Finding creative ways to save money can make a big difference in reaching your financial goals. With recent historical inflation, shrinkflation, and the continued rise in consumer prices, saving effectively requires more than just forgoing luxuries; it also requires creativity, planning, and smart decision-making.
1. Reevaluate your subscription
Subscription services have become the quiet budget destroyers of our time. From streaming platforms and fitness apps to monthly meal kits and online publications, these recurring fees can add up quickly. Often, we sign up for services with great intentions, only to abandon them after a few months.
Start by taking a list of all your current subscriptions and assess whether you’re getting the most out of each service. Cancel or pause any subscriptions you don’t use regularly, or use an app like Rocket Money to view and manage your subscriptions in one place.
Pro Tip: Many subscription services offer discounts or extended free trials if you try to cancel, so you might end up saving even more. If you’re nervous about losing access to something, set a calendar reminder to check in with yourself in 30 days. You might find that you didn’t miss it as much as you thought you would.
2. Buy second-hand or get second-hand items for free
In 2024, thrifting and sustainability are closely linked trends. Shopping second-hand is more accessible than ever, with online platforms like Poshmark, Depop, and ThredUp offering a wide selection of gently used clothing and home goods. Not only does this approach allow you to find unique, high-quality products at a fraction of the retail price, it also promotes environmentally friendly consumer habits by reducing waste and lowering greenhouse gas emissions.
Did you know? According to the National Resources Defense Council, manufacturing new clothes and shoes produces between 4 and 8.6 percent of greenhouse gas emissions, more than the entire aviation industry.
Buying secondhand can also alleviate a lot of financial strain: Buying secondhand clothes, for example, can save you about $900 a year. Big-ticket items like furniture, appliances, and even home improvement tools can be found in good condition at local consignment stores or online marketplaces like Craigslist and Facebook Marketplace.
The group that bought nothing
If you need any products, see if you can get them for free through your local Buy Nothing group. You can join such groups on social media or by downloading the Buy Nothing smartphone app. Members of these groups offer each other free items they don’t need, such as home décor, cookware, tools, clothing, furniture, and even store coupons.
“The concept of Buy Nothing is to give away something you no longer need or use so that someone else can reuse or repurpose it,” says Jana Dykstra, administrator of the Chicago-area Buy Nothing Facebook group. “We’re not donating it to someone else, it’s a gift for them to have.”
Dykstra has seen group members donate everything from hot tubs and swings to handbags and wallets; she’s also donated metal shelving and Chicago Bulls merchandise. “I think it depends on the demographics and interests of the community,” she says.
3. Automate your savings
One of the most effective, hassle-free and creative ways to save money is to automate your savings process. Automation takes the pressure off making a conscious decision to save and ensures that you set aside a portion of your income each month. It’s easy to set up automatic transfers from your checking account to a savings or investment account.
Whether it’s $20 or $200, regularly transferring money to a savings account can add up to a large amount over time. Plus, banks like Ally Bank and Bank of America offer special savings accounts with features, like round-up programs, designed to encourage automatic savings. Round-up programs round up your purchases to the nearest dollar and deposit the extra cents into your savings account.
These small, recurring donations can help you build an emergency fund or create a financial safety net for future goals, from vacations to buying a home.
4. Use cashback and rewards apps
In 2024, it’s easier than ever to save money with technology. Cashback apps like Upside, Rakuten, Ibotta, and Honey allow you to earn money on purchases you’re already making. With a quick tap, you can find deals, activate cashback offers, and search for coupon codes before buying online. The savings may seem small, but they add up over time. That money can be put directly into savings or reinvested elsewhere.
Don’t forget to check if your credit card offers cash back rewards. Cards like the Chase Freedom Flex offer rotating cash back categories and rewards on groceries, travel, and dining. Combining credit card rewards with a cash back app can significantly increase your overall savings. Some apps even let you stack savings from multiple rewards.
5. Refinance your loans to get a better interest rate
Refinancing is a smart way to lower your monthly payments on a mortgage, student loan, or car loan by securing a lower interest rate. Interest rates are always fluctuating, so 2024 could be a great opportunity to reduce the cost of your debt. Refinancing to a lower interest rate allows you to put more of your payment toward the principal, which means you pay off your loan faster and spend less money on interest over time.
When refinancing, always consider the associated fees and closing costs. According to Freddie Mac, fees and closing costs for refinancing a mortgage typically run around $5,000, depending on the loan amount and where you live. Shop around among different lenders to ensure you get the best rate. Even a small decrease in interest rates can add up to big savings in the long run.
6. Meal preparation and batch cooking
Food costs are a big part of most people’s budgets, and cutting back on eating out is an easy way to save money. According to a Statista survey, 42% of people who eat out spend an average of $11-20 each time they eat out. Planning your meals and cooking them at home instead of relying on takeout or restaurant meals can significantly reduce costs.
Start by creating a weekly meal plan and shopping list based on sales and coupons at your local grocery stores. Preparing large quantities of meals that you can cook in bulk and freeze or refrigerate will not only save you time on busy days, but it will also help you avoid the temptation to make expensive last-minute food decisions.
Plus, being mindful of what’s already in your pantry and fridge can help reduce food waste: According to the USDA, apps like Too Good To Go allow users to purchase surplus food at discounted prices from restaurants and grocery stores, not only saving money but also reducing 30 to 40 percent of the food supply that would normally be wasted.
7. Tackle a DIY project
The DIY movement is thriving more than ever, with countless online resources to help you tackle projects at home for much less than it would cost to hire a professional. Whether it’s home repairs, car maintenance, or a creative hobby, doing the work yourself can not only save you significant amounts of money (sometimes thousands of dollars!), but it can also help you learn a new skill.
