Need more money? If you answered yes, don’t worry — you’re not alone. While there are plenty of approaches to get more of the green stuff, one of the most effective ways of working with what you already earn is to master the art of saving money.
Watching your spending doesn’t have to mean tightening your belt or resigning yourself to bargain bins and scratch-and-dent sales for all of eternity! In reality, it’s just about cutting back on waste and spending your money on purpose, not out of habit.
Following these money-saving tips can help you cover those rising bills — with the freedom and flexibility to keep living life to the fullest.
How to save tons of money every month
1. How to save on monthly subscriptions (save around $219)
Did you know the average American household spends $219 per month on subscriptions? That’s $133 more than most of us realize.
Whether you’re bingeing The Fall of the House of Usher on Netflix, bumping the new Black Pumas record on Spotify, catching up on Premier League Mornings on YouTubeTV, or trying out a new turkey brining recipe via New York Times Cooking, those subscription costs can add up.
How to cut back on subscription fees and still get all your faves:
- Subscription hopping — Switch from one streaming service to another month by month. Catch up on everything you love, then switch again!
- Friends & family plans — Share subscription costs with your parents, siblings, or besties.
- Watch a few ads — Many services offer a ton of value for very little money if you’re willing to watch some ads along the way.
- Keep some, hop some — Keep the services you love most, and save money by switching to annual plans. For the ones you don’t use much, cancel them and check back in every few months to see what’s new.
2. How to save on groceries (save $3,335/year)
Did you know that Americans waste 108 billion pounds of food each year? That’s roughly 130 billion meals, costing Americans close to $408 billion annually. With the rising cost of food, it’s hard to fathom this much waste.
You don’t have to be Julia Child to master the art of cooking — it just takes a little dedication, time, and maybe even some bravery to chow down on meals that regrettably missed the mark. Keep things simple — you don’t need to spend $60 on fresh ingredients per meal. Instead, focus on eating healthy for less and cutting back on grocery expenses.
How to cut back on grocery bills and still eat what you love:
- Make a meal plan — Create a weekly guide to stay on track and avoid excess spending or wasting food.
- Clip coupons — Your local newspaper and grocery stores can offer coupons to save.
- Be creative — You can whip up soups, omelets, casseroles, or stir fry with leftovers.
- Freeze food for later — Frozen veggies, cuts of meat, bagels, even leftovers; these can all be frozen and saved for later.
- Don’t shop hungry — Avoid going to the grocery store with an empty stomach and making impulse purchases based on hunger.
3. How to save on books, audiobooks, and more (save $50/mo or more)
In the United States, we’ve been spending big on entertainment — Americans spent $25.92 billion on books in 2022 and nearly $121 million on music. That’s a pretty substantial chunk of change!
If you’re a big fan of books, audiobooks, and magazines, consider borrowing these items from the local library — you can access their curated collections for free and save a ton of money annually.
How to save money on books, audiobooks, music, and more:
- Entertainment galore — Stop by your local library for books, movies, music, and even TV series to get rid of streaming fees.
- Borrow digitally — Library apps like Hoopla and Overdrive provide digital, 24/7 streaming access to your public library’s complete network of collections — including books, movies, TV, and music.
- Share Kindle books — Kindle goes beyond family sharing, letting you loan many of your ebooks to just about anyone.
- Sign up on review sites like NetGalley — You can get free books and audiobooks to review, often before they even come out.
4. How to save on utilities (save 15% or more on your energy bill)
The temperatures are cooling in the northern hemisphere and it’s a great time to think about saving on utilities. Did you know that the EPA estimates you can save 15% on heating and cooling costs just by making sure your home is well insulated?
A home that fails to retain heat during the long winter months (or cool air in the hot summer season) is going to leave you feeling uncomfortable while carrying the cost of a higher utility bill. The best way to save is by making sure your home is properly insulated and managing your thermostat.
How to save on your utility bills:
- Smart thermostat — Avoid wasting energy by setting it higher/lower when you aren’t home or at night.
- Insulation — Ensure your home is adequately insulated to retain heat/cool air from your HVAC system.
- Update sealing, windows, and doors — Old windows and doors can make homes drafty in the winter; consider replacing them to save on your utility bills.
- Pipe leak detectors — These affordable sensors can let you know if you have any leaky pipes, safeguarding your home and your utility bill.
5. How to save on insurance (save 5-25% on yearly costs)
Insurance is how we safeguard our possessions and put our vehicles on the road — we can’t operate a car or take out a mortgage without it. In 2021, Americans spent an average of $1,547 on auto insurance and $1,582 on homeowners insurance — that’s over $3,000 annually!
You don’t need to cover your home in bubble wrap, fill in the pool, throw out your trampoline, and drive 20 mph to get a good insurance rate — there are several different methods to lower your monthly premiums and save money.
How to save money on insurance:
- Shop plans — Shopping around for better insurance premiums from different providers can save you a ton of cash.
- Bundle policies — Lots of insurance companies will offer discounts if you bundle policies, especially if you’ve been a long-time customer. That alone can save you a lot.
- Ask your agent — Get in touch with your agent to see if there are any discounts you can use to your advantage.
- Home improvements — Your home insurance policy may offer discounts for adding a security system, making home improvements, or removing high-risk items.
6. How to save on retail therapy and other expensive habits (save a LOT!)
Let’s be honest, we all have some bad habits, some of which can cost us a good chunk of change. We’re not here to cast judgment — just to offer advice from a financial perspective.
A few costly habits to consider cutting are:
- Food delivery/takeout — Americans spend $3,100 annually on take out or delivery, like Uber Eats or DoorDash.
- Retail therapy — The average person in the US spends about $1,653 annually on shopping to make themselves feel better.
