Whether you're aiming for a solid emergency fund or a secure retirement, achieving your financial goals starts with a smart approach to saving. Fortunately, saving money can be easier than you may think. Put aside just $13.70 per day, and at the end of the year you'll have $5,000; double that to $27.39 daily and you'll have $10,000 by year-end—and that doesn't include the interest you may earn.
You can save money by making a budget, automating savings, reducing discretionary spending and seeking discounts. Here are 26 ways to save money.
1. Set a Goal
Having a goal to work toward will help you determine how much to save—and help you stay motivated to stick to your savings plan. For example, you might want to save up for a vacation or a down payment on a new car. Maybe you'd like to build an emergency fund so you can stop relying on credit cards for unexpected expenses. Figure out when you want to achieve your goal and how much you'll need to save each month to do so.
2. Track Expenses
Tracking your spending for a month or so can be eye-opening and may reveal easy ways to save. You can track your expenses using paper and pencil, a spreadsheet on your computer or the note-taking app on your phone.
Some banks offer expense-tracking apps. You can also download an expense tracker app such as Dollarbird, Fudget or GoodBudget. Many expense-tracking apps include budgeting features too.
3. Make a Budget
Following a budget helps ensure your monthly spending doesn't exceed your income. To make a budget, determine your monthly income after taxes, as well as your monthly fixed and variable expenses. Also include things like property taxes, car maintenance, holiday gifts and other quarterly or annual expenses.
There are plenty of ways to budget. The 50/30/20 budgeting method is a popular option in which 50% of your after-tax income goes to necessities, 30% goes to discretionary spending and 20% goes to savings or paying off debt. If you want to account for every dollar, you can try zero-based budgeting. You can also consider budgeting apps such as PocketGuard, You Need a Budget or HoneyDue to help you stick to your budget.
Learn more >> Types of Budget Plans to Know About
4. Automate Savings
Simplify savings by setting up automatic transfers into your savings account each time you get paid. You can typically do this through your employer or by using your bank's mobile app or website. You may even have the option to split your savings into multiple savings accounts—for example, one account for your emergency fund and another for your upcoming honeymoon.
Grow your savings faster by choosing a high-yield savings account, which typically offers interest earnings significantly higher than those of standard savings accounts.
Find High-Yield Savings Accounts
5. Cancel Unused Subscriptions
Check your bank and credit card statements each month for recurring subscriptions or memberships, such as streaming services, gym memberships, newspapers or apps. Save money by canceling those you no longer use.
Learn more >> How to Manage Your Monthly Subscriptions
6. Buy Generic Brands
Opting for generic versions of groceries, household items and prescription and non-prescription medications can save you a lot of money. Ask your doctor to prescribe generic versions of your medications whenever possible. Compare ingredients of brand-name and generic over-the-counter medications.
7. Look for Discounts and Coupons
From restaurants and retailers to supermarkets, gas stations and airlines, just about every business offers rewards programs these days. Joining, which typically involves downloading an app, can give you access to discounts and deals. You can also find discounts by searching online for digital coupon codes before making a purchase. Don't buy just because there's a discount, though. Shop intentionally, seeking discounts only for things you plan to buy anyway.
8. Join a Buy Nothing Group
"Buy nothing" groups can help you save money and prevent waste. Join a group such as Buy Nothing or The Freecycle Network to post items you no longer need, search for items neighbors are giving away or request something you want. Giveaways can range from dog food and baby clothes to sporting goods and furniture. You can also find buy nothing groups on social media.
9. Shut Down Impulse Spending
When you're bombarded with marketing messages all day long, your willpower can easily weaken. To nip impulsive shopping in the bud, unsubscribe from marketing emails and text alerts; unfollow brands on social media; stop reading blogs or publications that spur you to spend and delete shopping apps from your phone.
Learn more >> How to Stop Impulse Spending
10. Pause Before You Purchase
Making it more difficult to make a purchase can help you stick to a budget. Delete your payment card information from shopping websites so you can't just click to buy. Set a rule that you must wait a certain amount of time, such as 72 hours or one week, before making a discretionary purchase. In most cases, once your time limit expires, you'll find you don't want the item anymore.
