“The number one enemy of your wallet is impulse.” – Clark Howard.
Few people in personal finance command as much respect as Clark Howard. An expert in teaching Americans how to manage their budget, save money, and avoid waste, Howard’s advice is proven and rooted in practicality.
Through the years, he has refined and developed his time-tested strategies for earning money during your down hours to show you how small changes can bring you big rewards in your bank account. What follows are Clark’s habits as an insider to help him stay on course with his budget and financial goals. Every individual wishes to spend more smartly and save more. Start here.
Prioritize Needs Over Wants
This is famously Howard’s split: essentials versus nice-to-haves. According to a 2023 LendingTree study, 74% of Americans have at least one large purchase they regret. Do your due diligence every time and each time you buy, before leaving it in your wallet to avoid that fate. Howard suggests slow decision-making for non-essentials, giving yourself a “cool-off period” to prevent regret-fueled spending.
Try to distinguish what you need from what you want. A simple way to avoid wasting and saving unnecessary money is to pause momentarily, look back, and think before spending.
Automate Your Savings
Savings automation is a core strategy of Howard’s. According to the Federal Reserve, 36% of Americans are unable to cover a $400 emergency with cash. One thing that automation does is to ensure that you pay yourself first, which means that a portion of your pay is directed to your savings or IRA.
Set up an automatic transfer of $20 a week. That’s over $1,000 painlessly saved over the course of one year. Even better, Howard stresses that habitual, automatic savings always outweigh sporadic, large deposits.
Be Relentless About Comparing Prices
Clark is a fervent advocate for price comparison. According to Statista (2023), 65% of Americans use price comparison apps before making every major purchase. The first price is not necessarily your lowest price; Howard recommends never assuming.
Don’t commit before checking at least three sources. Small savings on groceries or electronics add up quickly throughout the year. This diligent habit keeps more cash in your wallet and reduces buyer’s remorse.
Avoid Brand Loyalty
Howard advises against sticking with one name brand, as generic products and store brands are often of equal quality to name brands. Additionally, a NielsenIQ study in 2022 reported that private label brands experienced an 11% sales increase due to inflation, making budgets tighter.
Run tests on generic versions of pantry staples and over-the-counter medicines. Over a year, you can shave hundreds off that amount without making sacrifices.
Maximize Rewards Programs
Clark uses rewards for daily spending and always warns against overspending just for points. As pointed out by CreditCards.com, average credit card rewards in the U.S. are worth 1-2% per dollar. Then, you stack those rewards by enrolling in your grocery store rewards program and making the most of cashback credit cards (paid off monthly).
Always try to redeem your Rewards as soon as you have some, because many companies can revoke the points if the customer has gone inactive. Consider them a discount on essentials, not a reason to buy more.
Never Buy What You Can Borrow or Rent
Howard recommends lending or renting seldom-used items. The equipment rental market in the U.S. has taken off, and IBISWorld reports that it will exceed $60 billion in 2023.
You should not buy a power tool or party tent without checking your network or local rental service to see if you can rent it first. Borrowing is a great way to slash clutter, providing you with access to high-quality items for a fraction of the price.
Use the “10-Second Rule” for Impulse Buys
Impulse purchases are budget killers. Howard’s advice: stop for 10 seconds before making any unscheduled buy and consider if it meets your core needs. In 2023, a Slickdeals survey revealed that, on average, Americans allocate $150 per month on impulse item purchases. Use this pause to take control of spending.
You should proceed if you think about it logically and still care about the item. Quite often, you will put it back on the shelf, which will reduce time in your unit and save you money, not to mention that you will not have things lying around everywhere.
Buy Used Whenever Possible
Clark stands by buying pre-owned. Facebook Marketplace, eBay, OfferUp, and other such platforms allow you to get great deals on high-quality items. Also, in 2023, the resale of clothing and electronics grew by 15% (ThredUp Resale Report).
First, try searching for deals on used technology, furniture, and cars. More often, you’ll find better brands at a lower price without having to go out of your budget and compromise on sustainability.
Track Every Dollar
Howard encourages you to track your spending. Overspending is easy, especially when recent surveys by The Penny Hoarder found that 60 percent of Americans don’t keep a budget. Apps or simple spreadsheets are a way to track income and expenses.
This visibility highlights recurring leaks and empowers you to make necessary changes based on your learning. As you start making changes, you can then create real financial progress.
Negotiate Everything
Profitable negotiation isn’t just for car dealerships. Clark notes that asking for better rates, even for medical bills and cable packages, is often a successful approach. Consumer Reports says 68% of people who bargained over medical bills last year were successful.
If the bill looks expensive, ask if it can be made more affordable, perhaps with discounts or payment plans. This can save a significant amount of money, especially on items we purchase regularly.
Delay Major Purchases
Howard also advises waiting 24–48 hours before buying high-ticket items. This powerful cooling-off period is when you can consider what you truly need versus what you desire. Forbes found that those who deprive themselves of splurges not only save 10 percent of their purchases but can cut up to 20 percent of their overall spending.
Purchase cooling-off rules should be applied to future purchases. Thanks to this, you’ll often find the urge to go through with the buy passes, or you can find a better deal, saving your wallet from the regretful action of an impulse purchase.
Eat at Home as Much as Possible
Dining out eats away at savings. According to the Bureau of Labor Statistics, the average American household spent $3,639 on eating out in 2022. Howard advises spending a little time planning meals and batch cooking to save time and money.
Switching two weekly take-out meals for a homemade meal is a good start. You will save hundreds (or more) and learn new skills in your kitchen.
Ditch Subscriptions You Don’t Use
Howard demands that the subscription runs be audited regularly. A recent C+R research study found that the average American spends $219 monthly on subscriptions, most of which go unused.
Review your services quarterly. See if you can cancel what you don’t value and don’t care about, downgrading the tiers. Save those forgotten payments to savings instead.
Focus on Experiences Over “Stuff”
Clark points out that experiences tend to produce longer-lasting happiness than possessions. A 2023 American Psychological Association survey confirms this: shared adventures create enduring memories, while possessions often lose their luster.
Spending money on objects you’ll enjoy for only a short period should be redirected towards experiences you treasure. Not only does this leave your budget safe, but it paints a life far exceeding the cash you will save from your wallet.
