How to save money: 35 money-saving tips and tricks

Figuring out how to save money lets people avoid debt while still reaching their goals.

  • People can save money by setting a budget and sticking to it throughout the year.
  • It’s possible to lock in lower prices with recurring services like cable providers and insurance companies by speaking with their customer service teams.
  • Establishing a dedicated savings account may make it easier to track progress toward savings goals and could help people stay motivated.

Without savings, there’s a real temptation to charge purchases on a credit card and worry about paying it off later. While this is convenient, it can get people into trouble, especially if they’re trying to figure out how to save money each month.

Finding ways to save can help people avoid debt and may make it easier to achieve financial independence in the long run. However, there’s a lot of conflicting advice online that can make saving harder than it should be.

Here are a few tips to help people start saving, whether they’re looking to build a budget, want to cut back when shopping, or just need to save a few dollars each month to streamline their budget.

Table of contents

  • Budgeting tips to save money
  • Ways to save money when shopping
  • Ways to save around the house
  • General money-saving tips
  • Start saving money with PayPal

Budgeting tips to save money

Functional budgets are commonly considered the cornerstones of strong finances. Here are a few tips to help people use budgets to save money in the long run.

Set a budget and stick to it

People can use several types of budgets to improve their financial situations. Each method works in slightly different ways and helps prioritize different aspects of their finances. Here are a few of the most common individual and family money management strategies people can consider using:

  • The 50/30/20 budget: This budget allocates 50% of what someone earns toward necessities like rent and bills, 30% toward purchases they want, and 20% toward their savings.
  • The 60/30/10 budget: The 60/30/10 budget allocates 60% of earnings toward necessities, 30% toward wants, and 10% toward savings. This method may be ideal for people who live in higher-cost areas.
  • The envelope method: This cash-stuffing method requires individuals to set aside physical money each month for each budget category. All purchases use the cash from a designated envelope, discouraging overspending when envelopes are low on cash or empty.
  • The zero-based method: This method assigns a purpose to every dollar a person earns each month. By assigning a purpose to each dollar, people can gain more awareness of where their money is going and track their spending in real time.

Build emergency savings

Building an emergency fund can help people avoid going into debt when trying to pay for unexpected expenses. The amount people should save largely depends on their unique needs and concerns. However, many experts suggest that saving between three and six months’ worth of living expenses is ideal.

People may want to set up a dedicated high-yield savings account for their emergency savings to reduce the risk of using those savings for unrelated purchases. These accounts earn compound interest, helping people build their savings even when they’re not actively making deposits.

Review and cancel unused subscriptions

Taking the time to review current subscriptions can save people money. People can go through their credit card statements or bank statements to check for recurring payments to streaming services and other subscriptions. If there are subscriptions they’re no longer using or aren’t interested in keeping, they can cancel those subscriptions.

Once they cancel recurring subscriptions, people can then contribute the money they were spending on the subscriptions to their savings to further increase the amount they set aside each month.

Set up automatic payments

Setting up automatic payments can reduce the risk of people missing payments for recurring expenses. Recurring expenses are costs associated with categories like:

  • Utilities
  • Car insurance
  • Renters insurance
  • Streaming services
  • Cell phone bills
  • Internet service
  • Rent payments
  • Mortgage payments

Missed or late payments can often come with fees that can add up over time. By enrolling in automatic payments for certain recurring expenses, people can avoid those fees.

Set clear saving goals

Saving when people don’t know what they’re saving for can be tough. There’s nothing to measure progress against, and staying motivated to save at all may not be easy. By setting saving goals or financial resolutions, people can better track their progress and stay motivated.

Goals can be something small and open-ended, like saving $1000 by the end of the year. But they can also be bigger and more specific, like saving $30,000 for a down payment on a new home.

People may want to think about the upcoming purchases they want to make in the next six months, year, or five years. They can use these purchases to set savings goals.

Start paying down debts

Most debts, like credit cards and personal loans, charge interest on the money borrowed. That interest continues to accrue until the borrower repays the loan in full. People may be able to save money on interest by paying down or paying off their debts.

  • Paying down debts can reduce the amount of interest paid each month.
  • Paying off debts can eliminate the interest payments entirely.

Review insurance policies annually

People’s insurance needs can change from year to year, and the policy that worked initially may not meet their needs later on. By reviewing their policies, they’ll be able to make sure the coverage they have is right for them. If it’s not, they may be able to save money by dropping coverage limits to amounts that accurately reflect their needs.

People can also get quotes from different insurance providers for the same coverage limits they currently have. If another provider offers a lower rate, they may be able to switch or use that rate to negotiate better prices with their current provider.

Ways to save money when shopping

Shopping can be expensive, but these tips can help people save money on the items they need and want.

Shop around for the best price

Different retailers often charge different prices for the same items. People may want to shop around at different stores to find the best prices on the items they need, whether they’re purchasing in person or online.

Comparing prices and looking for shopping deals may take more time than simply buying the item at the first store visited, but it can save money in the long run.

