Building up a solid savings fund doesn’t always require that you make life-altering sacrifices to get there. Small changes to your daily routine can add up to meaningful savings over time.
The key is finding areas of your budget where you can cut back strategically without depriving yourself entirely. Here are some small trade-offs that could help you spend less and save more.
5 easy trade-offs to save money
The following are some practical trade-offs that can help you cut costs while still enjoying the things that matter most to you.
1. Switch banks
Banks are for-profit businesses, so it’s common to come across a host of bank fees — including monthly maintenance fees, ATM fees, overdraft fees, and more. These fees eat into your balance and reduce your interest earnings.
But that doesn’t mean you’re stuck paying a host of fees each month. If you shop around, you’ll find a number of financial institutions that charge few, if any, fees — especially online banks and credit unions.
Read more: How to switch banks: An easy step-by-step guide
2. Buy generic whenever possible
You might choose name-brand products when shopping for groceries, household supplies, medications, or personal care items because you believe their quality is better. But the truth is that in many cases, the quality and ingredients among generic or store-brand products are very similar to their name-brand counterparts — and sometimes even produced by the same manufacturers.
Generic products are often significantly cheaper than name-brand products because retailers spend less on advertising, packaging, and marketing. So, opting for generic versions of the product you buy regularly can lead to noticeable savings over time.
3. Swap disposable products for reusable ones
What’s good for the planet can be great for your wallet. Products such as plastic water bottles, cleaning wipes, paper napkins, menstrual products, and plastic produce bags — to name a few — are single-use items that become recurring expenses and eat into your monthly budget.
However, there are reusable alternatives to many single-use items that reduce waste and limit the number of repeat purchases you need to make. Think: washable cleaning cloths, reusable water bottles, and refillable coffee filters or food storage containers. These products may cost more up front, but can significantly lower long-term household expenses.
Read more: 5 psychological money hacks to cut spending and increase savings
4. Borrow clothes for special events
The next time you have a special dinner or wedding to attend, resist the urge to buy a new outfit. There are several platforms that allow you to rent clothes for special occasions and avoid spending $100 or more for something you may never wear again.
For example, Rent the Runway or Nuuly can give you access to designer brands at a fraction of the cost. Sure, you won’t get to keep those outfits in your closet forever, but it’s an easy way to keep your costs low while dressing up and perhaps even exploring new styles without the financial commitment.
5. Pick up takeout instead of getting it delivered
Food delivery apps like DoorDash and Uber Eats make it incredibly easy to have just about any food you want delivered to your doorstep. The problem: between food markups, service fees, delivery fees, and tips for drivers, using these services can add an additional 40% to 90% to the cost of your meal.
If you’re feeling a little lazy and don’t want to cook, you can still enjoy takeout. But skip the delivery and phone in your order for pickup instead.
Read more: 6 Gen Z savings strategies that can work for anyone