Everyone seems to have an opinion on how you should handle your finances, whether it’s the news, your parents, or social media influencers.
The trouble is, a lot of the information out there is just plain bad — from risky investment ideas to outdated advice that no longer works.
We came up with a list of controversial money-saving tips, along with advice that will actually help you reach your financial goals.
12 “hot take” money-saving tips
1. Cut out small expenses
Financial “gurus” love to say that your morning coffee run is ruining your budget, but that’s rarely the case. Sure, small purchases can add up over time, but avocado toast isn’t what’s keeping most people from saving.
If you’re struggling to live within your means, it’s usually because of the big stuff, like a pricey car payment or mortgage. It’s generally best to start there when you want to cut expenses.
Then, you can use a budget to make room for the little things you enjoy. Lunch Money can help by organizing your transactions so you can see which budget categories are draining your account.
2. Always buy in bulk
Buying in bulk can be a clever budgeting hack for household staples and non-perishables, such as toilet paper. However, if you’re on a tight budget, stocking up on supplies can eat a big chunk of your grocery budget.
Storage can also be an issue if you live in a small space. And unless you’re checking the per-unit price, bulk deals don’t always add up to real savings. Plus, if the products expire before you can use them, it’s just a waste of money.
3. Don’t waste your money on college
With many college graduates struggling to repay their student loans, it’s no surprise that some argue college is a waste of time and money. But that’s not always true. A degree can still open doors to careers in law, healthcare, and other high-paying fields.
The key is weighing the cost of tuition against your future earning potential. Some degrees, like nursing or engineering, have strong job markets while others may not. You should also consider more affordable alternatives, such as trade schools or certificate programs.
4. Prioritize paying off your mortgage early
You may have heard people say, “Pay off your mortgage early! It’ll feel so nice to have your home paid off.”
If your interest rate is high, like the 6%–7% we’re seeing today, extra payments towards the principal could save you thousands over time.
But if your mortgage rate is low, say 2.5%, that same money may work better in the stock market, which has averaged 10% annual returns over the long-term.
5. Try extreme couponing
Couponing is one of the frugal living tips many people tout. Extreme couponing, however, may take more time than it’s worth.
Spending hours each week chasing deals might save you a few bucks, but using that time to pick up extra hours at work or starting a side hustle would likely earn far more.
Another problem with coupons is that they can tempt you into purchases you wouldn’t have otherwise made, like grabbing a sugary coffee just because it’s BOGO.
6. Invest in real estate
While the overall real estate market has trended upward in the past, that doesn’t mean it’s always a good investment.
Rising costs for maintenance, HOA fees, insurance, and property taxes can make owning a home more expensive than renting in many major cities.
Rental properties also come with risks. If you struggle to find renters, you still have to pay the mortgage and bills. The Airbnb boom shows how fast markets can change — what looked like easy income a few years ago has now left many hosts struggling to break even.
7. Credit cards are evil
Some people believe that you should never use a credit card. While that might be true if you’re struggling with debt, when used properly, credit cards can offer some major benefits.
One of the biggest perks is earning cash or travel rewards from welcome bonuses and everyday spending. They can also offer fraud protection if your card number is stolen.
The key is always to use credit cards responsibly. Pay the full balance each month and don’t spend money you wouldn’t have typically spent just to get the rewards.
8. Don’t own a car
Cars are undeniably a money pit — between gas, maintenance, and registration fees, the costs can really add up. Some people suggest selling your car entirely and relying on public transportation, rideshares, and carpooling to save money.
However, “just sell your car” is definitely one of the most controversial money-saving tips. In the U.S. and Canada, where many cities aren’t walkable or have reliable public transportation, that’s not realistic.
For most people, trimming car expenses (like insurance and gas) makes more sense than ditching their ride altogether. Lunch Money can track your recurring payments, so you can find ways to cut back on transportation costs.
9. Always go for the cheapest option
As prices keep rising, it’s tempting to grab the cheapest option. Always going for the lowest price, though, could actually cost you more in the long run.
Cheap clothes, for example, might fall apart after a few washes. A higher-quality version may cost more but last longer — making it one of the expensive things worth every penny.
There are also ethical concerns to consider. Extremely cheap products could indicate the company is cutting corners with environmentally harmful practices or unfair labor conditions.
10. Invest in what’s trending
Social media makes financial education more accessible than ever, but it’s full of controversial money-saving tips and bad investment advice.
As a result, many people have lost money chasing crypto schemes, meme stocks, and NFTs promoted by financial influencers.
If you’re excited about a trending investment and have done your research, it’s okay to invest a small amount. Ideally, you’ll want to diversify your portfolio with a combination of high, moderate, and low-risk investments. That way, if one pick crashes, it won’t completely wipe out your savings.
11. Never take on debt
Avoiding debt is usually smart. But there are instances where borrowing money is a good idea, or even necessary.
When considering a loan, think about the return on investment. Borrowing could make sense for a mortgage that builds equity, student loans that increase your earning potential, or a business loan to start your own venture.
You should also pay attention to the interest rate. A low APR makes it easier to repay the loan and see a return on your investment.
12. Turn your hobbies into a side hustle
Many people turn to side gigs to make ends meet, especially when budgeting on a low income. While it may be tempting to turn your hobby into a business, you may want to think twice.
Hobbies are supposed to be enjoyable, but monetizing them can take the fun out of them! Even relaxing pastimes like painting or embroidering can become draining when you have to worry about marketing, accounting, and constantly producing products.
What started as a creative outlet could feel like a second job instead of a way to decompress from your regular 9–5.
Summary
While there’s no shortage of financial advice out there, not all of it is good. Be wary of “hot take” money-saving tips, like always buying the cheapest option or selling your car when you rely on it for work.
Even well-meaning advice, like cutting out coffee runs, isn’t right for everyone. With a budgeting app like Lunch Money, you can set aside money for savings and debt payoff while still enjoying the little things that make life fun.
If you want to hit your financial goals without giving up what you love, try Lunch Money’s 30-day trial today!
