Ionic liquids (ILs) are liquid organic salts at room temperature which are composed of only ions (cations and anions). Ionic liquids are regarded as “novel solvents” and have been gaining attention as alternatives to volatile molecular organic solvents. Ionic liquids have outstanding properties, such as negligible vapor pressure (no or limited evaporation or volatilization), low melting point, thermal stability, and ionic conductivity. They can be used in efficient and clean energy production and storage. The synthesis of the low-cost and performance-effective ionic liquids using inexpensive raw materials is presented and characterized. Characterization was done using Thermogravimetric Analysis (TGA), Fourier Transform Infrared Spectroscopy (FTIR), and Scanning Differential Thermometry (DSC-TGA). Cost effective ionic liquids were synthesized and characterized and then compared to commercially available ionic liquids. Results for newly synthesized ionic liquids suggest that these cost effective ionic liquids were electroconductive and thermally stable when compared to the raw materials used for synthesis of ionic liquids. The thermal stability of these ionic liquids was less, however, when compared to the regular higher cost ionic liquids. FTIR characterization also provided secondary evidence on expected functional groups of newly synthesized ionic liquids. Viscosity of the syntehsized ionic liquids was higher when comapred to the commercially avaialable ionic liquids.