We’ve all heard the standard money-saving advice: make a budget, skip the daily latte, and pack your lunch instead of buying. But what if you’re already doing those things and want to take your savings to the next level? These money-saving habits may seem a little crazy initially, but they can lead to significant savings over time.
These surprising money hacks aren’t for everyone, but for those willing to think outside the box, they can add up to big bucks. As you’ll see from the examples below, implementing even just one or two tips can lead to hundreds or thousands in savings each year.
1. Pay for Everything in Cash
It can be incredibly eye-opening to see where your money goes each month. An easy (if old-fashioned) way to do this is to withdraw a set amount of cash for your discretionary spending and use that instead of credit or debit cards. Once the money runs out, you’re done spending for the month!
This habit helps curb overspending in a few ways. First, it’s a very tangible way to track where your money is going vs. the abstractness of digital transactions. Second, using cash makes you think twice about each purchase, cutting down on impulse buys. Finally, it helps you stick to a firm budget since you can’t exceed the amount you’ve allocated in cash. Many people who switch to cash are shocked by how much longer they make their money last.
2. Buy Generic or Store Brand Products
When you compare the ingredients in brand and generic products, they are often nearly identical. But the generic or store-brand version sometimes costs 25-50% less! Frugal folks know that most of the higher price of brand names goes to the company’s marketing budget, not higher-quality ingredients.
An easy way to start saving with generics is on household staples like medications, pantry basics, paper products, and cleaning supplies. Look at the active ingredients to ensure you’re getting an equivalent product. You can also do blind taste tests to find the generic brands you like best for things like snacks, cereal, soda, etc. The annual savings between brand loyalists and generic devotees can quickly add up to hundreds or thousands of dollars.
3. Shop Secondhand for Clothes and Housewares
Too many people think that being frugal means never buying nice things. But savvy savers know you can often find high-quality, brand-name items for a fraction of the retail price by shopping secondhand! Checking thrift stores, consignment shops, estate sales, and online resellers can yield amazing deals.
The keys to successful secondhand shopping are to look for well-made, timeless pieces and carefully inspect items for damage before purchasing. Well-cared-for garments, furniture, decor, and more can look nearly new but cost 50-90% less than retail. Reusing existing items is a more sustainable habit that keeps things out of landfills. It’s a win-win for your wallet and the planet!
4. Cancel Unnecessary Subscriptions and Memberships
Recurring monthly charges for subscriptions and memberships you’re not using are like a slow leak in your budget. $10 here and $20 there may not seem like much, but they can add up over time, especially if you have many of them on autopay and forget they’re even there.
Take an afternoon to review all your sources of monthly recurring charges—credit card statements are a great place to look. Make a list of any subscriptions or memberships you’re currently paying for. Then, evaluate how often you actually use each one and cancel any that aren’t regularly used or that you can reasonably live without. Those “set it and forget it” payments can quickly add up to hundreds in unnecessary spending each year.
5. Implement a 30-day Waiting Period for Big Purchases
How many times have you felt a burning desire to buy something but later realized you didn’t need it or even really want it that much? Impulse purchases, even well-considered ones, are often a significant source of money mistakes. Luckily, you can use a simple trick to outsmart your spending urges.
Any time you desire to make a big purchase (you can define “big” based on your current means), make yourself wait 30 full days before completing the purchase. Write down what you want to buy and the date. When 30 days are up, if you still really want the item, allow yourself to buy it. Many people find that the urge has passed, and they’ve forgotten about it! If you still want to buy after 30 days, use the waiting period to thoroughly research your options, read reviews, and find the best possible deal. This pause can save you serious bucks on unneeded purchases.
Case Study: How Kristi Saved $5,000 a Year With Unconventional Money Hacks
Kristi considered herself pretty budget-savvy but was frustrated that she couldn’t save as much as she wanted each month. She was already following common frugal tips like packing her lunch, brewing coffee at home, and waiting for sales to shop.
Then, a frugal friend suggested a cash-only spending challenge. Kristi was skeptical at first, thinking it sounded way too old school. But she figured it couldn’t hurt to try for a month. She also read about the potential savings of buying generic household products and waiting 30 days before making big purchases.
After 6 months of putting these tips into action, Kristi was blown away by how much she had saved. The cash envelope system had cut her discretionary spending by 40% without her feeling deprived. She found that she preferred many generic brands she had switched to and was saving over $200 a month on groceries and toiletries alone. The 30-day wait rule had helped her avoid several big impulse purchases, saving her account balance and buyer’s remorse. All these crazy-seeming money tips helped her save nearly $5,000 a year!
Key Takeaways
- Withdrawing cash for discretionary spending helps you stay aware of your money and stick to a budget.
- Generic products are often just as good as brand names but can cost 25-50% less.
- Buying secondhand is a great way to get high-quality items at a fraction of the retail price.
- Canceling unused subscriptions and memberships can save you hundreds each year.
- Implementing a 30-day waiting period before big purchases distinguishes wants from needs.
- Impulse purchases are a common source of money mistakes.
- Writing down an intended purchase and revisiting it in 30 days gives you time to thoroughly research options.
- The urge to buy something often passes after a 30-day waiting period.
- These unconventional money-saving habits can add up to thousands in savings per year.
- Trying just one or two of these crazy tips can make a big difference in your ability to save.
Conclusion
The road to financial health isn’t always paved with bland, conventional wisdom. Sometimes, you must be willing to try things that seem a little “out there” at first glance. However, as these five surprising money-saving habits show, unconventional methods can lead to immense savings.
Living frugally doesn’t have to mean depriving yourself. It’s about making intelligent, conscious choices about where you spend your hard-earned dollars. By implementing these five creative money hacks, you can watch your savings grow substantially over time without radically overhauling your lifestyle. Even by starting with one or two of these tips, you can save significantly more money. So don’t be afraid to get crazy – your bank account will thank you!