Use shopping lists to curb impulse buys

Instead of heading to the store without a clear plan in place, people may want to use shopping lists for each major trip they make. These lists reduce impulse buying, helping people save money by encouraging them to only buy the items they need.

People can use shopping lists for purchases like:

  • Groceries
  • Clothing
  • Books and movies
  • Gardening tools and equipment

Shopping lists can curb impulse spending anytime someone is planning on buying more than one item.

Use coupons

Coupons may offer small discounts and deals on select items, but incorporating them into a shopping routine can help people save money on the items they need. In some cases, shoppers can even stack coupons, saving even more on their purchases.

Coupons are available through many store apps and can save people a few cents to several dollars on an item, depending on the coupon’s terms. Many stores expect shoppers to have coupons on hand before making the purchase. It’s rare for cashiers to point out coupons on items they’re ringing up, so be sure to plan ahead.

Consider generic or store brands

Name-brand items almost always cost more than generic or store brands. But many store brands offer the same quality as name brands at a much lower price point. Instead of buying name-brand items only, consider buying store brands in places like:

  • Grocery stores
  • Pharmacies
  • Electronics store

By incorporating generic brands into certain shopping trips, people can save money without losing out on quality items.

Buy second-hand items

Buying new items almost always costs more than buying gently used or second-hand items. Second-hand items are ones that people have traded in or sold to others at a discount. While some of those items can be very heavily used, many are lightly used or in almost-new condition.

People who are looking for the following types of items may want to consider buying second-hand or used:

Buy in bulk when able

Buying in bulk can often qualify people for discounts while also giving them a convenient way to stock up on goods they use most often. This may include items like:

  • Cleaning supplies
  • Paper products
  • Nuts and grains
  • Packaged foods
  • Canned goods
  • Beverages
  • Office supplies
  • Toiletries

People may want to shop at a warehouse store or order cases of items they use most at their preferred retailer.

Wait for items to go on sale

Retailers often put items on sale to make room for fresh inventory. People can leverage this by waiting for items they want or need to go on sale throughout the year. Check each retailer’s website to see what sales they have going each week before making a purchase.

Watch for deals throughout the year and consider waiting for a big shopping day like Black Friday or Cyber Monday to make big purchases. This can help people save money without forcing them to choose an outdated version of the item they’re looking for.

Take advantage of birthday specials

Many businesses offer discounts or free items to people who visit on their birthday. Don’t hesitate to ask stores in the area if they offer birthday deals. If they do, make a note of those deals and plan on visiting those businesses on that special day.

Keep in mind that businesses often require proof of birthdays before they’ll honor the discounts. People should bring their government-issued ID or driver’s license with them to claim the deal.

Ways to save around the house

There are a few ways people can cut costs on their spending around the house. Keep these tips in mind.

Look for ways to cut energy consumption

Energy costs for heating and electricity can add up year over year. Finding ways to cut back on energy consumption can help people reduce their utility bills each year. Here are a few easy ways to reduce energy use around the house, both during a crisis and throughout the year:

  • Turn off the lights when no one is in the room.
  • Set the thermostat a few degrees warmer in summer and cooler in winter when no one is home to improve summer and winter finances.
  • Pull the shades on hot afternoons to help keep the room cooler.
  • Upgrade to energy-efficient appliances as old, less-efficient models break down.

Cook meals at home

Dining out can be fun, but it can also be expensive. Try to reserve meals out for special occasions and cook meals at home instead.

When people cook at home, they can often buy cheaper ingredients at the grocery store and cook larger portions so they have leftovers to take for lunch at work or school.

Not a fan of cooking? Try making it fun by getting the whole family involved, and stay motivated by learning how to make a personal favorite that costs more at a restaurant.

Skip the coffee shop run

That daily coffee from a preferred coffee shop costs several dollars, and if people buy coffee out every morning, it can easily add up over time. Instead, try to make coffee at home.

The cost per cup will be much lower, and people can avoid impulse buying pastries and other treats, further helping them reduce their spending.

Cut the cable bill

Cable isn’t the only way to watch TV, but it can be one of the more expensive. People who rely on streaming services but still pay for cable may want to cut the cord entirely.

Keep in mind that signing up for multiple streaming services to make up for cable could cost more, so be mindful of the total cost before signing up.

If people still use cable, they may be able to negotiate lower prices from their provider. Contact the customer service line and see if they have any discounts available. If not, consider cutting premium channels to save money.

Look for a cheaper cell phone plan

Shop around for a new cell phone plan and see if switching to a new carrier could lock in a lower monthly rate. Just make sure their coverage map provides a signal to the places it needs to.

People may also be able to lower their cell phone bills by speaking directly to their carrier. Some offer retention discounts to customers who express their desire to try a different carrier with a lower price. Others may match prices if customers find a cheaper plan with another carrier.

If someone’s current plan and carrier are still the best fit for their needs, they may be able to cut their bill by:

  • Eliminating phone insurance
  • Buying a cheaper phone
  • Paying cash for their phone

Use homemade cleaners (when it makes sense)

People may want to use homemade cleaners instead of store-bought ones to further cut their costs. These cleaners use ingredients like vinegar, dish soap, baking soda, and other common household items, and in some cases, can outperform store-bought cleaners.

