How To Save Money

This article may contain Affiliate links. I might earn a small commission if you make any purchases through my links and it comes at NO cost to you. For more information, please read my Disclaimer page.

An art, science, or just common sense – saving money and finding different ways to save money is hands down one of the pillars to financial independence.

Today, if you google “how to save money,” you’re going to find tens of articles sharing hundreds of ideas on saving money.

I’m sure you’ll find something new in this article that you can incorporate in your life.

This could also change the way you think about some of the savings options out there. Remember, the more you save, the more money you have to pay off your student debt, to invest, and for emergencies.

An extra $200-$300 a month can go a long way toward household expenses or paying off debt or even childcare.

The important part is you having the mindset to make that shift and look for alternatives to bring in additional income.

So, let’s take a look at some of the ideas to save money. Also, I have categorized them for your benefit into the following buckets:

>> Personal Finance
>> Home
>> Auto
>> Shopping
>> Food
>> Family
>> Travel
>> Entertainment

Personal Finance

Open More Than ONE Bank/Investment Account

You need to take advantage of the “new account” offers from various banks out there. Because of the competition and increased supply, banks are coming up with innovative offers to lure new customers.

Open up at least a couple of bank accounts (with regular checking and savings accounts) for your day to day needs.

But, you can easily have more than 3-4 investment accounts with different brokerages to save money.

You see, each of the banks/brokerages, have their fee structure, maintenance fees, and account management fees. Also, they offer perks in terms of lower commissions on trades.

Some would even offer a limited number of trades you can place through them for free (this is huge!)

In other words, do not settle for one bank as you might be losing out on saving money.

Save To Build An Emergency Fund

Building an emergency fund is key to saving money.

How?

If you do not have an emergency fund, in case of emergencies, you will have to dip into your hard-earned savings to cover expenses. This will lead to reduced savings instead of the other way around.

If you haven’t checked out my other article on how to build an emergency fund, please do so. It will guide you through the process of building an emergency fund.

Move One-Time Income To Savings

If you receive a one-time additional income (something you were either not expecting or did not plan for,) move the money to a savings account or emergency fund.

This will help you gain some cushion in terms of your savings. It will not force you to dip into your investments to cover a significant expense.

Follow a similar approach if you receive an inheritance or a windfall. Move part of the money to a “money-market” account – some to a savings account, some to investment accounts and college funds.

You will be at peace when you have cash in a dedicated account, so there is no confusion where to go when you need extra money.

Save For A College 529 Plan

Another smart way is to contribute to the 529 college plan consistently. You can save money by starting early and utilizing the power of compounding.

The earnings from the 529 plan are not subject to federal tax and in most cases not subject to state tax – ONLY if the expenses are for education purposes.

If you have or are planning for a kid(s), the earlier you start contributing toward a 529 plan, the better.

Pay Your Credit Card Balance In Full

Paying off your monthly credit card balance in full is a single most crucial aspect of financial independence, in my opinion.

Why?

If you do not pay the balance in full, you incur interest charges on the purchases.

In the next monthly cycle, you will have to clear not only the current month balance but also the remaining balance from the prior period PLUS the interest charges.

Paying just the minimum payment due is NOT enough and is one of the myths of having a credit card that you need to understand.

Home

Refinance Your Mortgage

Refinancing your mortgage is one of the best options to save money out there in my view. The amount of money you save in the long term is significant.

You should always be on the lookout for better rates to refinance your mortgage.

When the interest rates are lower, refinancing is generally at its peak. This leads to competition among mortgage lenders and will result in better options for homeowners.

You can leverage this market demand and supply and get a better refinance rate and save significant $$ monthly.

Home Insurance

In addition to refinancing the mortgage, you should also reach out to your current insurance provider for better rates.

Because of the competitive insurance market, insurance companies will work with you and usually go the extra mile to make things work.

They also have BUNDLE options: meaning if you have your auto insurance with them, they offer discounts to add on (bundle) home insurance.

Most of the insurance companies offer bundle discounts and you can easily save money with this option.

Electricity

As a developed nation, power is generally cheap in the USA. But, depending on your usage, the monthly bills can add up.

Besides, if you have a swimming pool, the monthly electricity bill could be upward of $300, especially in warmer months.

A smarter option to save money would be to go solar. Having a solar-powered home saves a lot of energy and money. If your usage is high, it’s a perfect option to save money.

On average, the savings over 20 years is approximately $20,000 according to a solar marketplace EnergySage.

