Learning how to save money doesn’t have to be a struggle. That’s why we put this article together.
It’s full of money-saving tips to help you on your way to financial freedom and prosperity.
That said, it’s vital to note that saving money is a long-term game. So take it one step at a time.
You don’t need to learn all about how to spend less money or start using every money-saving tip at once.
Instead, focus on building healthy money-saving habits over time – you could even bookmark this page and refer back to it often.
Now, before we dive into how to save money, let’s answer an important question:
How Much Should You Save a Month?
Many people recommend following U.S. Senator Elizabeth Warren’s 50/30/20 budgeting rule when it comes to saving money. This rule of thumb suggests that you spend 50 percent of your income on needs, 30 percent on wants, and 20 percent on savings.
Specifically, here’s what each category includes:
- 50% on needs, such as groceries, housing, utilities, and health insurance.
- 30% on wants, such as hobbies, dining options, and shopping.
- 20% on savings, such as retirement plans, emergency savings, or college funds.
30 Tips on How to Save Money
There are countless ways to save money, but it’s always best to start with the basics.
These 30 tips for saving money are broken down into four simple categories:
- Long-Term Money-Saving Tips
- How to Save Money on Living Expenses
- How to Spend Less Money on Non-Essential Purchases
- Bonus Money-Saving Tips
Let’s dive in!
(Psst!: While we feature certain third parties in this article, we receive no affiliate compensation for including them.)
Long-Term Money-Saving Tips
When learning how to save money, it’s important to think long-term. These ways to save money will pay dividends well into the future.
1. Automate Your Saving
Make saving easy. Set up automatic payments to your savings accounts.
2. Consolidate Your Debt
Consider talking to a financial advisor about your debt. There may be a way for you to consolidate it into one monthly payment – this could make it more manageable and may even reduce the amount of interest you pay.
3. Track Your Spending with a Budgeting App
Knowledge is power! Tracking your spending can reveal much about your financial habits. Many budgeting apps also teach you more about how to save money.
Here are three budgeting apps to check out:
- Mint: iOS / Android
- You Need a Budget: iOS / Android
- Every Dollar: iOS / Android (as shown in the screenshot below)
4. Take Advantage of Your Employer’s 401k Match Benefit
If your employer has agreed to match your 401k contributions up to a certain percentage of your salary, take advantage and consider contributing the full amount.
5. Refinance Your Mortgage or Car Payment
Consider talking to a financial advisor about refinancing your mortgage or car loan to obtain lower interest rates.
6. Prioritize Your Plans
There are many ways to save money but if you don’t know what you are saving for it can be hard to stay motivated. List all the things you would like to save for and prioritize them into short, medium and longer term goals. Now you can assign monetary values to each goal and work towards achieving them.
7. Side Hustle
If you have a hobby that you really enjoy, why not use it as a way to save money. If you enjoy running you can coach people on how to get as good as you for a small fee. If you enjoy knitting, start a small knitting group and charge a small fee to show people the basics and share your knitting patterns.
8. Sell Stuff Online
If you have stuff that you no longer use, need, or want, why not sell them online through the likes of Facebook Groups, online selling sites and forums. Whether it’s clothes that no longer fit, books you’ve grown out of, or sports equipment you thought you would use, it’s not difficult to sell stuff online in 2020.
How to Save Money on Living Expenses.
It can be tricky to figure out how to save money on everyday living expenses. However, just like most money-saving tips, it’s the little things done often that make all the difference.
9. Become More Energy Efficient
Bills can add up. Turn off lights and unplug appliances when they are idle to help reduce your utility bills. You could also take shorter showers, and consider insulating your home.
10. Share Entertainment
11. Reduce Your Phone Costs
Try to switch to a cheaper phone plan, use WIFI wherever it’s available, and consider whether you need phone insurance.
12. Wait for Sale Periods to Make Major Purchases
Instead of paying full price, wait until Black Friday, Cyber Monday, or the January sales come around before you purchase that new TV or sofa.
13. Only Use Your Bank or Credit Union’s ATMs
One withdrawal a week at $3 will cost you over $150 per year. Skip the fees and use ATMs that provide free withdrawals for a quick win when it comes to how to save money.
14. Plan Your Grocery Shopping Before You Go
Try to buy only the things you need by planning your shopping before you go. Then all you need to do is stick to your list.
