is stocking up time for me.THEY LOVE THEIR 'CARE BOXES'

Posted by Gale Osborn on July 16, 2009 11:23 PM

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I can't imagine living in a society of not being able to purchase anything and everything at a reasonable price. Who knows. It might happen. I think what Ted is saying he is preparing for when prices sky rocket. It might not be a bad idea to have a few things stashed away like some non-persibles and any teen might be VERY happy to have a dad that put away a nice jogging suit for her.Our kids need to learn the value of money. Food is my pet peve. Teach them to eat what is good and not expensive. Children love to do things that are special and will eat what ever if it's presented in the right way. When your on a tight budget you want to get the most for your money but don't miss out of a great bargain you can certainly use at some point. Cook from scratch. It's a LOT cheaper. When you cook make several meals at a time. Not only a time saver but cheaper.

Posted by Gale Osborn on July 18, 2009 3:35 PM

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I have just recently gone through stockpiled food and have not been very good with using up before going stale so I have actually been throwing away food which is like throwing away money.I will certainly try to use us more so I can get a handle on what I have on hand before running off and buying more. Shame on me but I meant well.

Posted by anonymous on July 19, 2009 1:45 AM

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We stock up on food and I will. I grew up in the country and it could be well over 2 months before we went to town during the winter...winters were harsh.

As previous poster mentioned, its the goods that are on sale and the barn burner blowout deals on stuff we actually use that we score on. It is because of our food stores and emergency funds that we know if something were to happen to my husband or his job...we could still maintain the roof over our heads, and feed us without worry, for almost 8 months.

I think the advice to use up all the inventory in your pantry is not sage advice....when a natural disaster or emergency occurs and/or there is no way for trucks to ship food goods in....then what? Sure when times are tight yes, that is what its for....but do not forget the bigger picture in the long run. Food is an essential daily need, not a "well I might need it" kind of thing.....amazing folks have enough clothing that they would not have to shop for replacements for a year....but only enough food to last maybe 2 weeks.

Posted by Val on July 20, 2009 9:25 AM

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I have to disagree. We live where power goes out frequently, so preparing for such is the difference between comfort and starvation, freezing and so forth. So it goes with food storage - if you use it up and replace it as needed, you aren't going to have anything in certain situations. Then, too, there is the fact that in both situations you are spending the same, except by using inventory of things you do use, you just give yourself an extra day/few days/week/month. You are still going to use it, but you won't have a buffer. Maybe the poster wasn't around for the run on TP years back, or been somewhere the debit cards are out of commission.

Posted by anonymous on July 21, 2009 12:36 AM

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