Are you looking to save money, but you’re not sure where to begin? We’ve got you covered. Here are 7 methods of saving money you can start doing today.
1. Review your current monthly spending and create a budget
Go through your bank and credit card statements and determine how much you currently spend on necessary and discretionary expenses. You may find this review to be eye-opening. Maybe you’re spending more at restaurants than you realize or those subscription services are all adding up.
2. Try the 50/30/20 rule
Once you’ve reviewed your spending, you’ll need to set a budget. You can find many budgeting apps that will help you set categories and track expenses.
One popular budgeting method is the 50/30/20 rule. This method divides your monthly budget into 3 portions—50% of your income goes towards your needs, 30% goes toward your wants and debts, and 20% goes into savings.
How does it work? You take half of your take-home pay each month and set it aside for needs—rent/mortgage, utilities, insurance, and groceries/essentials. Then 30% of your take-home pay goes toward your entertainment and wants budget—eating out, subscriptions, shopping, etc. Then you’re left with 20% to save each month.
Variations: If you can’t quite do 50/30/20, there are variations you can try:
70/30/10: With this method, 70% of your income goes toward essentials, 20% toward wants, and 10% goes into savings.
60/20/20: 60% of your income goes toward essentials, 20% toward wants, and 20% toward savings.
Choose a method that works for you and your current budget.
3. Set future goals
Set specific goals such as “I want to save $5,000 for retirement by the end of this year.” You’re more likely to stick to your goals when they’re specific rather than vague.
Related reading: How to meet your financial goals in 2025
4. Cut out things you don’t need
This may mean canceling some of your monthly subscriptions. It may mean going without cable or getting a less expensive plan. You don’t have to cut everything, but you may find that you don’t need as much as you thought.
5. Shop for lower costs on your entertainment and essentials
Check with your cell phone, internet, and cable providers and see if there’s a cheaper plan you can switch to.
You can also shop around for better rates on car and homeowner’s insurance.
6. Look for cheap entertainment
Check out sites like Eventbrite to see if there are free or low-cost events happening in your community.
Check the bulletin boards at libraries, coffee shops, and other businesses you frequent. There may be crafting nights, free live music, and other entertainment.
Look for free or discounted days to museums.
Google free things to do in your city.
7. Consolidate your debt
You may be able to get a lower interest rate and save money if you consolidate your high-interest credit card debt with a personal loan. You may also be able to transfer balances to other credit cards with a low introductory APR.
Final thoughts on savings techniques
And there you have it—7 easy ways you can save money. If you implement these methods, you’ll see the savings start to pile up. Get started today!