11. Cut Utility Usage
Look for ways to lower your water, gas and electricity bills. For example, take shorter showers, install water-saving plumbing fixtures or cut back on watering your lawn. Turn off lights and electronics when not in use. In summer, cool your home with ceiling fans and room-darkening curtains and set your thermostat at 78 degrees to minimize air conditioning use. In cold weather, seal cracks to eliminate drafts; set your thermostat at 68 degrees and dress warmly.
12. Try a Savings Challenge
Make a game of saving money by taking a savings challenge. Here are a few to try:
- 52-week challenge: Put $1 in savings the first week, $2 the second week, $3 the third week and so on.
- Round-up challenge: Round up every purchase to the nearest dollar and put the difference in savings. For instance, if you buy something for $25.15, round up to $26 and put 85 cents in savings. Some banks or credit unions let you automatically round up purchases made with your debit card and deposit the savings into your savings account.
- No-spend challenge: Eliminate all nonessential spending for a certain time—say, one weekend or one month. You can customize your challenge to cut back on "problem spending" areas, such as eating out or buying clothes.
13. Pay Down Debt
With the average credit card annual percentage rate (APR) at 22.76% as of May 2024, according to the Federal Deposit Insurance Corp. (FDIC), carrying a balance on your credit card can cost you hundreds of dollars of interest per month. Make a plan to pay down high-interest debt so you can put that money toward savings instead. Depending on your budget and needs, consider the debt avalanche or debt snowball strategies.
Learn more >> How to Get Out of Debt
14. Consolidate Debt
Consolidating high-interest debt can help make your payments more manageable so you can pay off debt faster and save on interest. Look for a debt consolidation loan at a lower interest rate than your outstanding debt and use the loan proceeds to pay off your balances. As of May 2024, the average APR on a personal loan was 11.92%—significantly lower than the average credit card APR.
You can also consolidate debt with a balance transfer credit card that offers an introductory 0% APR. Transfer your outstanding balances to the card and they won't accrue interest until the promotional 0% APR ends. This can give you time to pay off the balance without incurring additional interest.
Learn more >> How to Consolidate Debt
15. Reduce Restaurant Spending
Eating at restaurants, buying lunch at work or frequently ordering takeout takes a big bite out of your budget. Instead, save money by cooking and eating at home. If you can't bear to stop dining out altogether, reserve restaurant meals for special occasions. You can also trim your restaurant bill by going for lunch or happy hour, drinking water instead of pricey beverages or ordering appetizers instead of a main course.
16. Learn to DIY
Hiring experts to hem your pants, cut your kid's hair, change your car's oil or fix a leaky faucet gets expensive fast. Cut costs by finding a how-to video or product manual online and learning how to do it yourself.
If you prefer hands-on instruction, check offerings from local home improvement stores, garden centers, fabric stores or city recreation departments. For example, many home improvement retailers hold free workshops on topics like painting walls or installing tile.
17. Cut Your Cable, Phone and Internet Bills
Save on cable, phone and internet services by exploring alternatives such as switching your plan to a lower-priced option. You might be able to bundle services or downgrade your plan, for example. Cellular service providers often offer discounts if you choose a family and friends plan. You might save on cable TV by cutting the cord and changing to streaming, or reduce internet prices by settling for lower speeds.
When in doubt, contact your provider and see what they can do to lower your bill, or sign up for Experian BillFixer™ and let someone else do the hard work for you.
18. Use a Rewards Credit Card
Cash back credit cards can help you get cash back for purchases you'd make anyway. To maximize savings without overspending, look for a credit card that rewards you for essential purchases, such as groceries or gasoline. To avoid incurring interest that would probably surpass any rewards you earn, always pay the balance in full before your credit card's grace period is up.
19. Shop Around for Insurance Savings
It can be tempting to "set and forget" your auto or homeowners insurance—but that could be a costly mistake. Shop for insurance once a year or so, and you may find equivalent or better coverage at a lower cost. Rate-shop fast by using an insurance comparison site like Experian's, which delivers quotes from over 40 top car insurance companies in minutes.
