6 Bulk Purchases That Can Backfire on a Low Income
Buying in bulk is often treated as an ultimate money-saving hack, especially with more than a few warehouse stores around. But for low-income households, bulk buying doesn’t always bring the same benefits. In some cases, it can actually make your financial situation tighter.
Here are six bulk purchases that can backfire on a low income.
Also See: 6 Costco Deals That Make Your Everyday Life Feel Slightly More Luxurious
Read More: 5 Signs You’re Losing Money Every Month — and How To Find the Leaks
1. Bulk Perishable Groceries That Expire Before You Use Them
Most people shop with the best intentions to eat everything they buy. Unfortunately, buying large quantities of fresh or perishable food can backfire if you don’t use everything before it expires. And if you think this won’t be you, keep in mind that the USDA estimates that up to 40% of the food supply is wasted each year.
This is especially risky for smaller households or people who aren’t home on a regular basis to make and eat their groceries.
2. Oversized Pantry Staples That Tie Up Your Cash
Stocking up on bulk pantry staples like rice, pasta or canned goods can seem like a wise move at the time, but it also means forking out more money up front. Spending $40 to $60 at once instead of $5 to $10 weekly can strain a tight budget.
For low-income earners, having liquid cash can be essential for bills, gas or emergencies.
3. Household Products You Don’t Use Quickly
Bulk cleaning supplies, paper goods and toiletries may seem like a good buy at the time, but they only save money if you use them consistently. Otherwise, they can sit in storage at the expense of other financial needs.
If you live with roommates, you might inadvertently be financing their household products as well, simply by having more around.
4. Bulk Snack Foods That Lead to Overspending
Of all the bulk food items to buy, snacks are likely the least nutritious and filling. So you may end up spending more of your food budget on items that are less healthy and not as cost effective as actual groceries.
5. Bulk Clothing and 'Value Packs' That Don’t Fit Your Needs
Multi-packs of clothing, socks or basics can seem like great deals, but they often include items you don’t need. This can lead to wasted spending on things that don’t add real value.
When money is tight, it may be best to buy only what you need, even at a higher per-unit cost.
6. Bulk Purchases That Require Storage You Don’t Have
Limited storage space can make it impractical to store your purchases, and lead to clutter. Worse, food and other perishables stored improperly is more likely to spoil or go unused.
For renters or those living in smaller spaces, bulk buying may not be practical.
What To Do Instead: Smarter Alternatives to Bulk Buying
Instead of defaulting to bulk, buy only what you’ll use at the lowest prices you can find. Seek out sales and coupons and be realistic about your purchases.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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