Does buying in bulk save money

For example, if you buy one tube of toothpaste, you could pay $2. However, a box of 20 tubes could cost $30. If you divide the price tag for the box by the number of tubes, you will see that each tube costs $1.50. So, in the long run, you will save $0.50 per tube compared to the single $2 tube.

The drawback to this is that you will have to pay more money upfront ($30 instead of $2 if we use the toothpaste example again). However, you will not have to buy toothpaste for a long, long time, and over the next year or two, you will have saved a total of $10 on toothpaste overall.

There are some important rules for buying in bulk. Not every item is ideal for these strategies.

• You should have room to store the bulk items. If you live in a smaller place, perhaps you will not have a place to put a lot of cans or boxes. You don’t want bulk buying to disrupt your living situation.
• You should be certain that you will use all of the item. Necessities like tissue paper, razors, batteries, toothpaste and soap are good for bulk buying because you will be sure to use them.
• The items should be non-perishable. Soap does not have an expiration date. Some foods could also work for this strategy, provided you are certain you will use them all. Canned, dried or frozen foods can be bought in bulk. Fresh foods are not ideal because they could spoil before you get a chance to eat them all.

What are some examples of items that you can buy in bulk?

• For items that will never get old, such as toothbrushes, toilet paper, soap, and similar things, you can buy as much as you can conveniently store in your living space.
• The same could be said for canned foods and frozen foods. Your limit is the amount that you can fit in your cupboards or freezer. Keep in mind, however, that canned and frozen foods will keep for a long time, but they do have expiration dates, so do not buy more than you can consume in a year or so.
• Sometimes, you can save money by buying larger sizes of the things you use regularly. To figure the savings in these situations, you have to find the price per unit. For coffee, you would divide the number of grams by the price to find out how much the coffee costs per gram. You could then see if a larger size has a lower price per gram.

What should I do with my savings?

Ideally, you would use the extra money you saved by buying in bulk to set up a savings account. This can be tricky because unexpected expenses can eat into this savings quickly. Instead of dipping into your bulk-buying savings, you can get an online personal loan to cover the unexpected expense. You can then use future earnings from your job to pay back the loan without touching your savings account.