20. Find Inexpensive Ways to Treat Yourself
Avoid budget burnout by giving yourself small rewards for sticking to your savings plan. Put 50 cents or $1 in a jar every day you follow your budget and use it to treat yourself at the end of the month. Look for lower-cost versions of your favorite activities. Instead of a $40 manicure, for instance, buy a $10 bottle of polish and do your nails at home. If you've eliminated daily lattes, let yourself savor one at the end of the month.
21. Buddy Up
Holding yourself accountable can help you stick to your budget. Ask a friend to join you as an accountability partner and keep you on track. You can also use an accountability app like BeeMinder or Fabulous to track and support healthy savings habits. Look for social media influencers whose personal financial advice inspires you—just be sure to vet their advice before making drastic changes.
22. Earn More Money
Reach your savings goals faster by making more money. Request extra hours at work, apply for a promotion or better-paying job, or ask your boss for a raise. If your schedule allows, consider getting a part-time job or starting a side hustle. There are plenty of options, including tutoring, childcare, walking dogs, delivering food, ride-share driving, selling things online and more.
23. Cut Your Transportation Costs
Can you work from home a few days a week, or commute via public transportation, carpooling, bicycling, walking or ride-sharing? If so, you could save hundreds of dollars per month compared to driving your car. Some employers even offer stipends or reimbursements for employees who choose greener transportation options. If these options won't work for your daily commute, perhaps you can walk, bike or ride a bus to appointments or errands. Driving fewer miles per year could qualify you for low-mileage car insurance discounts too.
24. Trim Your Housing Expenses
Whether you rent or own, housing is most people's biggest expense. You may be able to reduce the cost of housing by taking in a roommate or renting out a room in your home. It's sometimes possible to negotiate your lease terms to lower your rent.
Downsizing your home could reduce not only your mortgage, but also the cost of utilities, home insurance and maintenance. Just be sure to consider moving costs, real estate agent fees and potential tax implications.
Learn more >> Financial Pros and Cons of Downsizing Your Home
25. Find Free or Low-Cost Fun
Keep saving from being boring by searching out free or inexpensive activities. Go for a hike, take a picnic to the park or visit the community pool. Check out fun activities your local library has to offer, such as movie rentals, children's story hours and crafts classes. Museums, zoos and other institutions typically have free or discounted entry one day per month or one evening per week.
26. Swap With Friends and Family
Get more without spending more by sharing with friends and family instead of buying things. Organize a regular swap where neighbors share items they're willing to lend out or give away. Toys, games, books, clothing, gardening equipment, household items, sporting goods or tools are all fair game. You can either keep what you take or bring items back to the next swap for someone else to use.
Frequently Asked Questions
To figure out how much to save each month, determine your savings goals, such as buying a home or building an emergency fund. The 50/30/20 budgeting method is a simple approach that allocates 20% of your take-home income to savings and paying off debt. If money is very tight, try saving just $10 or $20 per pay period; it all adds up.
Here are some ways to speed up savings:
- Put any windfalls, such as a bonus at work, tax refund or cash gift, into savings.
- Keep your savings in a high-yield savings account to help it grow faster.
- Do a no-spend challenge, limiting your spending to necessities for a month or longer.
- Get a part-time job or start a side hustle such as freelancing, ride-share driving or babysitting, to earn more money for savings.
There's no single best way to save money. However, most people find that setting savings goals, automating savings, reducing discretionary spending, tracking expenses and setting a realistic budget are key to success.
It's also important to stay motivated and reward yourself for saving. Review the 26 ideas above to see which ones make sense for you and try a combination of the tips to see what works best.
The Bottom Line
Another way to save money: Maintain a good credit score. Good credit can help you qualify for lower interest rates on credit cards and loans, reducing the cost of borrowing money. You can check your credit score and credit report for free to see where you stand. If your credit score isn't where you want it, paying down debt, keeping credit utilization low and paying your bills on time can help improve it, which could make it easier to reach your savings goals.