For example, painting your house yourself can save you between $500 and $5,000. Simple projects like painting, landscaping and sewing can also cut costs significantly while personalising your space and wardrobe. If you want to go a step further, learning basic car care or home repair skills on platforms like YouTube can help you carry out small repairs yourself, reducing costs in the long run.
8. Go green and save money on energy bills
You can reduce your monthly energy bills by making energy-saving home improvements like installing a programmable thermostat, waterproofing your doors and windows, and switching to energy-efficient appliances. Many energy companies offer rebates and tax incentives for green home improvements, further increasing your savings.
Simple habits like turning off lights when not in use, using energy-efficient light bulbs, and washing clothes in cold water also add up over time. According to the U.S. Department of Energy, turning down the thermostat 7 to 10 degrees Fahrenheit for eight hours a day can save 10 percent on your annual energy bill. The key is to make energy efficiency a daily habit.
9. Use your credit card points and miles wisely
Getting the most out of your credit card rewards takes some strategy, but it can be game-changing when done right. Many credit cards, like the Capital One Venture Rewards Credit Card, offer rewards points for everyday purchases like travel, dining, and even groceries. Before making a big purchase, find out which card will give you the highest rewards rate, and don’t be afraid to look for credit cards with sign-up bonuses that give you extra points or miles just for joining.
Please note: Credit card rewards are only useful if you can pay off your balance in full each month and the rewards outweigh the annual fee. Using rewards wisely is key to making them work to your advantage, since interest charges can negate any points or cash back you may have.
10. Organize and sell what you don’t need
One of the easiest ways to save more money is to declutter your home and sell the things you no longer need. Clothes that no longer fit, gadgets that no longer fit, furniture you no longer use – selling them on platforms like eBay, Facebook Marketplace, or at a local garage sale can help you make some quick cash while creating a more organized living space.
Marie Kondo’s method, which asks you to ask yourself if each item in your home truly brings you joy, is a great way to determine what you’re ready to let go of. This decluttering process will not only save you money, but it will also help you create a more peaceful and functional environment.
11. Negotiate your invoice
Many rates for phone, cable, internet, insurance, etc. are negotiable. Because these industries are so competitive, companies often offer discounts, bundles, and unadvertised promotions to retain customers. All you have to do is ask.
Call your service provider and inquire about lower rates, better deals, or promotional discounts. Simply letting them know you’re considering switching to a competitor could unlock significant savings. If negotiating isn’t your forte, services like Trim and BillCutterz will negotiate on your behalf in exchange for a small percentage of the savings.
12. Find the best bank
Whether you’re saving for an emergency, buying a new car, or saving for a long-awaited trip, getting the best yield can help you reach your goals faster. Savings accounts at online banks usually offer the highest yields because these banks are offering better rates to lure customers away from traditional banks. For example, it’s not uncommon these days to see yields on online savings accounts approaching 5% or even higher, while savings accounts at brick-and-mortar banks offer an annual percentage yield (APY) of just 0.01%.
“When you move your savings from a bank that pays 0.1% to an online bank that pays 2%, you can increase your interest income 20-fold. You don’t have to take on any risk because you still have the protection of federal deposit insurance,” says Greg McBride, CFA, chief financial analyst at Bankrate. “This is the only free lunch in the financial world.”
13. Improve your credit score
A low credit score can make you pay more for everything from credit cards to homeowners insurance. In fact, improving your credit score can save you thousands of dollars in the long run. Regularly check your Experian, Equifax, and TransUnion credit reports for errors or signs of fraud. If there are errors, you can dispute them with the respective credit reporting agencies.
Additional steps you can take to improve your credit score include making regular payments and lowering your credit utilization ratio. It also helps to not apply for new accounts too frequently, as this can result in hard queries on your credit report that temporarily lower your score.
14. Unsubscribe from Retailer Communications
Retailers frequently send emails, texts, and app notifications about their latest sales and discounts, which can create a sense of urgency to buy now to avoid missing out on a great deal. By opting out of receiving these types of promotional messages, you can avoid impulse buys and post-purchase regret.
Ways to stop receiving these notifications include unsubscribing from emails and unfollowing the retailer or brand’s social media accounts, says Bola Sokunbi, author, founder and CEO of Clever Girl Finance. “You can also go a step further and block these email addresses on your email account or block these accounts from appearing in your social feeds,” she says.
Making such changes, Sokunbi says, can lead to less spending, better emotional balance and a greater likelihood of sticking to a budget.
15. Get creative with holiday gifts
If you’re stressed out over all the gifts you have to buy during the holidays, your friends and family probably feel the same way. Grab bags or Secret Santa gift exchanges can help cut down on the number of gifts everyone has to buy. Both options allow holiday party-goers to buy just one gift each.
Another way to keep costs down while still giving something valuable is to choose creative gifts that aren’t store-bought. “When people think of DIY gifts, they often think of disappointing things like handmade cards or tacky knit sweaters,” says Howard Dvorkin, CPA, chairman of Debt.com. “But sometimes DIY can be more valuable than a store-bought present, like a homemade meal or a clean house or car.”
Conclusion
Saving money doesn’t have to feel restrictive. With the right strategies, you can cut back on unnecessary expenses and increase financial security — all while enjoying life. From reducing food waste and buying second-hand to embracing technology with cash-back apps and automatic savings, small actions can add up to big results over time.
Incorporate these unique money saving tips into your daily life to get a sense of your financial future and watch your savings grow as you get closer to reaching your goals. Take a closer look at your finances with this handy calculator.
