Stock up smart
tl;dr • Buying items in bulk can help one save a lot of money • Many products are non-perishable and can be stored for a long time • Subscription services can get one even higher discounts
I've mentioned before how big of a fan I am of squeezing a few percent of cash back here and there out of credit and debit card transactions so I can save more. I recognize, however, that such tools have substantially smaller potential for money saving than buying products in bulk at a lower cost per unit does – the good news is that I can always do both!
Buying a bigger package of a product that can be stocked up is often much cheaper on a per unit basis than buying a smaller one. Besides, many stores now offer even higher discounts with subscription services, which not only adds to the potential for money saving but to the convenience too.
To illustrate it, let's quickly crunch the numbers for 3 products from different categories, food, personal care and cleaning, chosen from Amazon Subscribe & Save:
Rice
4 lb, single purchase: $20.59, or $5.15 per pound.
12 lb, subscription: $48.47, or $4.04 per pound.
A family that consumes 4 lb of rice per week can go from spending $1,070.68/year to $840.15/year, saving $230.53/year.
Toothpaste
4 oz, single purchase: $6.37, or $1.59 per ounce.
12 oz, subscription: $13.57, or $1.13 per ounce.
A family that consumes 1 oz of toothpaste per week, can go from spending $82.81/year to $58.80/year, saving $24.01/year.
Laundry detergent
64 loads, single purchase: $12.97, or $0.20 per load.
96 loads, subscription: $16.35 => $0.17 per load.
A family that runs 1 load per day, can go from $73.97/year to $62.16/year, saving $11.81/year.
For these 3 products alone the estimated annual savings add up to $266.35, or outstanding 22%!
It’s important to emphasize that this is just a very rough estimate, as preferred products, brands and usage will vary across households. It can also be argued that this estimate ignores the potential opportunity cost of spending more in advance when buying in bulk.
With that said, the point being made here is hard to dispute: there's a huge potential for money saving – thus effectively lowering one's cost of living – by simply doing a little bit of planning, buying products in bigger packages, and using subscription services.
Make sure to always compare prices between different stores, and research multiple brands and product types before choosing what works best for you. It's not uncommon for one to find substantially cheaper, generic versions of name brand products that are just as good, which can also add to the amount of savings.
Additionally, it’s a good idea to review your stock up list and subscriptions every year or every few months, as prices may change and new brands or variants can come up, meaning more opportunities to save.
Apart from Amazon, Costco and Boxed are stores that I often shop at for stocking up.
Other items to consider
Here are a few inspirational ideas of items that can be stocked up:
Non-perishable food items: cereal, coconut water, crackers, grains, peanut butter, sparkling water, spices, teas.
Cleaning products: bathroom cleaner, dishwasher soap, laundry detergent, multi-purpose cleaner, paper towels.
Personal care products: razor blades, shampoo, toilet paper, toothpaste, soap.
Pet supplies: cat litter, pet food.
Bottom line
By combining buying in bulk with subscription services, one can effectively and substantially lower his or her cost of living. Plan it, stock it up, and invest what you save for a wealthier future!
Disclaimer
I may receive compensation when you click on links that I share.
This is not financial advice. I am not a certified financial planner or advisor, just an ordinary guy trying to sort out his own finances, sharing his perspective with no guarantees. Use the information provided at your own discretion. You are highly encouraged to do your own research before making any personal finance decision.