To save money, try different methods like setting a savings goal, keeping track of spending, creating a budget, cutting back on non-essential expenses, taking on a savings challenge, and paying off debt. Whether you’re building an emergency fund or planning for retirement, reaching your financial goals begins with smart saving. Fortunately, saving money can be more manageable than it seems. For example, saving just $13.70 each day will give you $5,000 by year’s end. If you save $27.39 daily, you’ll have $10,000 saved, not including interest.
Making a budget, automating your savings, reducing optional spending, and looking for discounts can all help you save. Here are 26 simple ways to start saving:
1. Set a Goal
Setting a clear goal can keep you motivated. For example, you may want to save for a vacation, a new car, or an emergency fund to avoid relying on credit cards. Decide on a target date and calculate how much you need to save each month to reach your goal.
2. Track Expenses
Tracking your spending for a month can highlight areas for savings. You can use paper, a spreadsheet, or an app. Some banks offer tools to track expenses, or you could try apps like Dollarbird, Fudget, or GoodBudget.
3. Make a Budget
A budget helps prevent overspending. To create one, list your monthly income, fixed expenses, and variable expenses. You might try the 50/30/20 budgeting rule, where 50% goes to needs, 30% to wants, and 20% to savings or debt. Tools like PocketGuard, You Need a Budget, or HoneyDue can also help.
4. Automate Savings
Set up automatic transfers to your savings account when you get paid. Some banks allow you to split deposits into multiple accounts. High-yield savings accounts can also help grow your savings with higher interest.
5. Cancel Unused Subscriptions
Review your bank and credit card statements for unused subscriptions and cancel those you don’t use to save money.
6. Buy Generic Brands
Choosing generic versions of groceries, household items, and medications can save a lot. For prescriptions, ask your doctor if a generic is available.
7. Look for Discounts and Coupons
Many businesses offer rewards programs with discounts. Join these programs or search for online coupon codes to save money. Make sure to only use discounts for items you already plan to buy.
8. Join a Buy Nothing Group
“Buy nothing” groups help you save money and reduce waste. Through groups like Buy Nothing or The Freecycle Network, you can find or give away items for free, from clothes to furniture.
9. Shut Down Impulse Spending
Unsubscribe from marketing emails, text alerts, and social media accounts that encourage you to shop, and delete shopping apps from your phone.
10. Pause Before You Purchase
Waiting a set time, like 72 hours, before buying non-essential items can help curb impulsive spending.
11. Cut Utility Usage
Lower water, gas, and electricity bills by taking shorter showers, using energy-saving devices, and being mindful of thermostat settings.
12. Try a Savings Challenge
Make saving money fun with a challenge, like the 52-week savings plan or a no-spend weekend where you only pay for essentials.
13. Pay Down Debt
Paying off credit card balances, especially high-interest ones, can free up money for savings. The debt avalanche or snowball methods are helpful strategies.
14. Consolidate Debt
Debt consolidation with a lower-interest loan or a balance transfer card offering 0% interest can help you pay off debt faster.
15. Reduce Restaurant Spending
Cooking at home instead of eating out saves money. If you do eat out, limit it to special occasions or opt for lunch over dinner.
16. Learn to DIY
Do-it-yourself projects for repairs, haircuts, or car maintenance can help reduce expenses.
17. Cut Your Cable, Phone, and Internet Bills
Explore cheaper plans, bundle services, or contact your provider to negotiate lower rates.
18. Use a Rewards Credit Card
A cash-back credit card can help you earn rewards on essential purchases. Be sure to pay off the balance each month to avoid interest.
19. Shop Around for Insurance Savings
Comparing insurance quotes annually can often get you a better rate for the same or better coverage.
20. Find Inexpensive Ways to Treat Yourself
Reward yourself in low-cost ways, like at-home manicures or a small treat at the end of the month.
21. Buddy Up
An accountability partner or an app like BeeMinder can help you stay on track with your savings goals.
22. Earn More Money
Boost your income through extra hours, a part-time job, or a side hustle, which could include anything from tutoring to selling items online.
23. Cut Your Transportation Costs
Consider public transportation, carpooling, biking, or working from home to save on commuting costs.
24. Trim Your Housing Expenses
If housing costs are high, consider downsizing, finding a roommate, or negotiating rent terms.
25. Find Free or Low-Cost Fun
Free activities like hikes, park visits, and library events offer ways to have fun without spending much.
26. Swap With Friends and Family
Sharing or swapping items with friends or family, like books, tools, or games, can help you save money.
The Bottom Line
Maintaining a good credit score can also help you save by making it easier to get lower interest rates on loans and credit cards. You can check your credit report for free and take steps to improve your score if needed. A higher credit score can make reaching your savings goals easier.
