Thinking of ways to save money can feel overwhelming, especially when your income barely keeps up with your expenses. More than one in three workers (34%) live paycheck to paycheck with little or no money left for savings after paying their monthly expenses, according to Bankrate research. is reported.
Not having enough savings can increase stress during emergencies, rely on credit cards for unexpected bills, and make it difficult to achieve long-term financial goals such as homeownership or retirement. there is. Most financial experts recommend saving at least three months’ worth of expenses to weather financial hardships, such as job loss or large medical debts.
Saving this amount is difficult, but not impossible. We’ve put together 14 money-saving tips to help you spend less and grow your bank account.
1. Review your spending habits
If you want to decide how to save money, you first need to find ways to spend less. Many bank statements include categorized expense reports. These allow you to see where your money is being spent and identify opportunities to reduce costs. If you’re married or living with a partner, sharing this review process can help you reduce your expenses and increase your savings.
2. Automate your savings
Setting up automatic transfers from your checking account to your savings account every payday is a surefire way to grow your money. To put your money toward savings, set up a budget to ensure all your expenses are accounted for.
Creating a budget helps you plan your spending and savings by keeping a close eye on where your money goes and goes each month. Budgeting and savings apps can track your spending, issue overspending alerts, and automate your savings.
If you’re new to budgeting, there are a few things to keep in mind.
“First, understand where you are,” says Melissa Almuttar, MBA and director of engagement and services at H&R Block. “Tracking your income and expenses and categorizing them into wants and needs gives you a baseline. By tiering your goals, whether it’s savings, regular expenses, or paying down debt, you can see what adjustments to make. There are frameworks such as the 50/30/20 split of needs/wants/savings or the self-prioritizing method, but choosing a method starts with your situation and goals. The most important thing is to stick with it and see if you can build consistency.”
3. Use cashback apps
Cashback apps like Rakuten, Ibotta, Upside, and Dosh do more than just save you money. It also helps you earn rewards and rebates on various purchases. Earn cashback on online shopping, grocery, travel, dining, and gas purchases.
These apps allow you to earn a percentage of cash back on purchases you make using the app. You typically receive 1 to 10 percent of the purchase price.
Depending on the app, there may be several ways you can earn cashback. For example, you can earn cash back by shopping on certain websites, uploading your purchase receipt, or scanning product barcodes in stores.
Rewards accumulate in your account and can be redeemed once a minimum threshold is reached. You can receive cash through PayPal, gift cards, or direct deposit.
4. Reconsider your mobile phone provider
When was the last time you took a closer look at your cell phone plan? The proliferation of service providers increases competition and often drives down prices.
Companies like Mint Mobile, Ting Mobile, and Visible may offer plans comparable to the biggest carriers, but with lower monthly fees. Research and compare prices to find the best deal for your mobile service needs. If you spend most of your time at home, connecting to a Wi-Fi network can eliminate the need for expensive super-high-capacity data plans.
5. Turn off notifications that try to make you spend money
Smartphones are powerful tools to help you save money, but they can also be a source of great temptation to overspend. A promotional email or app notification (such as one announcing a big deal) can persuade you to buy a product you might have otherwise skipped. Consider unsubscribing from those lists and disabling notifications.
6. Reduce your utility bills or prevent them from increasing.
There are some simple steps you can take to reduce your home energy bills. For example, according to the U.S. Department of Energy, the average household can save about $225 each year by switching to LED lighting.
You can also save on heating and cooling costs by sealing leaks around doors, windows, and air ducts. You can also install a smart thermostat to upgrade your home’s insulation. You can potentially reduce your water bill by installing smart or low-flow showerheads, fixing all water leaks (even small droplets), and watering your lawn before sunrise.
You may also be eligible for energy cost assistance through the federal government’s Low Income Home Energy Assistance Program (LIHEAP). LIHEAP can help you pay your utility bills, weatherize your home, make minor energy-related home repairs, and more.
7. Estimate entertainment expenses
Instead of paying high prices for 400 cable TV channels, consider more affordable streaming services like Sling, Hulu, and Fubo. Amazon Prime members have access to the company’s vast library of shows and movies.
Amazon Prime membership also comes with the ability to listen to millions of songs and create playlists. This saves you money on another streaming music service like Spotify or Apple Music.
8. Take advantage of local attractions for free
With a little research, you can find fun and affordable local attractions and activities. For example, some museums and galleries offer free admission on certain days of the week or month. Libraries may offer passes to zoos and museums on a first-come, first-served basis.
Some banks may even offer free access to attractions. For example, Bank of America’s Museums on Us program gives the bank’s debit and credit cardholders free access to more than 225 cultural institutions across the United States.
9. Become a strategic grocery shopper.
Although we should continue to buy groceries despite high prices, we can make a concerted effort to avoid throwing away unused food. In total, American households waste $473 billion in food annually, or 38 percent of all food in the United States, according to the nonprofit organization Feeding America.
When creating your shopping list, think about what you threw away last time and how you can avoid doing it again. According to this study, people who make a shopping list before going to the store usually throw away less food, so take more time to plan your upcoming meals.
10. Breaking with brand names
Speaking of groceries, consider whether you really need to pay for expensive branded foods. Comparing ingredients and labels on things like noodles, cereals, and spices may reveal that common alternatives are just as nutritious and high-quality as premium products.
The same concept applies to non-food products such as paper products, hand soap, and laundry detergent. When purchasing household products from such brands, try to find more affordable alternatives. If you are not satisfied with the lower priced alternative, you can always return to your original selection.
11. Consider other banking options
If you pay service fees on your checking or savings account, you may be able to reduce those costs. For example, online-only institutions like Ally Bank and Discover don’t charge monthly service fees. Many other bank accounts charge monthly fees, but you may be able to easily avoid them by setting a low minimum balance or receiving your paycheck via direct deposit.
Additionally, online banks often pay the highest interest rates on high-yield savings accounts, money market accounts, and certificates of deposit (CDs).
12. Compare car insurance premiums
If you have a track record of safe driving, you may want to look for a good insurance company that will reward you more for that behavior. Compare the premiums you currently pay with other auto insurance quotes to see how much you can save on the same coverage.
If you don’t spend much time driving, you may be able to save money by purchasing usage-based insurance, which allows you to adjust your coverage based on how much you actually use your car.
13. Use coupons and promotional codes
Coupons may sound old-fashioned, but finding great deals doesn’t necessarily mean cutting out a section of the Sunday newspaper. When shopping online, if you see a “promo code” box on a website’s checkout page, take a few minutes to search for a coupon code.
Browser extensions like PayPal Honey and Coupert automatically search for online coupons while you shop. Capital One Shopping is another tool that automatically searches for online deals and is available to everyone, not just Capital One customers. It works by finding coupon codes, lowest prices, and offers from over 30,000 online retailers.
14. Try a spending freeze
Try taking control of your finances by embarking on a spending freeze, which cuts all unnecessary expenses for a period of time. This could give you an idea of how much you’re spending on non-essentials, like trips to coffee shops. Add the money you have left over at the end of the month to savings or use it to pay off debt.
next step
If you’re serious about achieving your financial goals, these 14 money-saving tips are a good starting point. Once you understand the basics of how to save money, you may want to consider taking your financial education to the next level.
