How to Save Money: 30 Practical Tips

Do you struggle to save money? In today’s economy, it might feel as if you are working as hard as you can just to make ends meet.

But building financial security provides peace-of-mind and the freedom to pursue our goals and build a better life. And it starts with saving and investing.

But saving money isn’t just about choosing a savings account and putting aside 10% or 20% of each paycheck (although that’s a good start). The right savings strategy incorporates smart financial decisions and effective money management.

With the right steps, you can turn your financial situation around, no matter how bad it may seem, and begin to gradually build wealth and improve your financial well-being.

mother and daughter saving money

30 Best Ways to Save Money

The following tips are designed to be practical, adaptable, and effective for virtually anyone – no matter where you are in your financial life. A solid savings plan involves more than just tucking money away. Your strategy might include reducing your everyday expenses, making more informed financial decisions, and exploring additional income opportunities.

The goal is to create a resilient financial future, one small step at a time. It’s never too late to start, and every dollar saved contributes to your financial freedom.

Understanding Your Financial Health

Financial health is a fundamental part of overall wellbeing. It includes understanding where your money is coming from, where it’s going, and how to ensure that you’re prepared for future financial needs or unexpected events. The following steps can help you assess and improve your financial health:

1. Create and Follow a Monthly Budget

A monthly budget is a financial blueprint that allows you to keep track of your income and expenses, and also helps you identify potential spending leaks and areas where you can save more.

Understanding your monthly expenses is critical for setting and achieving realistic savings goals. Stay committed to your budget to take control of your financial future and progress toward your savings objectives.

2. Track Your Spending Habits

Keep a close eye on your spending habits to find even more ways to save. Regularly review your bank account and credit card statements to identify spending patterns that could be hindering your savings journey.

Even minor expenses add up over time, consuming a significant portion of your monthly budget. Identifying these patterns can provide valuable insights into where you can cut back and redirect funds toward your savings goals.

3. Establish an Emergency Fund

An emergency fund is a cornerstone of financial security. This fund serves as a financial safety net, offering protection against unexpected expenses like sudden medical emergencies or job loss.

Aim to save three to six months’ worth of living expenses in a separate savings account for this purpose. An emergency fund can provide peace of mind and financial stability during unforeseen circumstances, allowing you to handle emergencies without derailing your long-term financial plans.

Best Ways to Save on Monthly Expenses

Small changes in your recurring monthly expenses can lead to substantial savings over time. Here are some strategies:

4. Lower Your Utility Bills

Utility bills – particularly energy costs – represent just 6% of the average household budget, according to the doxo INSIGHTS Utilities Market Size and Household Spending Report. Yet, this amounts to nearly $4,000 per year and, according to another study from doxo, 73% of American consumers say they are concerned about their ability to pay their utility bills due to inflation.

Fortunately, you can take steps to reduce your energy costs – and you might be able to shuffle those new-found funds into your savings account. To start, adjust your thermostat a few degrees, unplug electronics when you’re not using them, and rely on natural light whenever possible.

You can also make upgrades to your home, such as switching to energy-efficient appliances, upgrading doors and windows, or increasing your home’s insulation. Consider conducting a home energy audit to identify energy leaks. Check with your local electric company regarding grants and incentives to reduce household energy use.

See also: How to Negotiate Your Bills to Save Money

5. Reduce Your Grocery Shopping Bill

Groceries are a necessary expense, but that doesn’t mean there aren’t ways to save money. Planning your meals in advance minimizes food waste and prevents impulse buys. Using coupon codes, buying in bulk, and opting for store brands over name brands can result in substantial savings over time.

See also: 25 Ways to Save Money on Groceries

6. Cut Back on Transportation Costs

Transportation costs can be a considerable monthly expense. Carpooling, using public transportation, cycling, or even walking to work can help save money on gas, parking, and car maintenance costs. Plus, these options are environmentally friendly!

7. Reduce Subscription Services

Subscription services can seem inexpensive individually, but collectively they add up. Review all your subscriptions, from magazines to online streaming services, and consider canceling ones you don’t use often. This simple action can eliminate hidden fees and save you a surprising amount of money each month.

