What Are ‘Soft Savings’ and How Can It Help Your Finances?

Americans are looking into new and innovative ways to save money during this current economic crunch. One option that you need to consider is the concept of “soft savings.”

What Are Soft Savings?

Soft savings refers to a way to passively put money away as you go about your normal, everyday life. With “indirect savings” or “non-tangible savings,” you implement cost reductions or financial benefits that allow you to save money over time.

Soft Savings Vs. Hard Savings

The difference between soft savings and hard savings is that the former is not as easily quantified or measured in monetary terms. Unlike hard savings, which are concrete and directly impact the bottom line, soft savings are more qualitative and are often related to improved efficiency, productivity, or customer satisfaction. Here are some examples of soft savings:

Soft savings are important for individuals and businesses. While they may not have the same immediate impact on the bottom line as hard savings, soft savings can lead to long-term benefits such as a nest egg.

What Are Some Examples Of Soft Savings?

Here are some ways to “save softly” in your life:

Eat Cheap During the Week

Instead of going out to eat during the week, save that for the weekend. For example, if you’re spending $20 every other day on restaurants or lunch, save that money. In one month, you will have stashed $100.

If you’re traveling out of town, skip the restaurants during the weekdays. When you arrive at your destination, save money by asking for the restaurants that the locals prefer. Not only will you be sure to avoid the tourist spots, but it’ll be a lot cheaper.

As a bonus, eating where the local community eats will give you a chance to experience the authentic dining scene on its term.

Read how to save on groceries.

Use Digital Or Print Coupons

The next time you see the crazy coupon lady on aisle 7, ask if she’ll teach you a thing or two. Coupons are the easiest way to save money at the grocery store. 

You can clip coupons from sales flyers in the store or go online; either way you save money.

Buy Items In Bulk

Believe it or not if you buy in bulk, you’ll get a better price than if you bought food wrapped individually. 

That means places like Sam’s and Costco will get your grocery dollars, but it’ll be worth it.

Be Flexible With Your Travel Dates

When it comes to saving money on travel, knowing when and the best time to book your trip is half the battle.

Travel experts say that if you book a flight between 21 and 30 days out, you should be able to get a deal.

But no matter what, it pays to be flexible with your travel dates. Use Google Flights to find wiggle room in the days you plan to travel. You’ll be thankful for the money you save.

Read our Travel Savings Guide to save money on your next trip.