Many people are considered "cheap" if they pursue bargains or seek out the most economical sources in town for products or services. Yet, when people need advice on where to shop because of an unexpected major purchase or financial emergency, they run to the "cheapskates."

Why? Because they see the wisdom of saving every possible dollar in order to use their money in more productive ways.

The following list of money saving tips is not meant to be exhaustive. It simply represents ideas our family has used to allocate our resources efficiently and accomplish our financial priorities.

Buy used, especially for major purchases. Contrary to popular belief, buying used is not risky and does not take a lot of expertise. It does take planning and a little bit of elbow grease.

A few years ago, we needed to buy a refrigerator. New refrigerators at that time cost about $750, way more than we had in cash after purchasing our first home. We decided that buying "used" was our best option.  

First, I studied refrigerators in Consumer Reports. Second, I began scanning the classified ads and made a lot of telephone calls. After you become adept at classified shopping, you soon learn how to screen people who are overselling or "hyping" their merchandise and those who sincerely have a genuine reason for wanting to sell.

The result: I bought an almost new frost-free refrigerator for $250. There was nothing wrong with the refrigerator except that it was the wrong color for the seller's new home!

One of the main points in buying used is that, if at all possible, you should anticipate your need. If you know you are going to need a new appliance or a car, begin shopping three to four months before replacement becomes necessary.

The following are items we have bought used: automobiles, television, audio equipment, refrigerator, furniture (all types), children's clothing, and tools. One of the most obvious items to buy used is a car. Studies indicate that new cars depreciate as much as 20%-40% in the first year of ownership. Let someone else pay for that depreciation!  

Rent. Some things you just don't need to own: timesharing arrangements, boats, major tools, the list goes on. It amazes me how easy and cheap it is to rent state-of-the-art equipment, return it when you want to, and not have to worry about maintenance, depreciation, obsolescence, property taxes, etc.

Comparison shop. If you need to make a major purchase or have major repairs done on your car, get more than one estimate. Often the prices will vary by hundreds of dollars. The same holds true for your annual auto insurance and homeowner's insurance.

Pay cash. This offers two advantages. First, you may be able to buy an item for less by offering cash instead of charging. Second, it forces you to "count the cost" of each purchase more carefully. You won't make as many impulse purchases.