15. Use Discount Codes and Coupons
16. Lower Utility Costs
Are you using the same utility company since you moved into your place? It doesn’t hurt to shop around annually for better deals. Many energy providers offer discounts to move to them, showing that this is a great way to save money on living expenses, and spend less money in the longer term.
17. Rent Your Parking Space
When it comes to how to save money the answer might be right in front of you — well your front door. If you have a parking space that you don’t use, why not rent it out to someone who works in your area, or lives close by. Furthermore if you have a spare room, you can rent this out to a student, or young professional to save a bit of money on living expenses.
How to Spend Less Money on Non-Essential Purchases
When learning how to save money, it’s vital that you find ways to reduce the amount you spend on non-essential purchases. Here are some money-saving tips to help!
18. Cook at Home More
Eating food from restaurants regularly can quickly add up to become a huge household expense. Find ways to make cooking more appealing by searching the web for quick and easy recipes.
19. Try Borrowing It
Need a lawnmower or a BBQ grill? Try to borrow it from a friend or neighbor. Also, before buying new books online, take a trip to your local library.
20. Buy Generic Brands
Many brand name foods and medicines share the exact same ingredients as generic brand options. Save money by buying generic alternatives.
21. Buy Used Items
Why buy things new, when many used items are just as good? A solution to how to save money is making the effort to find used items in local thrift stores and on marketplaces like eBay and Craigslist (as shown in the screenshot below).
22. Carpool Where Possible
Have you considered how to spend less money while you are earning money? If you normally drive to work, consider carpooling with people in your neighborhood. By sharing the cost of commuting you can save money and get to know more people in your area. Consider putting a message on a local bulletin board either online or offline to find people who might be interested.
23. Exchange Favors with Neighbors
Similar to borrowing things, but with community spirit in mind, have you considered exchanging favors with neighbors. Maybe you can babysit for your neighbor in exchange for use of their lawnmower. Or swap some old textbooks you have lying around for some plants you like. You don’t need to spend money in order to get something nice.
Bonus Money-Saving Tips
If you’re finding it difficult to learn how to save money, these bonus money-saving tips can help!
24. Work Out How Much Purchases Cost Per Hour
Get clear on how much things really are worth. Instead of simply looking at the price tag, divide the cost by how many hours it would take you to earn that money. If you earn $10 per hour, are a pair of $90 shoes worth 9 hours of work?
25. Commit to No-Spend Days
Tackle your spending habits head-on by committing to full days where you save money by not spending it. This can help you to become more aware of your habits and learn how to spend less money.
26. Use the 30 Day and 24 Hour Rules
Reign in those impulse buys with these two budgeting rules: Before you make any non-essential small purchase, wait 24 hours, and before you make any non-essential large purchase, wait a full month. After the time’s up, re-evaluate and if you feel the purchase is still necessary, go for it!
27. Save Money Automatically
Some bank accounts let you automatically save a few pennies every time you buy something. Here’s how it works: Every purchase you make is rounded up to the next dollar and those extra pennies are transferred to a savings account. You’ll save money without noticing!
28. Invest in Quality
Okay, so we have talked about how to save money by not buying things, but sometimes you need to buy a new sweater, or pair of shoes. In this case, instead of trying to save money by buying something cheap, you should invest in quality. This way things will last longer and give you more joy. Instead of buying a cheap pair of shoes every three months, you can buy a high quality pair that will last you years.
29. Delete Your Card Details
You may find that you are window shopping a little too often and it is too easy to add things to your cart and checkout in two clicks. Try deleting your credit card details from ecommerce sites you have accounts with. This will add an extra step to your shopping experience that will act as a deterrent to you buying online.
30. Staycations are Here to Stay
It can be hard to stay motivated to save money when everyone is going on holidays and all you want to do is relax. Staycations are one of the great ways to save money while enjoying yourself. Spend time researching the hidden gems around you and try a day out, or a weekend getaway that you can get public transportation to, or you don’t need to spend money on accommodation.
Summary: How to Save Money Starting Today
If you’re wondering how to save money, these 30 tips can help you get started today.
Although these money-saving tips won’t make you rich overnight, they’re a great place to start. Remember, all ways to save money only work with time, patience, and consistency.
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