Step Down to Save Money

Recent stock market volatility and recession jitters have me thinking of a similar environment five years ago at the start of COVID-19. What I wrote then is as important today: “While we can’t control prices, we can control (somewhat) what we spend.” Not everyone is able, or will feel emotionally inclined, to “buy the dips” in stock prices, but everyone can review and tweak their spending habits.

In this tough economy with rising prices for many household expenses and stock market carnage, many people are looking for “deals.” People at all income levels are seeking ways to lower expenses so they can claw back against inflation, save money, and/or repay debt. Consider these strategies:

Consider Stepping Down- Like smoking cessation patches where nicotine is reduced gradually, “stepping down” reduces household spending in gradual stages instead of eliminating an expense completely. To visualize stepping down, imagine a staircase. On the top step is the most expensive way to buy an item and on the floor below the bottom step is the least expensive purchasing method. 

Put It Into Practice- Here’s an example of buying pancakes for breakfast. The most expensive method (top step of the staircase) would be going to a “sit-down” restaurant. The next step down would be to buy pancakes at a fast food outlet. Go down two steps  and you can buy frozen pancakes at a supermarket and, three steps down, pancakes prepared with a mix. At the “floor” of the staircase would be the cheapest method still: pancakes prepared “from scratch” (i.e., dry ingredients).

Keep On Going- “Stepping down” can also refer to the frequency or amount of a purchase as well as where it is made. For example, you may decide to eat out two or three times a month instead of five or six. You’re not completely eliminating what is obviously a pleasurable activity. You’re simply taking steps to reduce the cost. Or you might “step down” by eliminating an appetizer, drink and/or dessert when you eat out. Again, you’re still enjoying a restaurant meal, but doing so for less money.

Step Down Shopping Venues- “Stepping down” works best with “discretionary” expenses that are not locked in. Examples include clothing, shoes, gifts, home furnishings, toys, housewares, and travel. Steps of spending, from top to bottom, might include shopping high-end retailers, mid-level price department stores, discount stores, factory outlets, consignment stores, and thrift shops, flea markets, and garage sales. Again, the more steps someone goes down, the greater the likely savings. 

Be a Thrifty Shopper- Many thrift stores are operated by non-profit organization fund-raisers and are a win-win-win-win: donors get rid of items they no longer need, shoppers get great bargains, a non-profit agency gets needed cash, and less stuff ends up in landfills. Some thrift shops have “dollar racks” and end-of-season bag sales. I volunteer at a thrift shop and am constantly amazed at the wonderful items (all donated) that are available for sale at a fraction of their original price. I also went on a thrift shop trail recently with friends and bought home a haul of nine items that cost $22.

Now is a tough time to be a consumer with the impacts of tariffs and inflation. The next time you want to buy something, consider “stepping down” and visiting a local thrift or consignment store. 

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.