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Want to save money? Don't bulk buy!

Ok, you got me. That isn't really accurate. You can save money by buying in bulk - if you do it right. But most of the time, households are better off just managing their cash flows.

First off, yes you do get a lower price (per unit, that is) by buying in bulk. But it's not that straight-forward.

And good personal finance decisions often can be analogous to what a responsible company would do in similar situations. Taking stock of your personal net worth is pretty much a company's balance sheet. And assessing your cashflow is like a company's income statement.

And since companies buy in large quantities, it makes sense that we should do so if we can, right?

Actually, no.
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This post first appeared on Personal Finance Apprentice, please read the originial post: here

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Want to save money? Don't bulk buy!

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