It would be nice to earn more money and be able to do the things we always put on hold. But let’s face it, that’s not always feasible, at least in the short term. What we can do instead is learn to manage our money more efficiently and find ways to save money whilst enjoying the same lifestyle. So, we’ve put together a list of 20 ideas to help you start saving money right now. Check out your spending patterns and select the best ideas for you.
As Florence Scovel Shinn puts it, “You are rich indeed when you are content and happy with what you have.” And what you have is a limited amount of money every month. That’s your budget and your starting point in managing your money. However, don’t spend it as if taking money from a bottomless bag. Create a more granular budget with defined spending for different categories, such as bills and utilities, transportation, food, entertainment, and so on. Assign an amount or a percentage for each category and stick to it throughout the month. Give yourself a couple of months to adapt to this new method of budget planning and adjust categories and numbers.
For example, you can start with the popular 50/30/20 method, which suggests allocating 50% of your income to needs, 30% to wants, and 20% to savings or debt repayment. However, if your lifestyle requires different percentages, adjust wholeheartedly. You need to find a method that works for you and is sustainable in the long term.
What’s important about the 50/30/20 method is that it highlights the need to have specific savings goals, which is one of the best ideas for saving money. Just manifest savings by defining very specific goals, intermediary milestones, and ways to motivate yourself to do the work. Be SMART when defining goals. Aim for specific, manageable, sustainable, and achievable goals. Track your progress regularly and be kind but firm with yourself when you get behind schedule.
For example, you may want to save enough money to buy a house. Specify a deadline, the total amount of money you need, and how much you must save each month. Set up a savings account, check out interest offers at different banks (and additional costs), and try to automate the savings process as much as possible.
You would most likely be surprised by where your money went in the past month or year. People spend huge amounts of money on things they don’t remember buying, subscriptions they don’t use or need, or taxing habits. Thus, one of the best ways to save money is to track your spending and have clear data on hand. Review your credit card bill or analyze the statistics in your online banking app. Then, make a point of avoiding unnecessary purchases, improving your buying habits, and resisting temptations. Review your bank statements periodically (e.g., monthly) and adjust when needed.
Most banks offer automatic transfers to help you save money without having to remember to do it on purpose. You can set up a monthly transfer from your current account to a savings account, or use a Round-Up tool (i.e., round each payment and send the difference to a savings account). You can also decide to save a certain percentage of your income in a retirement or emergency fund, or use it to pay debts and bills automatically. Putting savings and necessary payments first ensures you are more financially responsible and spend your money more wisely.
Speaking of automatic transfers, do you know how much money you spend on subscriptions each month? That’s not a rhetorical question. Often, we spend more money than we think on subscriptions we rarely use (or not at all), such as gym subscriptions, software subscriptions, club memberships, streaming services, file storage solutions, and so on. Canceling the unnecessary ones can save you a lot of money.
For instance, you can cancel the gym subscription during the summer months and replace the treadmill or indoor bike with outdoor running and biking. You can cancel the streaming service you used to watch the Winter Olympics until the next edition. Instead of paying for more iCloud space, you can declutter your devices, make backups, and delete unimportant or outdated files.
We need to eat, but do we really need to spend so much money on food? Take a closer look at your fridge and pantry and evaluate how much food goes to waste, how much takeout you order, and how healthy your diet is. Meal planning refers to planning your meals for a week in advance, shopping only for the planned meals (no stocking), and cooking at home. It helps you reduce waste and save money by only buying the ingredients you need, cooking in larger batches, and avoiding takeout and snacking. That’s a healthy way to save money.
Planning meals and cooking at home may help you save money, but only if you pair it with avoiding eating out. And we don’t mean just fancy restaurant dinners. It’s those small habits that add up: coffees to go, snacking on pastries, buying water instead of carrying a reusable bottle, and indulging in fast food every time you go shopping. Please review one monthly bank statement to see how much you spend on eating out.
Sales, discounts, coupons, vouchers, tell them anyway you like, but use them when they come your way. There are endless ways of saving money like this. Even though you won’t save big amounts, over time, the sums add up. A few examples of discounts that may be right up your alley include cash-back apps, promotional codes, digital coupons, Black Friday deals, and seasonal deals.
For example, you may want to buy skis in the summer and a new bike in the winter. You may want to wait until the next Black Friday to buy electronics. Or you may wait for the January sales to buy new clothes.
Many of our purchases are made on impulse because we got excited by a commercial or a friend’s success story, or we are in a dark place and need cheering up. High emotions make us more willing to spend money. In addition, it is fairly easy to purchase on impulse from the comfort of your home. So, avoiding impulse purchases may save you a lot of money, help you declutter your home, and improve your lifestyle.
