Looking for a way to save money and make your income go farther? Try buying gneric products instead of brand names whenever you can.
Generic Products Offer High Value at Low Cost
Most low-cost generic products, from prescription and over-the-counter drugs to food and gasoline, are equal in quality to their brand-name counterparts. Many generics actually are the same products—produced by the same manufacturer with the same ingredients, or by a different manufacturer using the same formula—but with different packaging.
Although the money you save on individual generic products may seem relatively small, your cumulative savings over time will be substantial.
Branded vs Generic Products
Companies spend billions of dollars every year promoting their brands, trying to convince consumers their branded products are best. But since generic products are often identical to the branded versions, what companies are really selling with brand-name products is the perception of something better.
So why doesn't everyone buy generic products?
When consumers don't buy generic products, most often it's because they either don't trust the quality or they think it makes them look bad. Some consumers worry that generic products are inferior to brand-name items--a needless and unfounded fear in most cases--while others think that buying low-cost generic products reflects poorly on their income, status or personal taste.
Generic Products That Can Save You Money
Here are just a few examples of generic products that can save you a lot of money at the cash register:
- Over-the-counter medications: The Food and Drug Administration requires generic medications to have the same active ingredients as the patented medications they replace, making over-the-counter medications a great way to save money by buying generic. Some people worry about buying generic medications because they don't want to take chances with their health, but pharmacists and physicians will tell you that generic drugs are just as effective as, and much cheaper than, brand-name medications.
- Breakfast cereal: Consumers who buy generic breakfast cereal can save 25 percent to 50 percent on every box. Generic cereal looks and tastes the same, or almost the same, as branded cereal, and often comes in a bigger box for less money.
- Fruits and vegetables: Lettuce is lettuce, tomatoes are tomatoes, and bananas are bananas, whether they are generic or bear a sticker with a brand name proudly displayed. The important thing when buying produce is to check for freshness, not labels.
- Staples and spices: Flour, sugar, salt, spices and other single-ingredient items are all the same. Government regulations require the same production and storage standards for generics as for branded items. Ironically, brand-name staples are rarely on sale, so generic versions are almost always the best choice.
- Gasoline: Off-brand gasoline is essentially the same as the brand-name gas you can buy at stations run by Shell, Exxon, BP or other major oil companies, but it costs about 20 cents less per gallon. Some off-brand stations get their gasoline from the same trucks that supply the brand-name stations.
- Make-up and beauty products: Drugstores offer generic versions of many beauty products for half what you would pay for brand-name products. If the products are no longer patented, manufacturers are free to make generic products that are exact copies of branded ones. Same ingredients, same formula, same results.
- Toothpaste and other personal care items: You don't have to use expensive brand-name toothpaste to take care of your teeth. Just brush at least twice a day with toothpaste that is ADA-accepted and contains fluoride and you'll be fine, according to the American Dental Association. "Just pick the one you like or feel you can afford, whether it's paste or gel," said ADA consumer adviser Maria Lopez Howell in an interview with AARP. The same goes for many other personal care items; generics often cost less and work just as well as brand-name products.
Sample Generic Products to Find Ones You Like
Not every generic product works for every person, just as not everyone likes the taste or feel of every brand-name product, so sample generic products in small amounts before you make big purchases.
People who drink a lot of soda and like the taste of generic cola can save a bundle, for example, but just as some people like Coke better than Pepsi and others prefer Pepsi over Coke, some people simply don't care for generic cola. That doesn't mean there is anything wrong with generic soda. It's just a matter of personal taste.