- Bar hopping — This varies from city to city, but prices of alcohol outside the home (i.e. in a bar or club) have become over 100x more expensive than they were in 2000!
- Vaping — Americans who vape spend anywhere from $1,100-1,500 yearly (for cigarettes, it’s double that).
7. Hit the pause button (save hundreds per year)
Online shopping has revolutionized the way we purchase things we need. It’s convenient, but it also comes with a price — you can’t scroll through social media without seeing hundreds or even thousands of ads every day.
25% of Americans shop online at least once a month and spend $5,381 on average annually. While some of those purchases are more than worth it, it’s important to separate out what you really want from those momentary impulse buys.
How you can save on shopping:
- Save posts for later — If you see a great ad on social, save that post for later instead of buying right away. That pause, even for an hour or two, gives you time to reflect on what you really want.
- Decide if you really want those emails — The marketing blast is real — consent to emails and you’ll receive thousands! How can you fix this? Keep the ones you love, but unsubscribe from the rest.
- Shop all at once — If you buy things one at a time through the week, it’s easy not to realize how much you’re spending. Instead, set some time aside to shop all at once so you can see the real total.
- Save to cart, save for later — This is a specific version of shopping all at once. Instead of impulse buying, save things to your cart and look at them together. If it feels like too much, save a few things for later instead.
Seven more tips to make the money you save go even further
Want an extra boost for your savings? These simple power-ups can take your budgeting and saving habits to the next level.
1. Pay down high-interest debt
Wait, this article is about saving money, right?
It may sound counterintuitive, but spending some extra money to pay off your debt can actually help you save money in the long run.
Those high debt balances can really eat up your budget, especially from credit cards (with an average APR of 21.19%). Paying the minimum balance on your credit card debt every month usually comes with long pay-off schedules and a ton of interest — money you shouldn’t have to spend.
Stop giving credit card companies your hard-earned cash. Instead, create a plan to pay off that high-interest debt as quickly as possible.
Making it a priority will save you money over time and get you out from under those monthly payments, giving you more flexibility to spend in other areas, pay off other debt, or increase your savings.
It will also improve your credit score and give you access to credit cards with better rates and offers, like automatic cash back on every purchase.
2. Automate your savings
It’s far too easy to skip your savings deposit. Everyone’s been there. You plan on adding money to your savings account, but by the end of the month, there isn’t enough left to do it — or you just plain forget.
Create an automatic savings plan and put your savings on direct deposit to keep your savings goals on track. Just set up a recurring transfer from your checking account to your savings account!
Be sure to pick the day of the month that makes the most sense to you. A few days after payday is often the perfect day to do that, giving that paycheck just enough time to clear and then putting the money up right away.
3. Max out your employer’s 401(k) match
A great way to increase your retirement savings is to see if your employer offers 401(k) matching funds. When you add money every month to your 401(k), many employers will match those contributions up to a certain amount.
In other words, they’re willing to give you free money just to help you save for retirement. Free money is a rarity in this life — don’t leave it on the table!
4. Try a savings challenge
A fun, DIY way to save money in the short term is to participate in a savings challenge. The idea is to make a game out of saving money, and you can even challenge your friends.
One great example is the no-spending challenge — try not to make any non-essential purchases for an entire week!
Next, switch things up and go for a vice-tax challenge. Pay a “fine” to your savings account every time you skip a good behavior or do a “bad” one. What counts as good or bad is completely up to you.
For example, you could pay a fine to your savings account any time you skip your workout or whenever you eat out at a fast-food joint. Whether you build your savings or build healthier habits, you win either way.
5. Delete that automatic billing info
Saving your credit card or debit card information at a favorite online store like Amazon or on Instagram makes shopping much more convenient. Unfortunately, that convenience also makes it easy to spend money without thinking about it.
By removing your credit card information or your PayPal password from your browser, individual websites, and even your cell phone, you create a small barrier between your bank account and impulse buys.
It also has the added bonus of protecting you from online hackers by making it that much harder to steal your information!
6. Plan for upcoming expenses
Big upcoming expenses can definitely hurt your savings if you’re not prepared for them. The best way to stay ahead and not sacrifice your hard work and discipline is to plan ahead and prepare for big purchases and expenses.
Is it time to retire your trusty 1984 Peugeot 205 and upgrade to something a little more contemporary? Are you planning on cruising through the Aegean, island hopping from Naxos to Mykonos? Or maybe those guitar lessons have been paying off and you’re ready to buy a brand new Fender Stratocaster! Whatever your big expenses are, you can mitigate any necessity to dip into your savings by planning ahead and saving up.
When you reach the point where you can cover your new purchase, keep setting money aside for your emergency fund to take care of any surprises. When you need to make withdrawals from that fund, be sure to pay yourself back.
7. Find a side hustle
If you’re struggling to stay afloat and need to start making some extra cash to pad your savings, consider finding a side hustle to earn a few extra dollars. Start by evaluating your weekly schedule and your interests — you need to find something that works with your lifestyle and something you have enough time for!
Do you live in a city with lots of events? Consider signing up for a ridesharing app like Uber or Lyft and take a look at an event calendar in your city — you can take people to and from the big game or concert and make some extra money fast.
Not into driving? There are plenty of other options you can explore — it can be easy and fun to find a side job to work on your own terms, and earn some extra money in the process.
The very best way to save money
At the end of the day, the best way to save money is to be intentional about your spending.
Buy the things you need and the things that bring you joy. But if your gut doesn’t feel sure something’s worth it, let that one go.
To help you make those decisions, track the money you’re spending on your favorite retail sites and in those impulse-buy categories. By staying on top of your finances, you’ll know what you need to do to make ends meet — by spending less, by building your income, or both.
If you aren’t already using an app, Quicken Simplifi lets you track your spending and a whole lot more. Try it today.
