There are a lot of simple ways to save money and increase your savings. By shopping smart and making a conscious effort, you can build up your rainy day fund.
Saving money can be easy and is important
With small adjustments to daily habits, cutting down on discretionary spending, and more, you can make long-term changes that will help save you money. These quick and easy tips, we take the guesswork out of saving money.
Although saving money looks to be relatively straightforward, in practice, it can be difficult. Let’s face it, spending your money is a lot more fun and more exciting than saving it. But, did you know that 65% of Americans have little to no savings? This means that 1 in 5 people in the United States has nothing saved at all.
Saving money can seem like a daunting task and you may be nervous about the sacrifices you will need to make. Do not fear, there are a lot of ways to cut down on your budget that do not require you to sacrifice anything at all.
By just being a little more attentive to your personal finances and current spending habits. Little things like cooking at home more often or utilizing your coins for small purchases can be small ways to save on products and services that add up quickly over time.
Saving money takes time and consistency; utilizing both short-term and long-term savings strategies will help you save money and can even help you get out of debt.
Setting savings goals, both long and short-term goals, paying off debts from credit cards, and student loans can help you grow your bank account. If you are having trouble setting money aside to save each month, contacting a financial advisor through a traditional or online bank may be helpful to build your savings account.
Setting that extra money aside will be extremely beneficial in the long term. Unless you are super wealthy, you will need these savings to buy a home or a car. In addition, saving money now will help you during your later years in retirement. Setting goals over a set period of time can help you reach your financial goals.
Our top money saving tips
We’ve rounded up some of our favorite ways to increase your savings, from budgeting to using coupons, to creating another source of income, there are many ways to save money and build up your savings accounts.
- Prep for grocery shopping
You can save money on groceries with a little bit of prep work before heading to the grocery store. Look through your pantry and fridge and write out a grocery list. Sticking to this list will help you avoid impulse items.
Plan your shopping around seasonal produce and use coupons to save even more. Meal planning is another great way to increase your savings on groceries.
- Map out major purchases
Plan out any major purchases with annual sale periods, such as national holidays and Black Friday. Timing your purchases and planning them out in advance can not only save you money but gives you time to weigh out your buying options.
- Switch your cell phone plan
By changing your cell phone plan, you can save a lot of money. In addition, you can remove your protection plan from your bill. This can save you up to $100 per year, per line on your account. Another way to look at this is to see how much data you are using on a typical month and adapt your plan to fit your actual needs.
- Look for ways to bundle your services
Many subscription services come with bundles. Look for ways to bundle your cable and internet into one easy package. By just switching up your cable plan, you can save up to $40 per month by utilizing your cable company’s bundle programs.
- Track your spending
Start keeping track of your monthly income and your expenses. By managing your monthly cash flow, you can better see where you can tighten your budget to save more money and track your savings. You can even use apps to automate this process. Tracking your spending will allow you to see exactly where your money is going, especially with those little purchases that can quickly add up.
- Cancel unnecessary subscriptions
If you have any subscriptions, like streaming services or memberships, that you rarely or never use, cancel them. These little payments can add up over time. Just canceling one $10 subscription per month can save you $120 per year.
- Set savings goals
Set a specific and realistic goal toward your savings. These goals can include things such as paying off your credit card debt or setting aside X amount each month for your retirement account. Setting and sticking to these goals will set you on your way to a better financial future.
- Create a budget
When budgeting, using the 50/20/30 rule is a great way to start. This rule has 50% of your income going toward essentials like rent, food, and utilities, 20% to savings, and 30% to discretionary spending.
- Refinance your home or car
Refinancing your mortgage or car loan saves you money by lowering your interest rate. Although this comes with some upfront costs, refinancing can save you hundreds of dollars each month.
- Avoid and consolidate debt
If you have a lot of debt, consolidating debt can help you pay off your debts faster and at lower interest rates. Debt consolidation combines all of your debt into one easy payment.
However, avoiding debt before you get yourself into trouble is always the best option. You can avoid debt by paying off credit cards in full each month and staying within your spending limits. As you continue to build up your savings, as unexpected savings pop up, you won’t need to put them on a credit card.
- Use your employer’s 401k match
Many employers will match your 401k contributions up to a certain percentage of your salary. If you can, always contribute enough money each month to max out on your employer’s match. Not only will this build up your retirement fund, but you are taking advantage of free money being offered to you.
- Invest in quality goods
Investing in products that are high quality will actually save you money in the long term. High-quality items last a lot longer than cheaper alternatives. Consider investing in your clothing, especially basics. High-quality clothing will last a lot longer and need to be replaced less often than lower-quality goods.
- Use coupons
Coupon clipping is a thing of the past. You can easily find coupons online on company websites and other apps across the internet. Always look out for deals and manufacturers’ coupons for the things you need.
- Buy second hand
Thrift stores are a great resource that can save you a lot of money. Whether you are going to a brick-and-mortar storefront or checking out online thrift stores, you can find pretty much anything you need used. If you thrift often, you can find gently used, high-quality goods at a fraction of the price.
- Carpool and use public transport
Make full use of carpool programs and public transportation in your area. Making these swaps can save you time and money, reducing wearing and tear on your car and your monthly gas bill.