1. Make a budget.
A budget is just a plan for your money. Think of it as a map to get you to your money goals. And you need a budget.
Because here’s the thing—if you do every single tip in this how to save money list, but you don’t have a budget . . . you’re playing yourself. You’ll end up accidentally spending everything you intentionally saved. Simply because you didn’t have a plan!
2. Say goodbye to debt.
I’m not the only one who says ditching your debt is a top tip for saving money. But even if I was, I’d still shout it from the rooftops, because I’ve lived this.
My husband and I paid off $460,000 in debt. (You read that right.) And getting that weight off our backs and out of our lives meant first deciding to stop borrowing money. Because borrowed money, aka debt, straight up steals your income.
I mean look at how much money debt is taking from the average America each month:
- Average Student Loan Payment: $3931
- Average Credit Card Payment (based on a 2% minimum payment): $121.762
- Average New Car Payment: $7263
- Total: $1,240.76 (and that’s just three kinds of debt!)
Imagine throwing $1,240.76 toward your savings goals instead of your past. Every month.
Now look at your debt. What would you get back in the budget if it was gone? Paying off debt takes time and effort—but keep your eye on how much you’ll save and the freedom you’ll feel when you finally get to pay yourself instead of paying debt.
3. Set a savings goal.
Sometimes the best way to save money is by setting a savings goal—a specific dollar amount with a set deadline. You can try the 100 Envelope Challenge and hit a $5,050 goal or use one of our savings trackers and fill in whatever amount you want.
4. Save money automatically.
Set up a direct deposit from each paycheck to your savings account. That way you don’t even think about the money you’re saving—you’re just saving.
5. Buy generic.
Hey, I don’t mind if you’re a brand snob about a few things. I won’t sit up here and tell you that Walmart Twist & Shouts taste the same as Nabisco Oreos. But please know a ton of name brands are exactly the same as the generic—except the brand name paid more for marketing. And that means you’re paying more for a fancy logo.
6. Meal plan.
The hardest budget line to keep in line? Food. The best way to save money on food? Meal plan. (Every breakfast, lunch, dinner and even snack!)
And build this meal plan based on:
- What’s already in the fridge, freezer and pantry (don’t waste food!)
- Your schedule (need dinners you can make quick for busy nights?)
- What’s on sale (pick recipes with those sale ingredients!)
- What needs the least amount of ingredients (because less is more here—more savings, that is!)
Then make a grocery shopping list—and stick to it. For real. Say goodbye to wasted food and drive-thru temptations and hello to legit money savings.
7. Cancel some subscriptions and memberships.
If you want to save money each month, pick one TV streaming service. Just one. Then do a quick subscription audit and see what else you can cut. If that subscription or membership isn’t changing your life and you’d rather have that money in your bank account, cancel it! Remember, most of these cuts are just temporary while you get that cash stacked.
8. Adjust your tax withholdings.
Listen, if you’re getting huge tax refunds each year, that means you’ve been loaning the government money every month without interest. I don’t think so—homie don’t play that. It’s time to adjust your tax withholding. Put that money back into your monthly budget.
9. Check your insurance rates.
Why is this a money saving tip? You could be overpaying or be underinsured. Both of those can cost you big. This is not an excuse to cut insurances, but it is an excuse to take our 5-Minute Coverage Checkup to make sure you’ve got the exact coverage you need.
10. Reduce energy costs.
If you’re looking for easy ways to save money on your electric bill, make a few tweaks to your home. Start with some simple things like taking shorter showers (notice I didn’t say fewer showers), fixing that toilet that runs continuously, washing your clothes in cold water, and turning the lights off when you leave a room. You’ll be shocked at how these small changes can really add up.
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