Making more money isn’t the only way to enjoy greater financial stability. By increasing your buying power, you can stretch your dollars further through access to better products and prices.
Boosting your buying power isn’t as simple as taking on a new side hustle, though. Anyone can make more money by working more hours. Increasing your buying power is about being smarter in your purchases, lifestyle, and financial strategy in order to succeed down the line. While this might take some work on your part, it’s better than simply taking on more work.
To pump your financial muscles without adding to the grind, you must focus on the little things that happen in between the budgetary lines. Check out these essential tips to boost your buying power.
Have confidence in your customer value
Leverage strength in numbers to get more from stores and memberships. According to whatisagpo.com, just as group purchasing organizations help businesses get better deals in their industries, consumers who band together enjoy much better savings than those available to the general public.
Compare the bulk stores in your area, such as Costco and Sam’s Club, then get a membership at the one that makes the most sense for you and your family. Maybe you don’t need 200 rolls of toilet paper or enough peanut butter to feed a small army, but you will use those products eventually. Bulk stores also offer great deals on bigger household items, including furniture and appliances, so take advantage of everything your membership offers.
Stores aren’t the only places where your membership matters. Consider joining local clubs or your alumni association to get access to even more deals.
Join forces with other companies
While business can often feel like a winner-take-all game, it doesn’t have to be. Companies both in and out of your sector have insights they can offer you, and working together can make everyone more successful along the way.
Consider creating research coalitions or even just pairing together to take on a large-scale project. If your business’s buying power is too weak for a certain investment, find another company to join in the venture with you. Combining your budget with that of another business can give you access to opportunities you likely wouldn’t have otherwise — making the cost of collaboration well worth the payoff.
Build your credit score
Like it or not, businesses and banks gatekeep access to the best rates and products based on credit scores. You can buy a car with a low credit score, but you could end up paying several thousand dollars more than someone with a perfect profile if your score isn’t up to snuff.
Improve your credit score quickly by paying off any accounts in collections. Try not to miss bill payments, but if money gets tight, call your provider and explain the situation. Many will work with you to skip a month or take a reduced payment. Get a credit card and use it to pay your bills, then pay the balance in full every month.
Some people may tell you to keep a balance on your credit cards to build credit. Don’t listen. Paying interest does nothing to boost your score, but it does take money out of your pocket every month.
Prioritize long-term investments
Your savings accounts, brokerage accounts, and retirement accounts can help diversify your assets and allow you to keep an eye on the future. Start paying yourself first with every paycheck by putting money into savings and investments. You don’t have to reserve much — even $20 per paycheck, over time, will add up to a nice chunk of change that will allow you to make better financial decisions.
Many home and auto loans, for example, depend on the size of your down payment as well as your credit score. You may have a clean history, but without cash on hand, many lenders will treat you as a second-class borrower anyway. Put money into savings and investments so that, when the time comes, you can be more selective about where and when you make your next big purchase.
Get out of debt quickly
Not all debts are created equal. Credit card debt, for example, usually carries a much higher interest rate than student loan debt. Instead of paying an equal amount every month toward all your debts, pay only the minimum amount on everything but the debt with the highest interest rate. Once you pay off that debt, move down the list and focus on the next highest rate. This way, you will finish paying your debts more quickly and spend less money in the process.
Exceptions exist to every rule, so don’t get discouraged if this strategy feels difficult. If you have a $1,000 car loan with a rate slightly lower than your $40,000 student loan, you may feel more accomplished by paying off the car loan first. Owning an asset outright can also be beneficial in case of an accident or theft. Don’t let high-interest accounts sleep on the back burner but feel free to adjust your schedule by a few months if the situation merits.
Increase cash flow
Bringing in more revenue is the ultimate “easier said than done,” but its impact on your buying power cannot be understated. Lenders and vendors alike are more interested in businesses that have a proven track record of taking in cash, so businesses interested in boosting their purchasing power should make revenue their first area of focus. As any business leader knows, there’s no magic wand to wave and make more money — but some options like short-term increases in marketing can increase cash flow enough to catch the attention of some of the bigger players.
Companies are out to get your business, and it’s up to you whether to grant that request. Don’t let the debt collectors get you down and try not to compare yourself to other people making more money. You deserve fair treatment, good prices, and prime rates. With a little effort, you can dig yourself out of the grind and make your money work harder for you now and in the days to come.