5 Ways You Can Use the Internet to Save Money

If you had told me in 1996 that I’d be using the Internet for everything from meeting friends to buying just about everything imaginable, I would have laughed pretty hard. In the world of AOL chat rooms and slow dial-up connections, it was hard to envision the potential the Internet truly represents.

The real power of the Internet is to take away the information advantage that big companies have over consumers. Back in the day, consumers were at a real disadvantage. They’d learn about a product or service, but have no way of verifying whether it was a good deal or not. These days, there are a thousand reviews of just about everything, allowing you to decide if something is worth the money.

Making you a more informed consumer isn’t the only way the Internet can save you money. Here are five more ways the Internet can help you keep more of your hard-earned cash.

1. Financial services

The internet has really changed the way we buy almost all of our financial services.

Let’s start with insurance. You can get car insurance quotes from several companies just by filling out a single questionnaire. Compare prices to get the best rate. Do this regularly, when your policy is up for renewal, and you can save hundreds of dollars a year – and it only takes a couple minutes to get your quotes.

Another example is getting a mortgage. Before the Internet, there was no way to compare rates besides physically driving around to a bunch of banks and checking the big rate board at the front. These days, getting the best mortgage rate is as easy as firing up your laptop and seeing who’s offering what this week.

It isn’t just saving money on car insurance and mortgages. You can save money on everything from car loans to investment fees just by spending a little time shopping online. It’s even possible to compare credit card offers and save money on your monthly interest rate. You don’t even have to leave the house. What a time to be alive.

2. Consumer purchases

The likes of Amazon, Ebay, and other online-only retailers have brought prices down for everyone, whether you buy online or at a traditional retailer.

You don’t even have to go to the store anymore. Everything you need to browse is just a few clicks away. Reviews tell you everything you need to know about whether or not a product is worth buying. Paying online is a snap. Just have the items delivered to your door, and you’re golden.

3. Get more done

Many businesses are using cheap overseas help to really cut down on costs. North American companies save money, cheaper labor in developing nations get good paying work, and everyone wins.

This isn’t just for big business. I’ve used overseas help to do all sorts of work I either don’t care for or don’t know how to do. I’ve saved hundreds of dollars over the years using geographic arbitrage to solve tech problems, do research, enter data, and a variety of other simple tasks. Your time is money, and you can save some of it with the help of the Internet.

4. Use your network

You can save money by leveraging your online network. Chances are, there’s someone out there who has just what you need – or wants what you have. On Facebook, I’m a member of many of the local buy and sell groups. These have rapidly replaced garage sales as the method of choice for folks getting rid of stuff. It’s a great way for you to make a little extra money without the hassle of setting up a garage sale, or you can find a great deal without having to drive all over town looking at sales.

I just let a few friends know what kind of items I’m looking for, and whenever they stumble upon something I’d like, they let me know. I’ve easily saved hundreds of dollars over the last year buying used versions of things I want. I’ve never had a problem with quality or anything like that either.

5. Travel

Remember when you had to use a travel agent to book your yearly getaway? What a pain.

These days, you can discover just about everything you’d ever want to know about a place before you book your tickets. You can look at hundreds of pictures and thousands of reviews to get an accurate representation of where you’re going.

It’s so easy to search multiple websites that saving money is a cinch. In fact, there are travel aggregators that can help you find good deals on airfare and hotels, and even build your own vacation packages at a discount. If you can coordinate your online search with the great travel rewards card that you use, you can save even more money using the Internet.

Don’t forget that you can even use the Internet to find the best travel insurance rates so that you are ready for anything if you travel abroad.

Final thoughts on using the Internet to save money

Technology is enriching our lives in many ways. You have many opportunities to save money with the help of the Internet. Before you buy something, renew your insurance policy, or book your next vacation, hop online to see what’s available to you.