Balancing savings and indulgence is a common struggle in personal finance. Both frugal and wealthy individuals aim to avoid waste, and money experts are particularly skilled at curbing unnecessary expenses. Here are their budget-friendly buys.
According to WalletHub analyst Jill Gonzalez, these experts prioritize quality over quantity, pay off credit card balances monthly, and avoid overspending beyond their means.
Money experts are savvy shoppers and know when to take advantage of sales. They often frequent discount stores like Walmart, Costco, and Target. Surprisingly, even high net worth individuals have been known to shop at these stores, according to surveys. These are just a few examples of the smart shopping strategies employed by financial experts and the people they guide.
To maximize savings, we consulted financial experts for their budget-friendly purchasing habits. Some of their choices may surprise you. Additionally, you can further increase your savings by reducing household expenses and being strategic about which bills to set on AutoPay.
1. Bedding
Affordable luxury bedding is now a reality. Rana Argenio, founder of 10 Grove, a DTC luxury bedding brand, says, “You don’t need to break the bank or travel to Florence to get top-quality Italian sheets. Many options for high-thread-count ‘luxury’ sheets are available for less than $200.
2. Cars
Conventional wisdom suggests that high net worth individuals prioritize high-end luxury cars like Mercedes, Rolls-Royce, Lamborghini, and Ferrari. However, a 2016 study by Edmunds.com revealed that the top cars among those earning over $250,000 annually are the Ford F-Series, Jeep Grand Cherokee, and Jeep Wrangler, followed by the Lexus RX and BMW X5. These findings challenge the notion that only the most expensive cars are favored by the wealthy.
3. Moisturizers
Expensive designer moisturizers are not the only option. While some high-end creams are impressive, some people prefer to avoid overspending on skincare products. Affordable alternatives, such as Aquaphor, recommended by dermatologists and endorsed by celebrities, can be just as effective at a fraction of the cost. Aquaphor, for instance, can be used for a range of skin issues and costs under $10 for 7 ounces.
4. Gas
Gas expenses can take a toll on the budget. To combat high gas prices, experts suggest using apps like GasBuddy to find the best local prices, using a credit card with high rewards on gas purchases, or paying in cash, which usually offers the best savings. Bodge says, “Gas prices are high, so it’s important to look for ways to save at the pump.
5. Wrapping Paper
Money experts suggest prioritizing a high-quality gift rather than expensive gift packaging, which will just be discarded. You can save money by using cheaper wrapping paper, ribbons, or gift bags from dollar stores, reusing salvaged gift wrap, or purchasing chic gift packaging at wholesale warehouses or on Amazon.
6. Travel
Bodge emphasizes that money experts prioritize both saving money and efficiency when it comes to travel. They know that “time is money” and will therefore avoid excessive layovers even if it means spending a bit more. These experts use popular online travel booking sites such as TripAdvisor, Expedia, and Hotels.com to find the best deals and often opt for coach class over first class to maximize their savings.
7. Jewelry
People who appreciate luxury brands like Cartier, Tiffany, and Rolex often still embrace cost-saving options when it comes to jewelry. “It’s essential to have a few premium pieces, but I also enjoy costume jewelry,” says Bodge. “You can discover distinctive and budget-friendly options at major retail stores like Target or Walmart that can add pizzazz to your outfit without breaking the bank.” Personal shopper and stylist Lauren Rae Levy affirms that even her wealthiest clients purchase inexpensive costume jewelry. “They’ll mix it in with their genuine pieces to make it appear real. At times, the costume jewelry even appears more attractive in photos than the real thing!”
8. Sunglasses
Money experts don’t necessarily splurge on high-end designer sunglasses despite being able to afford brands like Chanel, Dior, and Tom Ford. According to personal shopper and stylist Lauren Rae Levy, sunglasses are often lost or broken and buying too many expensive pairs is not practical. Instead, they opt to buy a few favorite designer pairs while also purchasing more affordable, similar-looking options to fill out their collection.
9. Mascara
According to Levy, wealthy clients tend to cut down on expensive designer mascaras due to their frequent replacement and the cost. Instead, they opt for budget-friendly drugstore options like Maybelline and CoverGirl. Levy asserts that for daily use, she can’t distinguish the difference in quality between high-end and affordable mascaras. One budget-friendly option to consider is Essence Lash Princess False Lash mascara, which is Amazon’s top-selling mascara.
10. Designer Clothes
According to Gonzalez, money experts tend to prioritize quality over brand names when it comes to everyday clothing items. They are more focused on investing in their privacy, wellness or education, rather than luxury goods or branded items. Instead, they choose clothing and accessories based on their quality to ensure they last longer and are cost-effective in the long term. Timing their purchases and owning a few key investment pieces can instantly elevate their wardrobe.