There are hundreds of recipes online. With a bit of research and due diligence, people may be able to phase out store-bought cleaners for most daily uses.

Wash clothes in cold water

By washing clothes in cold or lukewarm water or using the eco-warm setting on newer washing machines, the washing cycle can use less energy since the water heater won’t have to kick on as often (or at all).

Even better, washing with cold water can extend the life of fabrics by preserving their color and stretching the fabric less with each wash, meaning people may spend less on utilities and clothes purchases.

Line dry clothes

Clothes dryers use tons of energy with each cycle. People can cut those energy costs by line drying their clothes. If there’s space outside, people can dry their clothes in the sun to speed up the process. If they live in an apartment or a home without a yard, they can invest in an indoor drying rack and dry clothes indoors.

Like washing with cold water, line drying clothing can extend the life of different fabrics, further increasing savings.

Try a programmable thermostat

Programmable thermostats allow people to set different temperatures and heating/cooling cycles throughout the day without making them physically adjust the thermostat each time. This can help people lower their heating and cooling costs by letting the heat or air conditioning run less often at different times of day.

General money-saving tips

Here are a few tips to help people save money throughout their lives, whether they’re shopping or are just looking for a way to save a few dollars a month.

Plan ahead for big purchases

People can save money by planning ahead for big purchases rather than simply buying items as needed. Set financial goals and contribute to savings accounts regularly. Doing so can help people avoid relying on credit cards and accumulating debt when making a big purchase.

Also, consider taking the time to research and budget for those big purchases before making them. This can help turn a large purchase into an achievable milestone instead of a financial burden.

Invest in experiences, not things

Buying items that people don’t need can end up being a waste of money. Instead, consider investing in experiences. These experiences can be anything that brings people joy, including:

  • Concert tickets
  • Vacations
  • Theme park tickets
  • Trips to local museums

By investing in experiences, people can avoid buying items they and those they care about don’t need while still doing things they enjoy.

Keep cars maintained

When people maintain their cars correctly, they’re less likely to experience major breakdowns or mechanical problems. This is because mechanics can spot minor problems before they get worse, and minor problems tend to cost less to repair.

People should follow their car manufacturer’s maintenance recommendations and seek the advice of an experienced mechanic. This can extend the vehicle's life and help them save money on repairs later.

Use public transportation

Rideshare services and taxis can add up fast if people rely on them for transportation. Instead, consider using public transportation like bus services, subways, and even bike-share programs. These typically cost less each month and can be just as convenient as rideshare services.

Look for free entertainment

Many communities offer free or discounted entertainment and activities throughout the year. People can save money by looking for and attending those activities with friends and family.

Some common discounted or free activities include:

  • Lower-cost movie screenings on specific days
  • Free admission to museums
  • Buy-one-get-one admission to parks and events

Look at cash-back and other rewards credit cards

Cash-back rewards credit cards and other benefits-based cards can help people earn rewards for using their credit cards on regular purchases. These rewards can help people save money by helping decrease their statement balance by using the rewards as a statement credit.

Depending on the type of card they choose, people may be able to get cash back on groceries, everyday purchases, travel expenses, and more.

Use the library

Public libraries are free to members of the community. They provide movie rentals, let people borrow books (including new releases), offer free internet, and more. Instead of buying books, movies, and music from retailers, consider borrowing them from a local library.

Ditch the bank fees

Some banks still charge customers fees for the privilege of keeping their money at that financial institution. These fees can include:

Instead of paying those fees, people may want to switch to a bank that offers fee-free banking. This can save them money month over month.

Repair instead of replace broken items

Replacing broken items can cost hundreds of dollars, depending on the item. Instead of replacing an appliance, vehicle, or other high-priced item, try to get it repaired. Repairs typically cost less and can help people save money by extending the life of the item.

Even better, repairing high-priced items can give people time to save money toward a replacement item, potentially helping them avoid going into debt.

Examine personal habits

Some habits can cost people hundreds of dollars each month, and many may not know how much they’re spending on those habits. Someone may want to take a look at their habits and see if there’s something they can do to cut back.

Habits like smoking, retail therapy, eating lunch and dinner out each day, and other similar activities can add up over time. By cutting back or eliminating those habits, people can save money every day.

Collect spare change

Cash may not be the most common way to pay these days, but people who still use cash may be able to save money by collecting their spare change. Instead of letting coins sit in the center consoles of cars or under couch cushions, pick them up and deposit them into a savings account. Over time, those spare coins can add up and help people build their savings more quickly.

Start saving money with PayPal Savings

Learning how to save money fast can help people stick to their budget and may make their finances easier over time. These tips are just a starting point, but the sooner people start looking for ways to save on regular expenses, the easier it will be to reach savings goals and create a stable financial future.

Work toward savings goals and earn interest on your money by saving money in a PayPal Savings account.1

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