Becoming Part Of The Thrift Market: How To Make And Save Money

  • Take second job to tackle household debt, urges AKPK – Bernama
    Take second job to tackle household debt, urges AKPK – Bernama

    The Credit Counseling and Debt Management Agency (AKPK) has urged Malaysians to take a second job to help them tackle the high rate of household debt. Chief executive officer Koid Swee Lian (pic) said those in the teaching line, for example, could give extra classes to earn more money. "Teachers could earn more money by giving tuition to... …

  • International team probing MH370 to be finalised next week, Hishammuddin says
    International team probing MH370 to be finalised next week, Hishammuddin says

    KUALA LUMPUR, April 23 — Malaysia expects to finalise by next week the list of members on the independent team of experts commissioned by Putrajaya to carry out an extensive probe on the... …

  • Kelantan yet to decide on special sitting to discuss Hudud law – Bernama

    The Kelantan government has yet to make any decision if it was necessary to convene a special state legislative assembly sitting to discuss the proposed implementation of Hudud law in the state. Menteri Besar Datuk Ahmad Yakob said the state government would think carefully if the government needed to call for such a meeting. "We will see if... …

  • Pre-lim report to ICAO not public, yet

    Malaysia has yet to decide on whether the preliminary report on the MH370 incident submitted to the International Civil Aviation Organisation (ICAO) will be made public.   "We have issued the preliminary report... to ICAO but we have not made a decision to release to media or the public," Department of Civil Aviation Chief Azharuddin Abdul Rahman said during a press conference in Kuala Lumpur.   Asked again on why it will not be released to public, although it is common practice, he reiterated: …

  • Absolute power corrupts absolutely, Dr Mahathir reminds current leaders
    Absolute power corrupts absolutely, Dr Mahathir reminds current leaders

    Malaysian leaders have been reminded not to look down on the public’s capability to topple a corrupt government as what had happened in the Middle East during the Arab spring, warned Tun Dr Mahathir Mohamad (pic). In his latest blog posting today, the country’s longest serving prime minister said that monarchs and dictators in the Middle East... …

  • Cabinet approves international probe team for MH370
    Cabinet approves international probe team for MH370

    Putrajaya today announced the formation of an international investigation team to probe the disappearance of Malaysia Airlines flight MH370, which went missing on March 8. Acting Transport Minister Datuk Seri Hishammuddin Hussein (pic) said Cabinet approved the establishment of the team at its meeting today. "The Transport Ministry has been... …

As Barack Obama battles to delay the impending budget cuts scheduled for March 1, it is clear that the U.S. economy is reaching yet another critical juncture. The president is proposing short-term measures to replace those discussed as part of the fiscal cliff deal, suggesting that the latter could be economically damaging if they are implemented in the spring.

If Congress cannot reach an agreement, the American economy may lose up to 1.4 million jobs through the existing fiscal cliff legislation. With the economy having already displayed signs of contraction and dramatically diminishing growth during the fourth financial quarter of 2012, the likelihood of a further recession appears to grow daily.

The Growth of the Thrift Market
Given that consumer credit rose at a 7% seasonally adjusted rate to $2.768 trillion last November, it is fair to surmise that U.S. citizens are not preparing themselves adequately for a prolonged period of recession and austerity. There are signs that suggest otherwise, however, as the American thrift market continues to grow at a rapid pace. According to the National Association of Resale Professionals (NARP), the thrift industry is now a multibillion dollar concern expanding at an annual rate of 7%.

With more than 25,000 resale, thrift and consignment stores now trading nationwide, it is clear that there is a rising demand for discounted used items and secondhand stock. Up to 18% of Americans plan to shop at a thrift store during any given year, which is extremely positive news in the current economic climate. It suggests that consumers are finally heeding the harsh lessons of frugality and responsible spending.

Becoming a Part of the Thrift Market
Although purchasing items at thrift stores may be a great way to save money, it requires a certain amount of forethought and attention to detail. Not all goods make for suitable secondhand purchases due to poor quality, excessive wear or issues relating to hygiene. The quest to save money while shopping should never compromise your health or quality of life, so you must think carefully before committing to a discounted purchase.

If goods such as food preparation equipment, cutlery and used makeup are all to be ignored at thrift stores, then what exactly should you be looking for? Products such as books and fashion accessories often make for excellent thrift purchases, especially if they have been well looked after by previous owners. It may even be sensible to buy discounted furniture from thrift outlets, although the pieces that you select may require modification and you must therefore account for additional time and financial costs.

Making Money from the Thrift Market
Saving money when shopping at thrift outlets is just one feature of the market. There is also the opportunity to generate cash by selling unwanted items. Flea markets, garage sales and craft shows can all be used as vehicles to sell unwanted goods. They also allow creative individuals to sell their own products. Online resources such as eBay also serve this purpose, although this market is now extremely competitive and not always conducive to a quick sale.

Once you have targeted a market and a method of selling, the next step is to ensure that you are legally set up to trade. There is a huge distinction between selling as a hobby and operating an independent business. Additionally, flea markets, garage sales and craft shows all have different regulations with regard to licensing and taxes. You may need a tax identification number and permits if you intend to sell merchandise regularly. Regulatory requirements are often the most complex part of making money through the thrift market.

The Bottom Line
The continued rise of the thrift market has created an opportunity for American consumers to both save and make money, regardless of their social standing or financial circumstances. Its prominence and increasing popularity also suggests that Americans may finally be learning their lessons in the wake of the Great Recession as they embrace the concept of frugal living and thrift buying. These behaviors may have a positive impact on the immediate future of American society, especially if President Obama is unable to prevent the onset of another recession.



More From Investopedia

Follow @YahooMalaysia on LINE for daily news updates.

Comments on Yahoo pages are subject to our link to Comments Guidelines. You are responsible for any content that you post. Yahoo is not responsible or liable in any way for comments posted by its users. Yahoo does not in any way endorse or support comments made by its users.

  • MH370 passenger’s partner tells of strange email from sacked Fox officer The Malaysian Insider
    MH370 passenger’s partner tells of strange email from sacked Fox officer

    The partner of an American passenger aboard the missing Malaysia Airlines flight MH370 has spoken about how a Fox executive who was recently sacked by the news station had contacted her offering to raise funds on her behalf. Sarah Bajc, whose partner Philip Wood is among the 239 people on board the missing plane, told the Sydney Morning Herald... …

  • Dr Ling’s son chose wine over woman, court hears The Malaysian Insider
    Dr Ling’s son chose wine over woman, court hears

    The son of former MCA president Tun Dr Ling Liong Sik today reached an out of court settlement with his ex-girlfriend in a breach of contract suit over seven properties registered under their joint names. Ling Hee Leong and businesswoman Teh Chee Yen agreed to settle out of court after he took the stand briefly and testified that he had chosen... …

  • MB: Only 29 days of water left in Selangor Malaysiakini

    Although heavy rain led to flash floods in parts of the Klang Valley yesterday, the Selangor government has said that taps will run completely dry in 29 days if rationing is not continued. "For now, we must continue with rationing as the level at the main dam, the Sungai Selangor dam, is below the critical level and can only last 29 days if rationing is not conducted," Menteri Besar Abdul Khalid Ibrahim said in a statement.   "We really hope the rakyat understands this situation and supports …