Dave Ramsey Warns You Should Never Buy These Items in Bulk

Don't let a popular savings strategy backfire on you.

Financial expert Dave Ramsey and I don't always see eye to eye on personal finance matters. Ramsey, for example, commonly tells consumers to shun credit cards and never use them. I happen to think credit cards can be a very helpful and financially rewarding tool when you pay yours off in full every month. That way, you can rack up cash back in the course of buying the things you need.

Ramsey also thinks that consumers don't need to bother having a credit score, or a good one, because ideally, they shouldn't be borrowing money. I think it's important to have solid credit because you never know when you might need money in a pinch. 

Not surprisingly, Ramsey and I also don't fully agree on the strategy of buying groceries in bulk. We both think it can lead to a nice amount of savings. But we may differ slightly in our approach.

Ramsey's bulk buying rules make sense, but only for some consumers

Ramsey writes that it's best to avoid buying perishable groceries in bulk, such as fruits, vegetables, and dairy products. The logic is that these items are likely to spoil before you get a chance to consume them, so buying them means taking a risk. And if you end up throwing away a portion of your bulk haul, you won't end up saving money -- if anything, you'll be setting yourself up to lose money.

His logic makes sense in that you shouldn't buy things in bulk if you don't think you can use them up in time. But for some people, buying perishables in bulk makes plenty of sense. 

My family is a prime example of this. We often shop at Costco on a weekly basis to stock up on produce, dairy products, and different meats. And we consistently save money on these items by purchasing them in bulk, spending less than what we would at the grocery store. 

Meanwhile, my family of five eats certain produce items, dairy products, and meats consistently. We also happen to have a spare fridge in our home for overflow items that can't fit in our main one. So all told, the strategy of buying these perishable items in bulk has worked out well for us. We commonly finish up our haul well before it goes bad on us, which means buying these products does make sense in our world, despite the risks Ramsey calls out.

Take your own situation into account

Ramsey means well when he warns consumers not to purchase perishable products in bulk, just like he means well when he warns against using credit cards. Ultimately, Ramsey wants consumers to grow their savings accounts and avoid a cycle of debt. So his advice is well-intentioned, even though it can sometimes come off as a little extreme.

Now to be clear, I agree with Ramsey that some people should not purchase perishable groceries in bulk. But I also think it's important to consider your situation individually before writing off bulk produce or dairy purchases.

If you have a larger family, and you're talking about items you eat regularly, then go ahead and buy them in mass quantities if it results in a nice amount of savings. It's a strategy that works just fine for my family, so it may work out well for yours, too.