Yeah...wrong materials and in the wrong way will produce a wrong result. You won't want sand under it...it absorbs moisture and holds it...and it lies there and stinks. Not many bugs like to live in sand either and certainly no worms, so sand isn't the best base for deep litter. You'll want to encourage the types of bugs that will consume feces and rotten carbonaceous materials and sand prohibits that .
The hay, grass and such were another misstep, as you seem to have realized, but you don't have to buy a lot of shavings to create good deep litter....a bag or so a year, which works out to $10-$14 is all I use in a 8x10 coop...the rest of my materials are leaves, pine needles, twigs, even flower trimmings. If you live in a moist, humid climate, use dry materials. If you live in an arid, dry climate you can get by with using grass clippings, hay, etc.
It's not about being lazy, it's about working smarter, not harder, and developing a habitat instead of just housing.