Happy Monday, everyone! Here is the latest post in my Annual Expenses series. If you didn’t see the introduction post that summarizes all of my expenses, you can check it out here. I’ve been going into detail on one category each Monday. Over 2017 and 2018, I spent an average of $700 per year on household expenses. For me, this category includes supplies that get used up like paper towels and toothpaste but it also includes items I use around the house that will be around a while but aren’t expensive enough to be considered long term assets. Examples would be small tools or a coffee maker. I think I could keep this category at around $300 a year if I were really careful about it. There isn’t any huge secret to saving money in this category. Just buy quality when it makes sense, cheap stuff when it doesn’t matter, combine those two when possible, and don’t be wasteful.
When I bought that coffee maker, I bought a nice, but very affordable stainless steel setup that will likely last me a long time. Before that, I had a simple, but effective $20 Mr Coffee version that may have outlasted me if I hadn’t given it away. Do your research before you buy. With coffee makers, for example, it really doesn’t pay to spend a ton of money on a complex, fancy machine, because the longevity tends to be terrible. On the other hand, you definitely get what you pay for with pots and pans and a high quality set will work much better and last you much longer than a cheap one. Note, I said high quality, not high priced. Spending more will typically get you better quality, but there is a diminishing return effect at a certain point. A little bit of research will show you where that point is.
Buying in bulk helps a lot with consumables. I’m a huge Costco fan and it doesn’t matter one bit that I’m a one man household. Paper towels, dish soap, toothpaste, deodorant, and tons of other items aren’t going to go bad before I can use them and I probably save hundreds of dollars a year buying them in bulk at Costco. Of course, Costco isn’t just for buying in bulk and I’ve talked a lot about that on this blog previously.
What’s better than buying in bulk? How about not buying at all? A package of microfiber towels probably costs about the same as a bulk package of paper towels and can do almost all the same things. But the difference is that when the job is done, the microfiber towels can be washed and reused. I haven’t bought any more paper towels since I learned that trick since I rarely even use them anymore. And there are probably other ways that concept can be applied that I haven’t even thought of.
Finally, pay attention to what you’re doing. Little things add up over the course of a year. Soap is a great example. You don’t need to come anywhere close to filling the designated soap hole (Is there a name for that? I even googled it and couldn’t find anything) in a dishwasher all the way up for your dishes to get clean. Maybe 10-20% max is plenty. Right there, you could spend 5-10 times what is necessary on dishwasher soap and get absolutely nothing additional for it. Same goes for laundry detergent. Remember who puts the lines on the cap and how often they would like to have you coming back to buy more of their product. Healthy hair doesn’t need to be washed every day or anywhere close. Are you noticing the trend here? Figuring out the difference between necessity and convention with everything in your house can amount to a lot of money saved, particularly if more than one person lives in it.
This is kind of a boring category, but if you optimize it, you can still find ways to save hundreds of dollars per year versus if you don’t. And that is a quick description of how I keep my household expenses under control. Have a great week, ya’ll!