While snowed in during last February’s historic snow storm on the East Coast, my wife and I went through our CD collection. We found CDs that we either had not listened to in years or CD cases that we never even cracked open — a total waste of money.

 

I remembered that a local entertainment store gave store credit in exchange for used DVDs and CDs. After exchanging our items (a few unused CDs and video games that we had mastered), the grand total in-store credit was over $100 dollars! 

 

We purchased other items with the credit and I only spent $0.40 after the trade-ins! I see it as recycling my music and my money.

 

Of course, the best thing to do is save your money in the first place. But how do you fend off that most common impulse of American culture, to just buy something (as we often are prodded to do via TV ads)? Do yourself and your wallet a favor by taking these steps:

1. Take inventory. Look at what you already have at home before you head to the store and leap into your wallet (or purse) to make a purchase. Are there items you haven’t used in a year or more? Ask yourself, “What can I do without or ‘recycle’ (e.g., music that was once trendy, but is now corny or embarrassing to have on your shelf)?” Are there other outdated “valuables” in your closet? Could you donate them to charity and claim them on your taxes? IRS Publication 526 has plenty of information on what qualifies.

 

2. Make a list. Instead of wandering aimlessly through the mall and increasing the risk of spending more money than you originally planned, write a list of the items you need. A list will help you stick to your plan and save your money (see #3 below).

 

3. Save your money. Take the money you would have spent on DVDs, CDs, video games or some other “toy” and put it in your savings or another accessible liquid account, so can get to it when you need it. Instead of spending your money on fads that can quickly fade, build up your emergency fund. If you need to, start by depositing small amounts and add more when you can.

 

As you can tell, I’m a big fan of DVDs and CDs. They are great forms of entertainment, but they can be little comfort when you have an unexpected event in your life.