8. Refinance Mortgage or Renegotiate Rent

Housing is usually the most significant monthly expense, representing as much as 30% of your household budget, according to the U.S. census bureau. If you’re a homeowner, consider refinancing your mortgage for a lower monthly payment. Renters can try negotiating their rent, seeking a smaller place, or moving to a less expensive area.

9. Reduce Your Monthly Cell Phone Bill

Many people pay for more cell phone services than they need. Review your cell phone plan, eliminate unnecessary services, and consider switching providers if you can find a cheaper plan that suits your needs.

10. Take Advantage of Student or Senior Discounts

Discounts are a simple yet effective way to save money. Student and senior discounts are particularly widespread. Many businesses, from restaurants to retailers, offer these discounts as a benefit to these demographics.

If you fall into one of these categories, always inquire about the availability of these discounts, even if they’re not advertised. Each discount may seem small, but collectively, they can make a substantial difference in your monthly expenses. Remember, every penny saved contributes to your overall financial goals.

11. Invest in a Water Filter or Water Delivery Service

Regularly buying small bottles of water can add up over time. Instead, consider investing in a waater filter for clean, healthy water. It’s more economical and eco-friendly!

For those who prefer bottled water, consider a bulk water delivery service that delivers large 5-gallon bottles. These services often offer water at a much lower cost per gallon than purchasing individual small bottles, resulting in significant savings. Plus, you’ll be reducing plastic waste, making it a win-win situation.

Save Through Lifestyle Changes

Incorporating savings-conscious habits into your everyday lifestyle can make a significant impact on your financial health. Here’s how you can do it:

12. Cut Back on Dining Out

Preparing meals at home not only saves money but also offers a healthier alternative to dining out. If buying lunch at work is a common practice for you, try meal prepping on weekends. This habit can save both time and money during the week.

13. Reduce Spending on Entertainment

High-cost entertainment, such as movies, concerts, or theater shows, can add up quickly. Consider lower-cost or free alternatives, like attending local community events, streaming movies at home, or hosting a game night with friends. These options can provide just as much fun while helping you stick to your savings goals.

14. Spend Less on Clothes

Fashion can be a significant expense. However, shopping at thrift stores, swapping clothes with friends, or repurposing older pieces can give your wardrobe a fresh look without the hefty price tag. Also, keep an eye out for online sales, especially with Amazon Prime Day coming up, and shop the clearance racks in brick-and-mortar stores.

15. Quit Expensive Habits

Certain habits like smoking, drinking alcohol, or regular coffee shop visits can significantly drain your budget over time. Cutting back on or quitting these habits can lead to substantial savings, and the positive effects on your health are an added bonus. By identifying and curbing these expensive habits, you’re investing in both your financial and physical wellbeing.

Financial Tools and Practices for Saving

Your financial habits and the tools you use can significantly impact your ability to save money effectively. Here are some strategies that can help boost your savings:

16. Open a High-Yield Savings Account

High-yield savings accounts offer a higher interest rate than typical savings accounts, providing an opportunity to earn passive income on your money. While rates can fluctuate, any amount of extra interest can help you reach your savings goals faster.

17. Make Saving Automatic

Automating your savings removes the temptation to spend money before it’s saved. Set up automatic transfers from your checking account to your savings account, or direct deposit a portion of your paycheck straight into your savings. This simple strategy ensures regular contributions to your savings.

18. Leverage Cashback and Reward Programs

Many credit cards and financial institutions offer cash back and reward programs on everyday expenses. Put the extra cash back in your high-yield savings account where it can grow. Remember to pay your credit card balance in full each month to avoid paying interest and negating these rewards.

19. Use Tax-Advantaged Savings Accounts

Tax-advantaged savings accounts, such as 401(k)s or IRAs, offer substantial tax benefits that can help maximize your savings. Whether it’s tax-deductible contributions or tax-free withdrawals in retirement, these accounts can contribute to significant long-term savings.

20. Pay Off High-Interest Debt

High-interest debt, such as credit card debt, can significantly impede your savings journey by adding substantial interest payments to your monthly expenses. Prioritize paying off these debts as quickly as possible to free up more money for savings.

21. Automate Bill Payments

Missed or late payments can lead to unnecessary fees and penalties. By setting up automatic bill payments, you ensure that all your bills are paid on time, every time, helping you avoid these extra costs. Automation also reduces the stress of remembering due dates, giving you more peace of mind in managing your finances.

