How to Save Money Each Month: 12 Proven Ways
Written by
Caitlyn Moorhead
Edited by
Emily Gadd
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No matter what your goal is, it’s easier to get there when you make a conscious effort to save a little bit every month rather than being overly ambitious and aiming to save up a lot of money in a short period of time. After all, if you’re not realistic about how you will save, chances are you won’t stick to your plan.
12 Best Ways To Save Money Each Month
Here are 12 ways to save a little each month — and even if it doesn’t feel like you’re saving a lot, every little bit you save gets you closer and closer to your ultimate goal.
- Cancel unused subscriptions
- Cut down on discretionary spending
- Use coupons
- Shop with cash-back credit cards
- Automate your savings
- Start a side gig for extra income
- Negotiate your bills
- Eliminate bank fees
- Join ‘Buy Nothing’ group on Facebook
- Be ‘utility conscious’
- Remember ‘We have food at home’
- Earn more interest
1. Cancel Unused Subscriptions
“Unused memberships and subscriptions can cost you hundreds, and sometimes thousands, of dollars a year,” said Brian Walsh, senior manager of financial planning at SoFi. “Automatic renewals might make your life easier, but eventually, people forget that they have that $30 per month gym membership or $15 per month streaming service that they never use.”
Take a look at all of your monthly subscriptions and cancel the ones you don’t use. For every subscription you cancel, put that monthly fee directly into your savings. You were already used to spending that money each month, so you won’t miss having it in your checking account.
2. Cut Down on Discretionary Spending
Some of your monthly expenses are essential and fixed, such as auto insurance or electricity bills. However, you may be spending more than you realize on non-essential things like dinners out, iced coffees and new shoes. It’s definitely OK to have fun with your money, but cutting back on these expenses can help you pad your savings.
For example, if you’re used to buying iced coffee five days a week, consider cutting down to twice a week and stashing that extra cash into your savings account. By tracking your spending and monthly bills, you can see where there is wiggle room to start saving.
3. Use Coupons
Whether you are online shopping or in the grocery store, coupons are everywhere so there’s no excuse not to use them! Before making any purchases, check:
- Paper flyers
- Coupon apps
- Sites like Ibotta and Groupon
- Store apps
Any cash you save can be redirected into your savings.
4. Shop With Cash-Back Credit Cards
Making purchases you normally would with a cash-back credit card automatically saves you money on every purchase — and that 1% or 2% can really add up over time. Pay attention to categories where you may get extra cash back and be sure to put those extra funds into a savings account or even start an emergency fund.
If you consistently pay your bill on time, you can also improve your credit. Carefully using credit will allow you to stretch out the time your bank account can last between paychecks. This makes it more likely that you won’t have to dip into your savings thus letting it grow more in the long term.
5. Automate Your Savings
Once you’ve figured out how much money you can dedicate to savings every month, set up an automatic transfer from your checking to your savings account. This way you’re sure to stay on track without any effort.
The transfer amount can be based on your spending habits or you can try a budgeting percentage breakdown such as the 50-30-20 rule.
This is where you save 20% of your income every month. That leaves 50% for needs, including essentials like mortgage payments and food. The remaining 30% of your income is for discretionary spending. That 20% is what you can automatically transfer to your savings account and investments.
6. Start a Side Gig for Extra Income
One of the best ways to save more is to earn more — and this doesn’t have to be a huge time commitment. Pick up an occasional side gig such as ride-share driving or dog walking, or find extra income in your own home by decluttering and selling off anything you don’t need.
7. Negotiate your bills
Most bills can be negotiated, saving you money every month while enjoying the same services you pay for. Whether it’s your internet, cell phone, subscriptions, or any other monthly service, you can call to see if there are any better rates available.
One hack is to call your provider when you have a deal from a competitor, and ask if they can match the price. If they don’t, simply switch providers and save money.
8. Eliminate bank fees
Bank fees can sneak up on you and end up costing you hundreds per year if you don’t pay attention. Here are a few bank fees to be mindful of:
- Monthly service charges
- ATM fees
- Overdraft fees
- Statement fees
- Minimum balance fees
While many big banks charge these fees, most local credit unions don’t. You can switch your banking over and get rid of the pesky month fees, and may even get your ATM fees reimbursed.
9. Join ‘Buy Nothing’ group on Facebook
If you want to save big money on everyday items, joining a ‘Buy Nothing’ group on Facebook can help. The Buy Nothing Project started as a way for hyper-local communities to share things they no longer needed, and has expanded nationally.
Many local community Facebook groups allow you to give away things you don’t need, and pick up things you do for free from your neighbors. This can save a boatload of cash on items like:
- Clothing
- Toys
- Household items
- Other needs (or wants)
10. Be ‘utility conscious’
While getting energy-efficient upgrades in your home can save money, it usually costs a lot of money to make that happen. New windows, new A/C unit, new fridge, etc. can cost tens of thousands just to save a few hundred dollars per year.
In the meantime, simply being a bit more ‘utility conscious’ can save money. Try these small steps and see how much you save:
- Set timers on lights and appliances to turn off at night
- Get energy-efficient bulbs
- Keep windows and doors sealed from air leaks
11. Remember ‘We have food at home’
Yes, having someone cook your food is amazing. And yes, it now costs an arm and a leg. Inflation has hit restaurants harder than most places, and eating out is very expensive. To save possibly $100 or more per month, remembering that “we have food at home” can help you stay on track and stop eating out. Add in some meal prep for lunches out, and you can save a huge amount.
12. Earn more interest
With all the money you are saving, it’s a good idea to put that cash to work, too. Opening a high-yield savings account can earn you 4% APY (or more) so that your cash can earn more cash. This is a simple way to earn money without even thinking about it, and if you have a sizable emergency fund, this can equal hundreds of dollars per year.
Final Take
It may seem like saving a little here and there won’t really make a big difference in the long term. However, small sacrifices you make with spending and saving now will greatly impact your financial future. Having money tucked away can not only ease the burden of when the unexpected happens but also paint a prettier retirement picture for you later.
Jacob Wade and Gabrielle Olya contributed to the reporting for this article.
