Are you trying to save but feel you can never get ahead? Take a close look at your spending habits and you may find many ways to save. Specifically, let’s look at what you can stop buying to help save money faster.
Here are the main areas that can really make an impact on your budget. Which of these can you apply in your life?
1. Cars on finance
You need to get around. But how you do it will make a huge difference to your budget.
A car is a depreciating asset. That means that it loses value with time.
So any normal car is going to start losing value as soon as you drive it off the showroom forecourt. That means that not only you paying a lot for something that’s losing value, you’re also paying for the finance charge to buy it in the first place. So over the course of your ownership, you’re going to pay a lot more than if you bought the car outright.
Now new cars are expensive so obviously, you’d need to have a lot of cash saved to buy one outright. However, you can get a very reliable car just a few years old for a fraction of the cost that a new one would cost.
How about ditching the car altogether?
If you live in a city centre with good public transport you might be able to get rid of the car altogether. Get fitter, help the environment and save a heap of money too by walking, cycling, taking public transport or getting an Uber when you need to get around.
2. Housing
Housing is usually the biggest expense that anybody needs to pay out for so it’s really worth taking a look at to see what savings you can make.
You need to live somewhere, so this cost won’t go away, but you may be able to make huge savings by looking at ways to reduce your housing expenses.
Something you might consider is to move to a cheaper area. The neighbourhood you are in makes a huge difference in the price of property.
Another option is to downsize and move into a smaller place that will cost you less. Or go for a bigger place but share with a friend or family member to save on housing costs.
If moving isn’t an option perhaps you could take in a lodger or do holiday lets to help offset what you’re paying for housing.
Look too at the cost of rent versus homeownership. In most areas, monthly mortgage payments will be a lot lower than the cost of renting. If you can get on the property ladder you could not only lower your expenses but also benefit from the growth in value of your home over time.
For more ideas check out Your Home Could Pay for Itself and Pay an Income Too!
3. Furniture on store credit
Any furniture that you buy new on store credit is going to be costing you more than you actually need to pay for it.
The finance company is going to factor in the cost of credit into the price that they charge you, so one way or another buying furniture on credit is going to cost you more more
Even better, stop buying new furniture. Just like cars, furniture depreciates. New furniture loses value as soon as it leaves the shop.
If you were to try to resell the couch a week or two after buying it, it would be worth a fraction of what you paid for it. Save yourself a bundle by looking for items on sale.
Better still, online marketplaces have loads of excellent quality nearly new furniture for a fraction of what you’d pay in-store.
4. Anything on a credit card
When it comes to credit cards, the biggest pitfall is the interest rate. The only time you should ever use a credit card is if you have the card set up for automatic payment in full every month.
You still need to have the cash in your account to pay for that item outright. Only use a credit card if you know you are disciplined enough to check your budget and make sure the balance can be paid in full.
Many credit cards offer benefits like points, vouchers or air miles so if you can save up points for something you would buy anyway, a credit card could save you money.
I was able to pay for all my food for the month of December with points I’d saved by doing my grocery shopping on my credit card.
However beware, because as soon as you start to carry a balance on a credit card you’re going to end up paying way more for your purchases. Carrying a balance is the fastest way to really sink yourself and struggle with debt.
So unless you have the cash to pay outright never, never, never use a credit card
5. Meals out
Dave Ramsey says that the only time you should ever see the inside of a restaurant is if you work there. Well, that might be a bit drastic. However, if you’re really trying to save money then it absolutely holds true.
Why? Because you’re going to be paying not only for the food that you’re eating but also for the venue, the staff wages and service charges.
So you’re going to end up paying a lot more for your meal than if you want to eat at home.
6. Drinks out
This goes double for drinks out.
If you are going out to eat out in a restaurant and then the trick is to stop buying alcohol or soft drinks. Drinks are the restaurant item with the biggest markup.
So if you are eating out and just ask for table water with your meal and you’ll save yourself a heap off your the bill right there.
7. Food delivery
Similarly, for food delivery, you are also paying a lot extra on top of the cost of your food. You’re paying the restaurant to cook your food, you’re paying for the cost of the kitchen, the overheads, the staff and the delivery charge.
