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.
6 Best Ways To Save Money Each Month
Here are six 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
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 bill. However, you may be spending more than you realize on non-essential things like dinners out, coffee shop lattes 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 fancy lattes 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! Check any old-fashioned paper flyers you receive, coupon apps and sites like Ibotta and Groupon, plus any store apps to find coupons before making your purchases. 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 the card you use has reasonable interest rates, not only do you save by using it but when you consistently pay your bill on time, you can 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.
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.
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.
FAQ
Here are the answers to some of the most frequently asked questions regarding saving money.- How can you save money every month?
- You can save each month by following these simple steps:
- -Cancel any unused subscriptions
- -Cut down on your discretionary spending
- -Use coupons
- -Shop with cash-back credit cards
- -Automate your savings
- -Start a side gig for extra income
- You can save each month by following these simple steps:
- How can you save $1,000 in 30 days?
- Saving $1,000 in 30 days may not be easy, but it is not impossible. For example, in order to save this amount you would roughly need to save $33 every day. In order to make that more achievable think of it as $233.33 per week. If you are paid weekly, this would mean taking that amount off the top of your check every week. It would also help to cut back on discretionary spending to free up more money to set aside.
- How can you save $500 in 30 days?
- Here are some easy ways to save $500 in 30 days:
- -Cut back on any discretionary spending
- -Try a no-spend month
- -Sell items you no longer need online
- -Cancel your unused subscriptions
- -Start a side hustle
- Here are some easy ways to save $500 in 30 days:
- What is the 30-day rule?
- The 30-day rule applies to impulse purchases, and how impulse buying can be curtailed if you wait 30 days before making a purchase that catches your eye. If you defer all non-essential purchases for 30 days you may be surprised as to just how much money you can save.
Gabrielle Olya contributed to the reporting for this article.