Saving money is tough especially when you are living paycheck to paycheck and facing high living costs.
Experts recommend saving three-to-six months of expenses for emergencies, but a survey shows only 71% of Americans have emergency savings, the lowest in five years.
Despite the challenges, adopting frugal habits can make a difference. Many start the year aiming to spend less, but sticking to it is hard.
Saving for big goals like a home, wedding or vacation requires small lifestyle adjustments.
Although budgeting might seem difficult, setting clear goals can bring peace and excitement about future possibilities.
To improve your savings quickly, consider our practical tips for a healthier bank balance.
Let’s get started.
17 Ways to Save Money Every Month
1. Create a Budget
Start by calculating your net monthly income. Deduct fixed expenses first.
Aim to save at least 10% of your income, though 20% is ideal. Use the remaining amount to plan your budget.
If you are spending more than you earn, cut back, starting with non-essential wants.
For those with fluctuating income, base your budget on an average of the past 6-12 months.
2. Track Your Spending
Keep all receipts and bills for a month. Categorize them into fixed and flexible, then further into needs and wants.
Use automated tools from banks or credit cards to help categorize expenses.
3. Avoid Impulse Buys
Hold off on big purchases to avoid budget blowouts.
What’s considered a ‘big purchase’ varies with income. Research thoroughly before committing to significant investments like cars or homes.
4. Choose Fuel-Efficient Vehicles
Opt for a fuel-efficient car to save on gas, especially if you have a long commute.
A car with better mileage can offer substantial savings over time.
5. Cut Energy Costs
Reduce your energy bills by sealing cracks, adjusting the thermostat, unplugging unused appliances and choosing energy-efficient devices.
These small changes can lead to significant savings.
6. Refinance Your Mortgage
If your credit score has improved, consider refinancing your mortgage for a lower interest rate.
This can lead to lower monthly payments and less interest over time.
7. Savvy Shopping
Buy items on sale and choose those with the lowest cost per unit.
Bulk buying is only economical if you can use or store the items before they expire.
8. Save on Entertainment
Reduce entertainment expenses by suggesting cost-effective social activities.
Host movie nights or potlucks instead of going out to expensive venues.
9. Sell Unwanted Items
Sell items you no longer use, focusing on higher-value goods. Use online platforms for smaller items and local sales for bulky ones.
Treat any income from sales as a bonus and save it instead of spending it.
10. Start a Side Hustle
Consider using your spare time for a side business like babysitting, dog walking or selling handmade products online.
Choose ventures with low startup costs, using materials you already have.
Engaging in such activities not only earns extra income but also reduces spending on leisure activities.
11. Rent Out Extra Space
If you have extra room, renting it out can significantly boost your savings.
Ensure it aligns with your lease terms and local regulations. Screen tenants carefully to safeguard your property and personal safety.
12. Review Subscriptions
Examine your subscription services and cancel those you rarely use.
This includes cable TV, gaming services and gym memberships.
Overcoming the sunk-cost fallacy by canceling underused subscriptions can lead to substantial savings.
13. Save Loose Change
Collecting loose change in a jar is a simple, yet effective way to save money over time.
This small act can accumulate a surprising amount of savings.
14. Eating Smart
Cutting back on dining out and preparing meals at home can save a lot of money.
When eating out, opt for cost-saving strategies like sharing entrees or skipping extras like drinks and desserts.
15. Minimize Online Shopping
To reduce impulse buying, avoid saving payment information online and delete shopping apps from your phone.
Making online purchases less convenient can help curb unnecessary spending.
16. Pay Off High-Interest Debt
Paying off high-interest debts quickly can free up more money for savings.
Consider using additional income from side hustles to accelerate debt repayment.
17. Designate No-Spend Day every Month
Designate a no-spend day each month to foster savings habits.
Gradually increase the frequency of these days to boost your savings rate.
So these were some of the ways you can follow to save money every month.