Invest as a Form of Saving

Investing is another form of saving that can potentially yield higher returns over the long term. By understanding and utilizing the principles of investing, you can accelerate your savings growth. Here are some tips to help.

22. Understand the Power of Compound Interest

Compound interest, or earning interest on interest, is a powerful tool that can significantly boost your savings over time. The earlier you start saving, the more time your money has to compound and grow. Even starting with small amounts can lead to significant growth over time due to this “‘interest on interest” effect.

23. Explore Low-Risk Investments

Investing doesn’t always mean taking on significant risk. There are many low-risk investment options, such as government bonds or diversified mutual funds, that can grow your savings steadily over time. Always consider your risk tolerance and financial goals before investing. It may help to speak with a financial advisor to pinpoint your goals and identify the best investment strategy for you.

24. Regularly Review Your Investment Portfolio

Regularly reviewing and rebalancing your investment portfolio can help ensure it remains aligned with your financial goals and risk tolerance. Markets change, and so can your financial circumstances, so it’s important to keep a close eye on your investments. Make necessary adjustments when required to help secure your financial future and keep your savings journey on track.

Make Extra Money to Boost Savings

Sometimes, saving money isn’t just about cutting back on expenses; it can also involve finding ways to increase your income. Here are some strategies to make extra money and boost your savings.

25. Sell Unused Items

Take a look around your home and identify items that you no longer use or need. Sell these items through online consignment shops or garage sales to declutter your space while earning you some extra cash. You can pad your savings without having to cut back on your current lifestyle.

26. Start a Side Hustle

If you have a hobby or skill that can be monetized, consider starting a side hustle. This can range from freelance writing or graphic design to pet sitting or crafting. A side hustle can not only supplement your regular income but can also provide a creative outlet or the opportunity to turn a passion into profits.

27. Rent Out Extra Space

Do you have an extra room, basement, or even a parking spot that you’re not using? Consider renting it out. Platforms like Airbnb can make it easy to rent out unused space for short periods, potentially earning you significant extra income.

Through websites like Sniffspot, you can even rent out your yard space for people with dogs that need room to run. allows you to rent out your garage, barn or shed for storage to people in your neighborhood.

Remember, though, to understand your obligations as a host in this kind of business, including any tax implications and local regulations. Always ensure you have adequate insurance to cover any potential issues.

Wrapping Up: Further Tips to Enhance Your Savings Strategy

As we conclude, here are a few additional key practices to keep in mind that can significantly enhance your savings journey:

28. Take Advantage of Free Money

“Free money” might sound like a myth, but there are plenty of situations where it exists. From employer-matched retirement contributions to scholarships for education and various government programs, make sure to explore and take full advantage of these opportunities. Leaving these resources untapped is like leaving money on the table.

29. Distinguish Between Needs and Wants

Successful money management often comes down to differentiating between what you need and what you want. Needs are the essentials for living – things like food, housing, and healthcare.

Wants, on the other hand, are items or experiences that enhance your life but aren’t strictly necessary. Making a clear distinction between the two can help guide your spending decisions and reinforce your commitment to saving.

30. Adjust Your Savings Strategy Regularly

It’s crucial to remember that your financial situation, along with your goals, will inevitably change over time. As such, your savings strategy should be flexible and adaptable.

Regularly review and adjust your savings plan to ensure it aligns with your current financial situation and future objectives. Just like a car, your savings strategy will occasionally require a tune-up to ensure it’s running optimally and keeping you on the path to financial wellness.


Saving money might seem daunting at first, but with the right approach and mindset, it’s quite achievable. Whether you’re saving for a down payment on a home, your child’s education, or holiday gifts, every dollar saved brings you closer to your goal.

Remember that the journey to financial security isn’t about deprivation; it’s about making smart choices that set you up for a better financial future. Start saving today, and you’ll be amazed at how quickly your money can grow.

Every journey begins with a single step, and the decision to start saving money can be that transformative step towards a more secure and prosperous future. Happy saving!

Dawn Allcot
Meet the author

Dawn Allot is a personal finance writer and content marketing expert specializing in finance, travel, real estate, and technology. In addition to her work at Crediful, Dawn regularly writes for Bankrate, GoBankingRates, and The Balance.