As you’re going to be eating the food at home anyway really consider if it’s worth paying for delivery service if you’re wanting to save money.
8. Processed food
While we’re on the subject of food, processed food and any meals with pre-packaged ingredients are going to cost way more than if you were to buy the ingredients and cook yourself.
Once you get into the habit of cooking you’ll find that processed foods don’t really save you that much time either. So do your health, the environment and your wallet a big favour and cook from scratch rather than buying processed food.
9. Car rental
When you’re going on holiday you need to be aware of hidden expenses. The flights and accommodation might seem affordable but then when you start to add in the extras it can really add up.
Car rental is one of the biggest extras. There can be additional fees for insurance, additional drivers, child seats, a sat nav etc. Plus the annoying waste of time waiting at the car rental desk before you can begin your holiday.
In most cities, there are local buses and taxis you can take. You can really get a feel for a place by taking local transport. Embrace life like a local and save in the process.
10. Extra luggage
Another item that can quickly increase the cost of your holiday is the luggage. Many airlines will quote you a fare without luggage. Once you start to add on suitcases you may find yourself paying double the advertised fare.
So consider what you can do to travel light. Perhaps just pack hand luggage and you’ll save money as well as saving time at the baggage collection. You’ll also reduce the risk of your luggage being lost. Without lots of luggage you could eliminate the need for a rental car too.
11. Extended warranties
Most stores offer extended warranties now on anything that you buy, especially home appliances or electronics. Really consider whether it’s worth buying the warranty or not. In many cases the warranty is just another unnecessary expense.
Particularly with something inexpensive like a toaster or electric kettle, the warranty is a waste of money. You are likely to find it’s more cost-effective to take a chance on the item breaking rather than paying the extra for a warranty.
Essential items that are costly or hard to replace could be the exception to this rule. Items in this category can include heating boilers, fridge freezers and cookers.
In the case of these essential, big-ticket items check who provides the warranty and what their terms are. The warranty is only useful if they will actually repair or replace the item in a timely manner.
12. New computer equipment
It can be super tempting to get the latest and greatest technology as soon as something new comes out.
But you’ll often find that you can get to a refurbished version that’s a year or two old and pay a lot less.
You’ll still get up-to-date features and well-performing product. For example, you can go to an authorised reseller and if you’re looking for an Apple product. Apple sell their own refurbished or ex-display stock.
There are also authorised resellers who will also be selling high-quality items, again for a lot less then you would pay if you’re by buying it from the store brand-new. An authorised reseller will cover the item with a warranty too.
13. New sports equipment
Sports equipment is another category that loses value very fast.
So stop buying new sports equipment, particularly if it’s something seasonal that you’re not going to use all the time.
For example, if you’re going skiing you can pick up skis boots and poles that are still in very good condition for a lot less than new.
Another example is a bicycle. Again a bicycle doesn’t need to be brand-new to work well. Bike technology hasn’t changed so much that you would need the up-to-date this year‘s model.
So by getting one that’s a year or two old you can still get an item that works very well for a fraction of the cost of buying new.
14. New baby equipment, toys and games
I know when it’s what it’s like and have a brand-new baby and want the best. You want everything that’s new and lovely and clean.
But baby equipment, particularly things like prams and buggies cost a lot new and loose value fast.
A small child’s needs change so quickly. You may buy the perfect thing brand-new for a newborn but within three months your child’s needs will have changed and that’s not going to be the right item anymore.
You save a lot by buying secondhand. Then as your child grows you can upgrade and change to something more suitable for the next stage. Bonus if you sell on the previous item for the price you paid, or even at a profit!
15. Non-stick cookware
Stop buying non-stick cookware and you will both save money and protect your health.
You’re much better off buying something like uncoated stainless steel or cast iron. Yes you’re going to have to pay a little more attention to how are use it, but these items that can be that can last you a lifetime.
With really with good care they could even be passed on to the next generation. So there’s no point at all buying nonstick cookware that’s bad for your health and is going to get scratched and become damaged and need replacing very soon.
