Simple Tips to Save Money Every Month
Saving money every month can seem impossible. Especially when you feel like you’re on life support when your paycheck hits your bank account. But don’t worry, I’ve got simple yet effective tips for you to save money every month without turning into a cheapskate who washes and reuses paper towels.
1. Paycheck Routine
Think of your budget as your personal financial GPS. Without it, you are likely to get lost wondering where all your money is going. Start by listing your sources of income and all your expenses, then categorize them.
Apps like Mint or YNAB can make this tedious task almost fun by color-coding your expenses and providing insightful charts. But pen and paper can do the trick, too. I know you’ve been looking for a way to use Excel, so you can use that, too.
Once you have a clear picture, think of it as a percentage chart and assign proportions accordingly. For example, see what percentage of monthly income goes to mandatory payments, what percentage goes to subscriptions. Once you categorize all these things, your monthly budget becomes an overall monthly allotment instead of calculating everything one by one.
Sounds complicated?
Actually, it’s not. I explained step-by-step how to create a paycheck routine in my article here, so you can start there.
2. Automate Your Savings (Out of Sight, Out of Mind Right?)
Set up an automatic transfer from your checking account to your savings account each month. That way, you’ll be saving before you even have a chance to spend. It’s like paying yourself first, but you may have to have the uncomfortable conversation about giving yourself a raise when the time comes.
Consider using high-yield savings accounts, which offer better interest rates than regular savings accounts. Online banks often offer higher rates because they have lower overheads. With automatic transfers, you’ll be surprised at how quickly your savings grow without any effort on your part.
Rounding apps can also help by rounding up your purchases to the nearest dollar and investing the rest. This is the digital equivalent of emptying your pockets of coins at the end of the day, but with a much higher potential return.
You may also want to consider investing your spare change in mutual funds. Especially once your savings account reaches a certain level, it is wise to invest the money that comes in.
3. Ditch Unnecessary Subscriptions AKA Wallet Killers
How many streaming services does a person need? Go through your subscriptions and cancel the ones you don’t use regularly. Sure, it can be painful to cancel that eleventh subscription service that promises endless reruns of ’90s sitcoms, but your bank account doesn’t find those shows very funny.
Review your subscriptions annually-from streaming services to gym memberships to magazine subscriptions. If you’re not using them, it’s time to cancel them.
For the subscriptions you do keep, see if you can switch to a cheaper plan. Many services offer discounted rates for students, families, or for annual payments instead of monthly, so look for ways to take advantage of them.
4. Cook at Home
I know, I know, it’s a cliché, but that doesn’t mean it doesn’t work.
Eating out is fun until you realize you just spent $200 on food you can barely pronounce. Cooking at home can save you a ton of money, and with a little practice, you can even become a halfway decent chef. Plus, you get to brag about your cooking skills on social media. I mean, as much as making Alfredo counts as cooking.
To avoid the temptation to eat out at the last minute, start meal planning. List your weekly meals, make a shopping list, and stick to it. Batch cooking and freezing meals can save time and ensure something is ready on busy nights. So, stop opening the fridge, look at it for 5 minutes and then jump into the ordering app.
5. Negotiate Bills
Yes, you can negotiate your bills. Call your service providers — cable, Internet, phone — and ask for a better deal. The worst they can say is no, but the best they can say is yes, which means more money in your pocket. If haggling is not your thing, there are even apps that do it for you, check them out.
Before you call, do some research to see what the competition is offering. Mentioning a competitor’s lower price can be a powerful bargaining chip. Be polite but firm, and don’t hesitate to ask for a supervisor if the first agent can’t help. Make them nervous or even sweat a little. You will also get your revenge for all those times they called you to advertise. Yes, I can be a little vindictive.
Also, review your insurance policies annually. Shop around for better rates on auto, home and health insurance. Combining policies with a single provider can often result in significant discounts.
6. Buy Generic: Because No One Will Know (Or Care)
Brand loyalty is great for business, but terrible for your wallet. Look for generic brands whenever possible. The only difference you will notice is the money you save. Trust me, your dinner guests won’t know if the pasta is a fancy Italian brand or a store brand on sale. Remember, you are an Alfredo chef.
When it comes to medications, food, and household products, generic versions often offer the same quality as name brands at a much lower cost.
At the grocery store, try generic brands for staples like rice, pasta, and canned goods. Many stores offer a satisfaction guarantee, so if you are not satisfied with the generic version, you can usually return it for a refund.
7. Use Cash Back Apps Because It’s Literally Free Money
Try using apps that give you cash back on your purchases. Sign up for a few and watch the savings roll in.
Apps like Rakuten, Ibotta, and Honey can help you earn cash back on your everyday purchases. For grocery shopping, consider using Fetch Rewards or Checkout 51 to get discounts on items you’ve already purchased.
Use these apps in combination with a rewards credit card to maximize your earnings. Be sure to pay off your balance in full each month to avoid interest charges that can quickly wipe out your savings.
8. Cut Down on Utility Costs
Reducing energy costs can be as simple as turning off lights when you leave a room, unplugging appliances when not in use, or taking shorter showers. You’ll save money and help the planet at the same time. Double win!
Invest in energy-efficient appliances and bulbs. Even smart bulbs and plugs put you in control of energy savings. They may cost more up front, but they will save you money in the long run with lower energy bills. Consider using a programmable thermostat to better control your heating and cooling costs.
Weatherize your home to reduce heating and cooling costs. Simple fixes like caulking windows and doors, adding insulation, and using draft stoppers can make a big difference. If you live in an apartment, try to rent on the middle floors where it is easier to heat the house.
9. Make a Shopping List
Impulse buying is the number one enemy of savings. Make a shopping list before you go to the store and stick to it. Avoiding those tempting aisles full of things you don’t need can keep your budget intact and your home clutter-free. So don’t take the kids. Just kidding (or not).
Plan your shopping trips around discounts and coupons. Use apps like Flipp to find the best deals at your local stores. Stick to your list to avoid buying items on a whim. If you see something you think you need, give it a 24-hour cooling-off period before buying it. Most of the time, the impulse will pass and that 100-foot garden hose won’t seem like such a necessity.
To avoid the temptations of the store, consider shopping online. Online shopping allows you to easily compare prices and avoid the temptation of little money traps strategically placed near the checkout.
10. DIY Whenever Possible
Before hiring a professional, see if you can tackle some projects yourself. The Internet is full of tutorials on everything from fixing a leaky faucet to building your own furniture. Who knows, you might discover a hidden talent and save money in the process.
Just don’t buy tools from the hardware store for more than the cost of the repair. You’ll realize that’s nonsense when you burst the pipe and it’s too late. Do the math in your head first.
YouTube is an invaluable resource for do-it-yourselfers, offering step-by-step instructions for countless projects. Start small with tasks like basic home repairs or creating simple decorative items. As your confidence grows, you can take on more complex projects.
DIY doesn’t have to be limited to home repairs. Consider making your own cleaning products, gifts, or even beauty treatments. But be careful, don’t try everything you see, and don’t ask people to call you Heisenberg.
Final Thoughts
Saving money doesn’t have to be a boring exercise or a deprivation. With these tips, you can tighten your budget without feeling like you’re living in a financial prison.
Remember, every little bit helps, and over time these small changes can add up to significant savings. So, reach your financial goals with confidence and maybe even a little humor. After all, saving money sounds like a chore, but the end result will always work in your favor.