How to avoid buying on impulse? Well, it’s not easy, but it’s possible. Try to go to the root of your emotional buying habits. What triggers the purchase? You can also try methods such as the:
Although energy and utility bills fall under the need category, we can reduce costs a bit. It’s better for our budget and for the environment at the same time. All you have to do is turn off the lights when not needed, replace regular bulbs with energy-efficient ones, buy energy-efficient appliances, turn down the heating by 1-2 degrees, use the AC as little as possible, and turn the tap off when not in use.
Consider energy-saving options, such as thermostats, smart appliances, and apps that monitor consumption.
Commercials make us believe their products are the best and that we can’t live without them. However, in reality, we can live very well with generic-brand products, store-brand products, and locally sourced seasonal fruits and vegetables. These products offer the same benefits as fancy brand products at a more affordable price. You may also consider buying in bulk when you need larger quantities, and compare unit prices rather than product prices to get better deals.
Apply this method to products you don’t have a deep attachment to, such as cleaning supplies, napkins and toilet paper, groceries, and other consumables.
Although not directly a way to save money, paying off your debts will benefit your budget in the long run. Not only will you get to keep more of your income, but you’ll also avoid accumulating interest and other fees. Create automatic payments towards your debts to ensure you don’t forget about them and incorporate paying off debts in your monthly budget. Don’t stress about how much you can pay each month. Pay as much as you can because little by little it will add up.
A very efficient way to avoid unnecessary purchases is to try a no-spend challenge. This method applies to the 30% ‘wants’ in your budget. How nice it would be to save more money simply by refusing unplanned expenses? You can start with a one-day non-spend challenge and grow from there to three days, one week, and even one month. How proud would you be of yourself to accomplish one week without unplanned expenses? Of course, there will be emergency expenses you can’t avoid, but the challenge is not about them. It’s about impulse shopping, emotional shopping, and cravings you can definitely avoid.
Often, insurances fall into the need category because you are either obliged by law (e.g., car insurance) or better off with it (e.g., private health insurance, travel insurance, etc.). However, that doesn’t mean you should pay the first price and become a permanent contributor. Compare insurance rates and shop around for a trustworthy provider that offers the exact insurance you need. For example, if you don’t use your car every day, you can opt for a usage-based car insurance, which will reduce your costs.
Like insurance, communication plans come in many forms and at various costs. How much you pay for your phone or internet bill is not set in stone. You can switch providers, request a customized offer, and move from a more expensive plan to a cheaper one. Read the contract carefully and don’t go for the included services you don’t need. For example, if you don’t travel often, you don’t need a phone plan that covers international calls.
Entertainment is one category that drains our budgets. Everyone wants to feel good and live fully. We don’t say you should give up opera tickets and festival passes, but there are plenty of ways to save money on entertainment.
For instance, you can borrow books from your local library instead of buying them. Or you can start reading eBooks instead of regular books because they are more affordable. Attend local fairs and film festivals with free access, use one streaming service at a time, enjoy your hobbies on a limited budget, take one-day trips instead of staying overnight, and spend time with your friends at home instead of going out.
Bringing your own food and snacks can significantly reduce the cost of eating out. There are many situations in which you can take this approach, such as bringing packed lunches to work instead of ordering takeout or eating out, taking a picnic basket or sandwiches when going for long walks or hikes, bringing coffee and water in portable mugs wherever you go, and organizing bring-your-own snacks nights with your friends.
Avoid high-priced foods and drinks by always bringing your own snacks to work or entertainment activities. On top of saving money, you will get better at keeping a healthy diet and sustainable lifestyle.
Open a savings account at a good bank and choose high-yield options. High-yield accounts have higher interest rates than other types of accounts and help you grow your bank balance faster. At the same time, they have more restrictions, such as longer periods, which encourage you to keep the money for emergency or later use. Make sure you choose a trustworthy provider and match the account’s benefits with your own needs.
When you need expensive items on a budget, second-hand shops may be the best solution. It may be the prom dress you will only wear once, furniture, the expensive telephoto lens you’ve always wanted, sports gear you can’t afford, or a car. The secondhand market is broad. Look for specialized shops or websites that guarantee product quality and learn how to recognize a good-quality item yourself. In return, you can sell your own objects and recuperate some of the costs.
A lot of money goes on transportation these days. Whether it’s the cost of the daily commute, high costs of long-distance travel, petrol prices, and ticket prices, transportation costs take a toll on our budget. Luckily, there are ways to save money on transportation.
Traveling far away on your own? Join a carpool service and share the ride and the costs. Commuting daily? Look for affordable public transportation passes, ride-share options, or remote work. You can also try to combine errands to save on petrol, share the school run with other parents, share the ride to the office with your colleagues, choose public transport over driving, and bike to work instead of taking the bus.
We hope these ideas will help you save money in both the short term and the long run. But, if you still struggle to find the best option, here are some other notable ideas:
Saving money should be a habit, not a one-time-only action. Try to include it in your daily routine, making the most of the available tools and tracking your expenses accordingly. In time, it will become second nature, and you won’t have any trouble growing your savings account.
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