16. Cheap toys/clothes
Another category I’d suggest avoiding is cheap things. Now this seems counterintuitive if you’re trying to save money. But actually, by buying cheap you’re usually buying something that’s really rubbish quality and may fall apart need throwing out and replacing quite quickly.
This is a disaster both for the environment and for your wallet. If you just take a look around and look at all the items going to landfill or look at plastic pollution you can see the effect of cheap plastic items.
All of that rubbish was once money.
So it’s better to buy something that’s better quality and is going to last a long time than constantly buying and replacing cheap stuff.
17. One-off tickets to attractions
If you’re going to an attraction like a theme park or museum, look at ticket prices ahead of time. Look also at the cost of season tickets or memberships.
A lot of museums and theme parks now offer annual passes at prices that are not a lot higher than a single admission.
So you may choose which ones you go to in a given year and focus on going several times.
By getting the annual membership and going to the same place several times you’re really getting your money‘s worth. you’ll get to enjoy the attraction and pay a lot less then if you were going to buy many single visit tickets to different places.
Look for venues too that have national memberships. For example, in the UK you can become a member of the National Trust. Then you are covered for admission to all the different National Trust properties, so no matter where you are in the UK your membership will cover the admission.
Visiting a Royal Horticultural Society venue like Wisley may seem expensive for one single admission. However, if you’re going to use it many times or at different locations it can really save you a lot in the long run.
Wisley admission costs £44.70 for 2 adults and 2 children. However, you can get an annual membership for £71.25. So by visiting just twice in a year you’ll save over the individual ticket price.
18. Children’s parties
We love our children and we want the best for them but it’s really worth considering what your child needs as opposed to what are your friends and family may be expecting.
Especially for very young children a large party could be stressful and overwhelming.
Your child might be better off with a small party for just a couple of friends at home or in the garden. You can do a lot without having to pay for the cost of a children’s entertainer or venue or tickets to some kind of a theme park
19. Cheap furniture
I have a really hard time shopping for furniture because as a former designer I pay a lot of attention to how things are made and what they’re made of.
A lot of things look great in the catalogue. They are nicely designed they look good in the photo, but when it comes down to it your find that it’s a very cheap construction that can get rickety and fall apart very quickly.
So cheap furniture, and especially cheap new furniture, can be a total waste of money because it just won’t survive being moved from place to place or having doors opened and closed. So you’re completely wasting your money by buying cheap new furniture.
You could be a lot better off if you spend a bit more on a solid wood piece of furniture that is well made.
A really a good quality piece of furniture should last hundreds of years not the five or 10 most things are designed for nowadays.
Of course the other option to save on furniture is to buy vintage or antique because you’re much light more likely to get a good quality solid piece then if you go to a store and buy a flat pack or a laminate.
20. Kitchens
Exactly the same applies to kitchens.
Even higher-end kitchens from the major retailers are mostly the same kind of construction as the cheap ones: They’re made from particleboard with a layer of laminate on top. That means any screws can work loose and if the drawers, cabinets or doors get wet then they can easily warp and swell.
So what to do if you want long-lasting kitchen? Well, again it may be worth spending more up-front to have something custom-built in solid wood or plywood.
If you are on a tight budget look at ex-display kitchens, and kitchens being taken out when refurbishing. Consider also having new doors put on your existing kitchen. With a new counter and backsplash, you can have a whole new look without having to shell out for a whole new kitchen.
21. More Stuff
The best way to save is to simply stop buying more things. We now have more possessions than at any time in history. Apparently, the average American household now contains more than 300,000 possessions.
Here Joshua Becker sums up 21 Surprising Statistics That Reveal How Much we Actually Own.
And in case anyone outside the US is feeling smug, the rest of us are heading that way too.
So the simplest way to save money is just to stop spending it. Make the most of what you already have. You’ll save money and you’ll have less clutter to deal with.
Are there any items on this list that you have already stopped buying? What about any I’ve missed? Let me know in the comments.
And if you’ve found this post useful, please remember to share 🙂