Revisit Subscriptions

With the digital age, we now have more subscriptions to apps and streaming services. In a futuristic world, it’s more likely that we see an upward trend.

So, now more than ever it is essential to revisit the subscriptions on a semi-annual basis and at a minimum on an annual basis.

If you still have cable along with other streaming services like Netflix, Amazon Prime, Hulu, Apple TV, and others, you are paying a fortune.

You can easily save some money by reducing the number of subscriptions.

Auto

Leasing Your Car/Truck

Leasing a car is a great option to save money. It offers greater flexibility in terms of moving on to the next car and you don’t have to worry about the car value depreciating (reducing).

A car/truck is a depreciable asset – meaning their value will always reduce after the minute you buy and drive off the dealership.

So, the question is why own the vehicle if you can literally lease (rent) it?

Leasing options have some fantastic perks like lower down payment, maintenance included, and lower monthly payments vs. buying a car.

A smart way to save big $$ per month would be to lease a vehicle vs. buy.

The BEST PART – you still get an option to buy the same car at the end of the leasing term.

Gas Station Rewards Membership

Have you considered joining a rewards program offered by your local gas station?

If not, please do so as this saves a good amount of dollars on an annual basis.

Big wholesalers like BJs and Costco offer membership programs where you get gas almost at cost (it is at least 20-30 cents/gallon cheaper vs. others)

Gas station chains like Cumberland Farms, Shell, and Sunoco (NOT affiliate links) offer rewards programs where you can save on both gas and groceries (through coupons.)

I am a BJs member and save a good chunk on gas.

 

Auto Insurance

Similar to home insurance, the auto insurance industry is competitive. This pushes the insurance companies to be innovative and offer better rates versus the competition.

You should always look to get better rates for your auto insurance. Also, if you have a mortgage, you can negotiate a bundle package to avail further discounts.

Saving on auto insurance provides a good chunk toward your monthly savings fund.

The key here is the timing of when you reach out to negotiate. So, when should you call your insurance company?

Once you get your renewal notice, that is the best time to step out in the market and shop around. Renewal notices are usually mailed 30-60 days in advance so you should have enough time.

Shopping

Rewards Programs

Pretty much every retailer has a reward program that you can sign up and receive free coupons.

These free coupons, special discounts on your birthdays and anniversaries, and clearance sale offer a lot of opportunities to save money.

Pick your favorite brands and sign up for everything they have to offer in a rewards program. Also, shop at retail outlets as much as possible.

Retail outlets offer some of the best sales and discounts as opposed to a regular store (of the same brand) in a mall setting.

Also, shop less but shop smart – meaning, try to shop in advance instead of buying a winter jacket during a blizzard. You will end up paying less if you plan and save money.

Amazon Prime

As of March 2019, Amazon Prime (NOT an affiliate link) had approximately 103 million customers. The population of the USA as of 2018 was approximately 328 million.

So, approximately 1/3rd (or 33%) of the United States is a prime member of Amazon.

Let that sink in for a moment…….

You can save a lot of money with Amazon prime membership. If you shop online, I’m sure you shop on Amazon. The most significant advantage with prime membership is – FREE 2 day shipping!

So right off the bat, you save on shipping. Along with prime membership, you get access to numerous benefits with prime video, prime music, prime items, discounts/coupons for prime members and free kindle books for prime members to name a few.

Amazon Credit Card

Amazon offers credit cards in partnership with VISA. The card offers more cashback to PRIME members when they use the VISA card for purchases.

Below are the benefits as of July 2019:

— 5% cashback for PRIME members
— 3% cashback at Amazon.com and Whole Foods
— 2% cashback at participating restaurants, gas stations, and drugstores
— 1% cashback on all other purchases

The more you shop through the Amazon credit card, the more cashback you earn so you end up saving a lot of money.

Retail Shopping

If you shop at retail stores or outlets like GAP, Calvin Klein, Nike, Tommy Hilfiger, or other brands, you can save money.

How?

Sign up for their rewards program that offers regular discounts to members, and some offer new member discounts too.

A lot of brands also offer discounts on your birthday and anniversary, and some even offer student discounts.

So, you can shop for your favorite brand and at the same time save money.

Food

Fast Food Chains

Chains like Subway, Qdoba, Moe’s, and McDonald’s have rewards/loyalty programs. After a certain number of meals, they offer a free drink or food item depending on the points you’ve accumulated.

This is a great way to both enjoy your food and keep earning points so you can redeem for free and save money.

