How to save money online?

The internet makes it easier to spend, but it also provides powerful tools to ensure you never pay full price again.

Person using a laptop to compare prices online

Automating Your Savings

Before you check out on any website, you should leverage automation. Install browser extensions like Honey or Rakuten. Honey automatically searches for and applies coupon codes at checkout, while Rakuten provides a percentage of cashback on your purchase. For Amazon shoppers, CamelCamelCamel is an essential tool—it shows the price history of any item. Often, a 'sale' isn't actually a sale; CamelCamelCamel lets you see if the price was lower a month ago, allowing you to wait for a true discount.

Another powerful tactic is the 'Abandoned Cart' Strategy. Sign into your account on a website, add the items to your cart, and then close the tab. Many companies have automated email flows that will send you a 10-15% discount code within 24-48 hours to 'remind' you to finish your purchase. This requires patience, but it works on about 30% of major retail sites.

The Psychology of Digital Spending

Incognito Mode: For travel (flights and hotels), always search in an incognito or private browser window. Travel sites often use cookies to track your interest and may raise prices if they see you've looked at the same flight multiple times.
Unsubscribe from Marketing: The '20% off sales' emails are designed to make you spend money you weren't planning to. If you don't see the sale, you won't feel the 'need' to buy. Unsubscribe from all retail email lists.
Remove Saved Credit Cards: Delete your credit card info from Amazon and Google Pay. The simple act of having to get up and find your wallet creates a 'friction' that stops impulse buys.

Vetting Digital Deals

Be careful with 'Daily Deal' sites like Groupon or Zulily. They often create a sense of urgency (FOMO) that makes you buy items of questionable quality. Always cross-reference the 'deal' price with other retailers. Finally, use Cashback Credit Cards for all online purchases (and pay them in full!) to get an extra 2-5% back on every dollar spent.

Real Life Examples

Mrs. Williams

Teacher • $60k Income • 20% Savings Rate

Mrs. Williams never buys anything online without checking for a coupon first. She keeps a wishlist on CamelCamelCamel and only buys when she gets an alert that the price has hit its yearly low.

Mr. Johnson

Project Manager • $90k Income • 10% Savings Rate

Mr. Johnson uses Honey but often forgets to check for cashback. He's saving some money, but he's leaving an extra $200 a year on the table.

Mr. Smith

Sales Executive • $120k Income • 5% Savings Rate

Mr. Smith is a victim of 'One-Click' ordering. He sees an ad on social media, clicks, and buys instantly. He often realizes the item is junk once it arrives, but he never bothers to return it.