Get Unbranded

Food is often the third biggest budget expense after your house and car. It’s difficult to cut the monthly cost of your home and car when the loan and insurance payments are fixed. Luckily you can exert some control over other spending areas, especially with your food costs.

A recent article on Wallet Pop entitled “10 Products to Always Buy Generic” written by Aaron Crowe highlights products that you should always buy generic.

1. Cereal. Cereals are expensive. Generic cereal will look the same and be similar in taste but cost 25-50% less. The packaging and marketing expenses are what drive up the price for name brands.

2. Basic Cooking Ingredients. Flour, sugar, spices, etc. are under the same government guidelines as brand name staples so it doesn’t make sense to pay more for a brand name.

3. Soda. Generic brands of soda can be much cheaper than the brand names. The difference in taste may be minimal or great so do a taste test before buying a couple of cases.

4. Salad Mix and Produce. The quality of a head of lettuce or an apple can be determined by your senses; buying a name brand won’t give you added value. The cheapest way to buy produce is to pick the fruits and vegetables that are in season and create menus that make good use of them. Some fruits and veggies can be cooked and frozen to be used later.

5. Baby Formula. According to Aaron Crowe’s article, baby formula whether it’s brand or generic has to be made according to government regulated procedures set by the Infant Formula Act. There may be some taste and texture differences but if the FDA approves both a generic and a name brand, both will be healthy for the baby but the generic may be significantly cheaper.

Another expense area that can become a huge money-sucking hole in your budget is the miscellaneous category. As we all know, things happen and unexpected expenses can pop up like car repairs, minor household maintenance and appliance needs, toiletries, medical expenses, clothing, dental treatments, and the list goes on and on. Below are just a few items where you can save if you buy generic.

6.Over-the-counter medications. Because the FDA requires generic drug makers to use the same ingredients as the name brands, the quality of the generic and brand name medications is the same but their prices can be vastly different. However, with prescription drugs the quality and ingredients may not be the same, so check with your doctor to determine if a name brand drug has a comparable generic substitute.

7. Gasoline. There is no difference between brand and generic gas in composition, only in price.

8. Batteries. There can be a difference in strength between name brand and generic batteries but the price difference can more than make up for the disparity.

9. Cosmetics and Toiletries. Big name drug and retail stores offer their own brands of makeup, shampoo, body wash, etc. Frequently the store brands are almost exact replicas of the big name brands but much cheaper; the ingredients can be copied if there is no product patent.

10. Electronic Cables. When you’re buying a high-priced TV you usually need cables to go with it. There isn’t much quality difference between a generic electronic cable and a name brand one but the price difference can be great.

Continuing within the miscellaneous category, if you’re in need of a haircut, massage, or simple dental procedure, one of the cheapest ways to get these done is at a local cosmetology, massage or dental school. An experienced student will charge a fraction of the normal price.

To sum it up, you can make simple changes in your spending habits without sacrificing quality. Just think, if you could save $50 per week on food and miscellaneous expenses and put that money into a savings or investment account, assuming a 5% compounded rate of return, in 20 years you would have over $82,000. So check out the brand and generic choices and when it “makes cents” un-brand your shopping list.