The Best Way to Save Money: 20 Money-Saving Tips
We all want to save a little more money, and everyone has their own ways to save money. But you will really only learn how to start saving money when you understand healthy money habits and allow your future needs to be more important than what you want currently.
Saving Money: Understanding the Basics
Many Americans tend to spend more money than they save. There are a few basic steps to take if you want to start to save your money. We recommend creating a budget and sticking to it, paying yourself first, saving wisely by finding the best interest rates, and setting financial goals to keep yourself on track.
How to Effectively Budget
The best way to save money is to create and stick to a budget. We recommend getting a receipt for everything you purchase throughout the month. On the first day of the new month, organize your receipts into categories such as groceries, personal care, and restaurants. You will then be able to see where your money going and create a budget based on what you want to spend on food, shopping, and more.
Top 20 Money Saving Tips
Looking for more money tips? Here are some of the best ways to save money:
- Say goodbye to debt. Pay off your debt with the debt snowball method, from smallest to largest. Once you have paid off your debt, you can use your income to make progress towards your savings goals.
- Cut down on grocery spending. Plan out your meals each week and look at what you have in your pantry before heading to the store. You can also try online grocery pickup or delivery to avoid impulse purchases and save money.
- Cancel automatic subscriptions. Cancel any subscriptions that you don’t use regularly. Turn off auto-renew when you make a purchase.
- Buy generic. Stop buying brand-name products. Generic products tend to cost far less and work just as well.
- Cut your cable TV subscription. Cut the cord and use alternatives to cable, like streaming services, to save hundreds of dollars per year.
- Save money automatically. Set up your bank account to automatically transfer money from your checking account to your savings account every month.
- Spend extra income wisely. Whenever you receive unexpected income, such as a work bonus, tax refund, or inheritance, spend it wisely. Use that income to pay off student loans or credit card debt or to build up your emergency fund.
- Decrease your energy costs. Save money on your electric bill by taking shorter showers, fixing leaky pipes, washing your clothing in cold tap water, and installing LED light bulbs and dimmer switches.
- Unsubscribe from marketing emails. Unsubscribe from emails, especially if you can’t resist shopping when you see a special offer or deal.
- Check your insurance rates. People tend to save an average of $700 when they have an Endorsed Local Provider (ELP) check their insurance rates for them.
- Pack lunch and eat at home. You can save a lot of money by packing a lunch instead of buying lunch a few times per week. The same goes for eating dinner at home instead of out.
- Pay for things in cash. People tend to spend less money when they pay for things in cash rather than using a credit card.
- Take advantage of your retirement savings plan. If your employer offers a 401(k) match, take full advantage of it.
- Lower your cell phone bill. Get rid of extras like phone insurance, warranties, and expensive data plans.
- Try a no-spend week or month. Challenge yourself not to buy any nonessential items for a week or even a month.
- DIY everything. If you want a new backsplash, light fixture, or bench, try doing it yourself using YouTube tutorials.
- Drink your coffee at home. Save money by drinking your coffee at home instead of shelling out the money for a fancy latte.
- Use the library. Check your library for books, audiobooks, and even movies.
- Try a staycation instead of a traditional vacation. Be a tourist in your own city.
- Sell anything that doesn’t bring you joy. Declutter the items in your home that don’t bring you joy and sell them to make some easy cash.
Tools to Help You Save
Still need help learning how to save your money? Check out our Financial Literacy Program Resource Page where you can learn more about how to budget and save.
The Importance of Saving
Budgeting and saving your money is all about being intentional. Keep in mind that it doesn’t really matter how much money you make. It matters much more how you spend and save the money that you do make.
Still want to learn more about the best way to save money? Contact Tower Loan to learn more about how to budget and save money. We can also provide you with insight and advice regarding online loans.