Make sure you sign up for the rewards program of the food chains you visit regularly and save some money.

Coffee

On average, it costs around $2 – $2.50 for a medium coffee. If you buy coffee from outside every day, that is approximately $14 – $17.5 per week, which is $728 – $910 per year.

Take a moment and revisit that number…

That is a lot of money for coffee. To save money, reduce the number of times per week you buy coffee from outside. The best way to still enjoy the brand of coffee you like is to buy the ground coffee packs and brew it yourself at home.

It will save you a fortune and you can still enjoy your brew.

Also, coffee giants like Starbucks and Dunkin have their rewards program. Do sign up for those as you can accumulate points on your purchases and redeem for a free coffee/food item and save money.

Meals

If you buy daily lunch from outside, on average, that is around $8/day, which is $40 per week and $2,080 per year.

See if you can brown-bag your lunch and save money. The savings from just brown-bagging your lunch could help you pay off your student loans faster or take care of the yearly auto expenses or help you invest in stocks.

The possibilities are endless on how you can use that extra cash and help yourself.

Similarly, reduce the number of times you have dinner outside in a week. You can save that $20 – $40 and put it toward your savings fund.

Groceries

Grocery stores and chains regularly have some promotions or discounts available. Most of them also have a rewards program that you can sign up and save money.

The stores also have affiliation with other vendors (gas stations and restaurants) and offer discount coupons to its members.

BJs, Sam’s Club, Costco, Wegmans, Whole Foods (to name a few) offer rewards & loyalty programs to help you save money.

Family

Gifts

As you know, buying gifts for family and friends can sometimes turn into an expensive event. Your budget can quickly get stretched without you having any control of it.

To save money, plan your gifts in advance.

For example, if you know you have to buy 5 gifts for your August birthdays, buy them when there are long weekend discounts or during special events like Amazon Prime Day.

You can do the same for anniversaries, graduation and bachelor parties, engagement ceremonies, weddings, and any other event where gifts are shared.

Trust me, your budget will thank you, and you won’t be stretched thin.

Donate OR Sell

Another smart way to save/make money is to either donate or sell your household stuff.

If you look around your basement, garage, or storage room, I’m sure you’ll be able to find stuff you don’t need.

You can donate the stuff you do not need to thrift/goodwill stores. The store will provide a receipt with the equivalent $ amount.

And the BEST part? In some cases, your donations are tax-deductible. See IRS guideline here

OR

You can sell your stuff on eBay, Facebook Marketplace, or any other platform, or even organize a Garage sale.

The money you earn can go toward your savings fund, and that’s a great feeling!

Travel

Traveling domestically or internationally is like running a project in itself. The planning, research, bookings, baggage and a slew of other considerations can be overwhelming.

So, how do you save money when there is so much stuff that requires payment staring at your face?

To be efficient, plan & research ahead of time especially for airline tickets. For the most part, this is a significant chunk of your travel expense.

Once you have your dates and airline tickets booked, research for hotels/resorts/rentals and book.

Look for stay and special packages that combine 2 or 3 of the amenities during your stay.

Advance planning and booking for airline tickets and accommodations will help you save good money.

Entertainment

Movie Theaters

You can avail discounts at movie theaters by signing up for their rewards program. A lot of theaters offer some sort of loyalty/rewards program these days.

Once you have enough points in your account, you can redeem for free food/drinks items.

Also, you can redeem points toward your future ticket purchase at some theaters.

Concerts

Saving on concert tickets requires some effort on your end. Usually, the tickets are made available in batches. The sooner you buy the tickets, the lower the price.

You can save money by looking for exclusive promo codes online or directly booking through the concert’s website.

Also, the local radio stations give away free tickets so be on the lookout.

Another approach is to check if the concert has an affiliation with local communities or with specific organizations like AAA. Sometimes, the shows will even tie-up with local businesses and offer discounts.

Summary

There are numerous ways to save money, and with a little effort on your end, the $$ can add up.

A lot of options discussed here require a one-time effort on your end, and you can reap the benefits for a long time.

To get into the habit of saving money is a choice you need to make if you want to be financially independent sooner than later.

Once you make that choice, having the discipline to incorporate that lifestyle for days, months, and years will ultimately change the direction of your financial health.

You can start incorporating most of the above options into your life TODAY! So, what are you waiting for?

[convertkit form=908339]

How do you save money? Please share your thoughts, tips, and ask away any questions in the comment section below!