7 Ways the ‘Switch & Save Strategy’ Can Boost Your Bank Account
If you feel like things are getting more expensive these days, you’re not alone. According to the Bureau of Labor Statistics, consumer prices rose around 3.5% from March 2023 to March 2024.
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Side gigs and smart investments can help boost your income, but what can you do about rising prices? Lynnette Khalfani-Cox, founder and CEO of The Money Coach, teaches her clients to use the “switch and save” strategy, a method of being smarter with your money while still enjoying your lifestyle.
This guide will cover what you need to know about the “switch and save” strategy, plus seven data-backed examples of how it can help you save.
What Is ‘Switch & Save’?
According to Khalfani-Cox, “switch and save” is a simple method to help people stop living paycheck to paycheck. The basic idea is to swap something you overspend on with a more affordable alternative.
“Switch and save” is not a strategy to make you rich. However, it is a tool you can use to reduce your monthly spending and save a little more of your paycheck. Those savings can go toward paying off debt, investing in a retirement account or saving up for an important purchase. In other words, you should think of this strategy not as a single solution but as another money-saving tool to add to your financial arsenal.
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Saving Without Sacrificing
The key advantage of the “switch and save” strategy is that it lets you save money without making major sacrifices.
Khalfani-Cox promotes this strategy as a way to avoid “frugal fatigue.” She explains that tightening your financial belt and sacrificing things you love can ultimately lead you to give up and splurge. Strategies such as “switch and save” are more sustainable in the long run because they offer more flexibility than strict budgeting.
7 Real-Life Examples of ‘Switch & Save’
The idea of “switch and save” is pretty simple. But does it really work? Here are seven cases where switching to a low-cost alternative will save you money.
Groceries
No matter how expensive they get, you can’t avoid buying groceries. But you can save money on the foods you love by making a few switches. Here are a few ways to do that:
Switch brands: One CNET study found that shoppers can save as much as 40% by switching from name-brand to generic groceries.
Switch to home cooking: If you’re a fan of meal kits or takeout, try swapping one to two meals per week to home cooked. Raw ingredients are almost always cheaper than prepared meals.
Switch grocery stores: Prices are not consistent store to store. Food 4 Less, Grocery Outlet, Costco and Aldi are ranked among the most affordable U.S. grocery store chains.
Insurance
Auto, renters, home and life insurance costs vary by provider. While you can’t stop paying for the insurance you need, you might be able to save on your monthly bills by switching to a cheaper company.
One 2022 study showed that 26% of policyholders saved $200 or more within a year of switching to a new auto insurance provider. Shop around and compare quotes to see where you could save. While it’s generally cheaper to bundle your home and auto policies, you might find better deals from separate providers.
Prescriptions
Prescription medication is another unavoidable cost. However, if you’re currently taking name-brand drugs, you could save up to 85% by switching to a generic version. Generic prescription drugs meet the same FDA standards as name brand, so switching is usually perfectly safe.
That said, don’t switch your prescriptions without talking to your doctor first — not all drugs have a generic equivalent. Ask your doctor about potential alternatives to your meds.
Clothing
Love to shop? You don’t have to sacrifice your style to save money. Here are a few ways to switch and save on your clothes budget:
Switch to secondhand: A 2022 study found that consumers save an average of $1,760 per year by thrifting instead of buying new clothes. If thrift stores aren’t your thing, you can also try Facebook Marketplace, eBay and other online platforms.
Switch clothing brands: Try finding similar styles in cheaper stores — you can always dress it up with a name-brand accessory.
Switch to a rental service: If you don’t want to sacrifice designer brands, try a service that lets you rent designer clothes for less than half the cost of retail.
Phone Plans
In an interview with Yahoo Finance, Khalfani-Cox used prepaid phones as her first example of a successful “switch and save” tactic. Contract phone plans are typically $20 to $30 per month more expensive than prepaid plans. Consider switching to a cheaper provider or asking your current provider about its prepaid options.
Credit Cards
The average credit card APR is around 23%, according to the Federal Reserve. You can cut your credit card interest rate by switching to a new card and transferring your existing debt. Look for a credit card with a 0% APR deal. According to Khalfani-Cox, borrowers who owe $10,000 can save up to $2,000 with a 0% APR deal that lasts 12 months.
Dining Out
Finally, you don’t have to cut out your favorite outings and celebrations to save money. Here are a few simple ways to make your nights out more affordable:
Switch your restaurant: Fine dining typically costs around $50 per person, while casual dining entrees typically cost half that. Try exploring more of the casual options in your neighborhood.
Switch your order: Go ahead and visit that high-end restaurant for a special occasion – just try to order a low-cost dish, share a plate with your partner or skip the pre-dinner cocktail.
Switch your schedule: Some restaurants offer lower prices at different times of day. Look for happy hour deals, lunch specials and early bird discounts in your area.
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