17 Proven Ways To Save Money
By: Vellis Weathers
Tags: Money Management, Personal Finance, Financial Literacy, Financial Literacy Tips, Saving Money

Saving money is a crucial part of any budget, but it can be hard to know where to start. In this article, we will give you 17 proven ways that will help you save more and make your dollar stretch further.

Photo by Josh Appel on Unsplash

1. Use an automated tool

A handful of new apps and automated bank accounts are popping up, promising to help you save more money. They’ll automatically transfer a certain amount of your paycheck into savings or other accounts each month- all while charging lower fees and helping you avoid the temptation to spend it.

2. Count your coins and bills

Even when you’re on a tight budget, saving can seem impossible. We recommend emptying your pockets, purse, and wallet into a container. Start collecting that extra change to add to your savings fund instead of spending it!

Save the money you would have spent on a new outfit for just two weeks, instead of spending it now. After those two weeks, ask yourself if that outfit is really worth what your savings could be earning in interest. In most cases, we’re confident our answer will be no!

When you want to spend less money, take cash and spend it. It is harder for your fingers to part with a piece of paper than it is to swipe a piece of plastic.

3. Prep for grocery shopping

Save money on groceries by using coupons, shopping at the right time of day (afternoon), and joining a loyalty program that rewards points for each dollar spent.

A great way to save money while grocery shopping is to make a list of what you need before going in so there are no impulse buys or wasted trips up and down the aisles.

4. Order smaller servings at restaurants

Eating out with your friends? Order a side dish instead of ordering an entrée and ask to split the appetizer with your friends. Split entrees or dishes by cutting them into smaller pieces so everyone enjoys more varieties while spending less money!

5. Get discounts on entertainment

To save money on entertainment, go to the library, borrow books from friends and family, and visit your local farmer’s market.

See if you can get a discount at theater performances or concerts by using sites like Groupon for discounts on events in your area. Buy tickets to sporting events early so that they are less expensive than when it gets closer to game day.

Take advantage of days that museums and national parks offer free admission. You may also qualify for discounts based on things like senior status, student status, membership in the military, or more.

With these ideas, you can save money on entertainment while still being able to enjoy your time with friends and family!

6. Map out major purchases

If you know what major purchases, like furniture or appliances, you want to make in the near future, map out their purchase periods so that they happen at discounted prices.

Some stores offer discounts on major appliances and furniture during certain times of the year. Check with your local store to find when these sales happen before making any purchases.

Make sure you research first, though. Don’t buy something just because it is on sale if you are not sure that this version of the item will suit your needs and preferences.

Wait a few days before you buy anything. If you sleep on it and the idea still appeals to you, then go for it!

7. Restrict online shopping

Instead of saving your billing information, force yourself to input your credit card information every time you make a purchase. This forces your brain to think about the purchase and not be able to do it on impulse.

You might also try setting a spending limit for yourself. You can set up alerts or notifications as well so that they remind you when you’ve reached your desired limit.

8. Make your own gifts

Save money by making homemade gifts instead of buying them! Items that are always popular include candles, handmade soaps, and other bath products. Consider inexpensive gift ideas, like an herb garden kit and a gift basket.

9. Lower your car payment

Refinancing your car loan can lower your monthly payments, giving you more money every month to work with.

10. Bundle cable and internet

If you are still paying for your cable service, why not consider bundling? Bundles offer the best deals and include several different types of TV channels for one set price. You may also find that bundles come with Internet service or other live TV streaming options like Netflix or Hulu.

11. Switch your cell phone plan

Cell phone plan rates change and so do your needs. If your monthly bill has gone up, consider switching to a different plan. It is important to make sure that you are on the best and cheapest cell phone contract for you.

12. Monitor your electric bill

Big and small changes in your energy usage can make a big impact on your monthly electric bill. Monitoring your energy usage will help you to be more aware of where and when the switch is happening so that you can take steps to reduce it.

13. Lower your student loan payments

Although student loan payments can seem like a never-ending debt, there are ways to repay your loans faster and save money. One of the easiest things you can do is contact your lender or servicer about lowering monthly payments.

You may be eligible for an income-driven repayment plan that lowers the monthly payments. You will pay less interest on your loan, which means that for a given amount of time, you’ll be paying back more than just what’s owed in principal.

14. Cancel unnecessary subscriptions

Unsubscribe from any subscriptions you don’t need.

It’s tempting to sign up for lots of different services, but sometimes it means that you end up paying for things you’re not using.

Whether the service is Netflix or a gym membership, make sure there are enough benefits before signing on and canceling any subscriptions you aren’t using anymore.

15. Track spending

Record your monthly cash flow by keeping track of what you’re spending your money on.

If you know where the cash is going, it’ll be easier to make better decisions about how much and when to set aside for debt repayment or savings goals.

16. Refinance your mortgage

Getting a lower interest rate on your home mortgage can save you a lot of money over time.

If your mortgage is already at an attractive interest rate, then refinance into a longer-term to take advantage of lower rates and put off paying the closing costs that come with refinancing until later on when your home equity has increased.

17. Set savings goals

Set a clear, but achievable goal. It could be “save $5,500 in my IRA this year” or “pay off all of our credit card debt within the next 12 months.”

If you’re saving for a goal that’s more than one year away, divide the amount to be saved by your current annual salary.

For example, if you want to save $200,000 for your child’s education and earn a starting salary of $50,000 per year then divide 200k/50=4000 which is the number of years that it will take (with no interest).

Use your savings account as a tool rather than an easy option and save automatically, using this bank’s online banking system to set up automatic transfers from your checking account. Automatic transfers are a way to make sure that you don’t have the option of spending your savings when an unexpected expense comes up.