Struggling Financially? 14 Practical Tips to Save Money

Living in America can be expensive, and lifestyle choices often increase the amount of money needed to live comfortably.

According to a 2019 report from the U.S. Bureau of Labor Statistics, the average household spent $61,224 annually. This included $7,923 on food, $20,091 on housing, and $9,761 on transportation.

On top of that, there’s the cost of childcare, clothing, entertainment, and debt repayment. For example, the average student loan debt was around $32,731 per graduate, with the average student loan payment being $393 a month. In addition, the average American had $2,824 in credit card debt in late 2019, leading to even more monthly bills.

The point is, the average American has a lot of expenses, and during tough financial times, these bills can become overwhelming. When the economy is uncertain, it’s a good idea to review household expenses and decide what can be cut to save money.

Here are 14 ways to reduce expenses and save money when you’re facing financial difficulties.

1. Start Using a Budget  

A monthly budget is like a plan for how you want to spend your money. With this approach, you can use a budget to cut costs in areas that don’t matter as much, while setting limits on necessary spending.

Budgeting helps because it forces you to track your spending and set realistic expectations for categories like food and entertainment. After using a budget for a while, you might realize you’re spending more than you thought in these areas. Reducing spending, even a little, can help save a lot of money without hurting your lifestyle.

Creating a budget doesn’t have to be hard. Start by listing your bills, bank statements, and income. Then, compare how much you spend each month to how much money you bring in. From there, create a plan that includes fixed bills, like rent or mortgage, and estimates for variable costs. Hopefully, you’ll notice areas where you can save money and start putting that extra cash into savings.

2. Use a Budgeting App  

If you’re struggling to create a budget, consider using a budgeting app. Apps like Mint.com can help you track your spending and see where your money is going. Another popular app is YNAB (You Need a Budget), which helps users build a budget that gives every dollar a purpose.

Other useful apps include Personal Capital, Clarity Money, and Qube Money. These tools can make budgeting easier by helping you organize and monitor your spending.

3. Shop Around for Auto and Home Insurance  

Even if some bills seem “fixed,” you can still save money by shopping around for better rates on things like auto and homeowners insurance. Comparing rates from different providers can help you find a better deal.

Opting for a higher deductible on your insurance can also reduce your monthly premium. Bundling multiple policies with one insurer or signing up for autopay might earn you discounts as well.

4. Cook Meals at Home  

Eating out is fun but can quickly drain your budget. Cooking at home is usually much cheaper. You save on both the cost of food and tips.

While cooking at home every night can feel like a chore, it’s an easy way to cut spending. You can simplify it by trying easy slow cooker recipes or dishes that only require a few ingredients.

To make your grocery budget go further, you can use MyFridgeFood, a website that helps you find recipes based on the ingredients you have at home.

5. Refinance Your Mortgage  

Your home is likely your most valuable asset, and with low-interest rates, it might be a good time to refinance your mortgage. This can lower your APR and monthly payment, potentially saving you a lot of money.

If you’re unsure about refinancing, you can check rates from multiple lenders to see how much you could save.

6. Consolidate Credit Card Debt  

Credit card interest rates can be high, averaging over 16%. You can save money by consolidating your credit card debt with a 0% APR card or a personal loan. Balance transfer cards offer interest-free periods for up to 21 months, giving you time to pay down your debt without interest charges.

Personal loans can also help with debt consolidation, offering fixed interest rates that are often lower than credit card rates.


7. Switch Bank Accounts  

If your bank account charges monthly or annual fees, it’s worth shopping around for a new checking or savings account. Many banks, like Capital One and Discover, offer accounts with no fees and competitive interest rates for savings.

8. Switch Cell Phone Providers  

Cell phone bills can be high, but switching providers might save you money. For example, Mint Mobile offers plans starting at $15 per month, while Ting charges based on your actual usage. T-Mobile offers international plans with data and text for as low as $50 per month.

Make sure to check coverage in your area before switching providers to find the best deal.

9. Cut Cable Television  

Cable TV can be an easy expense to cut when you need to save money. Streaming services like Netflix and Hulu cost less than $10 per month, and other services like YouTube TV and Sling TV provide live television for much less than cable.

You’ll still need an internet connection to stream, but that’s likely a necessity anyway. Cutting cable is an easy way to lower your monthly bills.

10. Use a Cash Back Credit Card  

A cash back credit card can help you earn money on purchases you already make. Some cards offer 2% back or more on spending, and most have low or no annual fees. You can use the cash back rewards to pay down your credit card balance or cover other expenses.

Just be careful not to overspend. Only use a credit card if you can pay it off in full each month to avoid high-interest charges.

11. Switch to a High Deductible Health Plan (HDHP)  

A high deductible health plan can save you money by lowering your monthly premiums, though you’ll have higher out-of-pocket costs. HDHPs also allow you to contribute to a Health Savings Account (HSA), which helps you save for future medical expenses while reducing your taxable income.

12. Cancel Unwanted Subscriptions  

If you’re paying for subscriptions you don’t use, it’s time to cancel them. Services like Trim can help you find and cancel unused subscriptions, as well as negotiate lower rates on bills like internet and cable.

13. Plan ‘No Spend’ Days  

Cut down on small, unnecessary purchases by planning a few “no spend” days each week. This forces you to use what you have and save money by avoiding impulse buys.

Over time, making a habit of no-spend days can lead to significant savings.

14. Limit Online Shopping  

Online shopping can be tempting, but it adds up. Avoid impulse buys by removing shopping apps from your phone and deleting saved credit card information from websites. This extra step can help you think twice before making unnecessary purchases.

Try waiting 24 hours before making any online purchase. Often, you’ll find you don’t need the item as much as you initially thought.

Bottom Line  

While financial hardship can feel overwhelming, it also presents an opportunity to reevaluate your spending habits. By taking control of your expenses now, you can reduce financial stress and make it easier to manage your finances if your income decreases in the future.

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