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The past few years of rising credit card debt, unemployment, and economic hardship undoubtedly have made Americans’ wallets smart, but the experience may also have made consumers smarter. According to The New American Pantry, a study done by Deloitte and The Harrison Group, over the past couple of years consumers have reined in spending and wised-up their shopping habits.
The study, which surveyed over 2,000 consumers, shows that more than nine out of ten Americans have made changes to their shopping habits since the economic downturn that began four years ago. Not only that, but a full 81 percent actually find it fun to play the “how much can I save?” game.
Whether you’re already a fan bearer in the new, post-credit crisis Frugality Is Hip fad or simply looking for answers to stay on top of bills and wipe out that credit card debt, the study reveals some useful strategies that cash-strapped, credit card-wielding consumers are using to stay ahead in a difficult economy:
1. Delayed gratification. According to the survey, 40 percent of consumers are now waiting for a sale before buying products they need. Even 10-30 percent savings on small items can add up over the long run: just think, if your grocery bill alone saw a $20 reduction each week, that translates to $1000 in savings by the end of the year.
Tip: To keep purchases at a minimum and avoid overspending, many consumers choose to leave their credit cards at home when shopping for niceties and just carry cash. That way, there is no temptation to spend more than one intended.
2. Giving generic and private labels a try. These days, a full 75 percent of Americans are open to testing out non-brand name products ranging from to bathroom cleaners to breath mints. These private label items, often marketed under the store’s name, not only cost less than their brand name counterparts, but often contain comparable, if not the exact same ingredients.
Tip: If giving up your favorite shampoo feels like a pinch, don’t worry about it. Instead, experiment with cutting back on things you don’t care as much about, like dishwashing liquid.
3. Home-cooked meals. This change has a double benefit for most people: not only is the chicken cashew stir fry that comes out of your kitchen cheaper than the one at a fancy restaurant, it’s most likely healthier as well, since you have control over each ingredient that goes into it.
Tip: Tools like crock pots with timers can help you prepare meals in advance and cut down on cooking time after work, as can making oven-baked dishes. In addition, a variety of websites offer free fast-and-easy recipes for the time-constrained chef.
4. Loyalty programs. Airline reward credit cards offer frequent flyer miles, grocery stores offer frequent shopper programs, and warehouses like Costco procure bottom-line prices for their members. All these programs and more offer consumers the chance to get more mileage (no pun intended) out of each dollar. Research shows that 60 percent of Americans have now hopped on either the rewards credit card wagon or are enrolled in some type of frequent shopper or warehouse shopping service.
Tip: While a few loyalty programs do require a commitment or fee, many ask for no more than a valid e-mail and phone number and offer substantial savings over time. If loyalty savings are offered hassle-free, go ahead and sign up; it will only take a minute, and the benefits are far-reaching.
5. Coupons. More and more Americans are not throwing out those shiny pages of coupons that come in the mail. But snail-mail coupons aren’t necessarily the ones that carry the most allure: internet coupon services that allow consumers to download coupons directly to loyalty cards have gained traffic. In addition to saving paper, these programs save consumers hassle of keeping track of all those little clippings—and allow members to more easily search and locate the most useful product savings.
Tip: Before making a purchase online, do a quick search to see if there are any coupon codes out there that could provide free shipping or an extra 10 percent off. (To find coupons, simply Google the name of the product or vendor and add the word “coupon”)
According to the New Frugality—saving isn’t just savvy, it’s fun. A full 93 percent of those surveyed in the study report that they expect to continue spending conscientiously, even after the economy improves. For many Americans, it seems, tight times have triggered one of those primal instincts from our hunter-gatherer days of yore, transforming us back into—well, bargain hunters.
