6 Money-Saving Tips: Easy to Implement, Yet Often Overlooked

We all know the basic principles of saving money, but there are some lesser-known strategies that can make a significant difference.

Discover these highly effective money-saving strategies that are easy to implement. Unveil hidden gems of financial wisdom, from understanding the illusion of sales to the power of homemade meals, the importance of understanding recurring billing services, and more.

Learn how these simple changes can lead to significant savings over time.

1: The Illusion of Sales

Just because an item is on sale doesn’t necessarily mean you’re saving money. For instance, if a product originally priced at $100 is on sale for $70, you’re not saving $30; you’re spending $70. It’s essential to remember this when considering sale items.

Sales are a common marketing strategy used to entice customers into making purchases. However, it’s crucial to understand that a sale doesn’t necessarily equate to saving money. This is a psychological trick often used in retail to make customers feel like they’re getting a great deal when in reality, they’re still spending money. It’s important to only buy items that you need and would purchase even without the sale.

Otherwise, you’re not saving money, you’re just spending less.

2: The Power of Homemade

Consider the potential savings every time you think about buying a coffee or lunch instead of bringing food from home. If you successfully talk yourself out of the purchase, transfer the money you would have spent to your savings account. This simple habit can help you save an extra $20-30 a week.

Preparing your meals at home is a great way to save money and eat healthier. For instance, instead of buying a coffee or lunch every day, consider making these at home and bringing them with you. This can lead to significant savings over time.

According to an article on Eat This, Not That ¹, there are numerous cheap and healthy meals you can prepare at home, such as a high-protein fruit, granola, and yogurt breakfast, or a veggie scramble with gouda for lunch. By preparing your meals at home, you can control the ingredients and portion sizes, leading to a healthier and more budget-friendly diet.

3: Recurring Billing Services

Surprise credit card charges from subscriptions are becoming increasingly common, with a Bankrate survey ¹ revealing that 51% of U.S. adults who’ve had a subscription or membership account have faced unwanted charges.

These unexpected fees often arise from inadvertently joining a service, neglecting to cancel a free trial, or unknowingly having an annual membership auto-renew. The issue is particularly prevalent among younger generations, with 58% of Millennials and 57% of Gen Zers reporting unwanted recurring charges.

The pandemic has also amplified the problem, with 45% of those surveyed experiencing unwanted charges since March 2020.

To combat these stealthy charges, consumers are advised to meticulously track their subscriptions, be wary of free trial traps, disable auto-renewals, and utilize tools provided by credit card issuers to manage subscriptions. If an unwanted charge does appear, it’s recommended to first approach the service provider for a refund. If that fails, turning to the credit card company for assistance might be the next best step.

As subscription services continue to surge in popularity, being proactive in managing them is crucial to avoid financial pitfalls.

4: Understanding Unit Pricing

Learn how unit pricing works and make purchases based on that. Unit pricing is a method of pricing goods to show the cost per standard unit of measure, such as per ounce or per pound. This can be a useful tool for comparing prices and finding the best value. For example, a larger package may seem more expensive, but when you look at the unit price, it may actually be cheaper per ounce.

However, it’s also important to consider how much of the product you will actually use. If a product goes bad before you can use all of it, the lower unit price may not be worth it.

5: The 24-Hour Rule

The 24-hour rule is a simple and effective strategy to curb impulsive spending. The idea is to wait 24 hours before making any discretionary purchase above a certain threshold. This gives you time to consider whether the purchase is necessary and if it fits within your budget.

The item will likely still be available to purchase after the initial ‘gotta have it’ spending impulse has passed. This rule can be particularly helpful for online shopping, where the ease of clicking ‘buy now’ can lead to unnecessary spending.

6: Transferring Savings

Transferring savings is a simple yet effective strategy to accumulate wealth over time. Whenever you resist a frivolous purchase, such as not buying a coffee or choosing a cheaper option on the menu, transfer the amount you would have spent into your savings account. This practice can quickly add up and help you get into the habit of saving. Automating this process can make it even easier.

For instance, you can set up automatic transfers from your checking account to your savings account each month. There are also apps like Digit or Qapital that can do this for you, transferring small amounts from your checking account to a separate savings account.

Saving money doesn’t have to be a daunting task. By understanding the illusion of sales, harnessing the power of homemade meals, being mindful of recurring billing services, understanding unit pricing, implementing the 24-hour rule, cooking over buying, and transferring savings, you can make significant strides toward financial stability.

These simple yet effective strategies can help you accumulate wealth over time without drastically altering your lifestyle. Every little bit counts when it comes to saving money, and these small changes can lead to big savings over time.

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Sources

1. bankrate.com/finance/credit-cards/subscription-service-charges-survey/

Inspired by this thread: Reddit