12 Tips to Save More Money in 2021
By: Ralph Tyndall
Tags: Lifestyle, Personal Finance, Money, Saving, Business

Saving. To some it comes naturally, and to some the thought of putting together a savings plan sends shivers down the spine.

If your parents didn’t communicate the importance of having a healthy savings account to you then the year 2020 likely did.

I’ve compiled 12 simple tips to help keep more money in your pockets in 2021, and keep less of it from vanishing before your eyes.

1. Set Up a Savings Account

Ok I know this one sounds obvious, but if you are looking to save money and you don’t already have a separate account designated for just that, then it’s time for that to change! It’s hard to accomplish your savings goals when you are keeping your day-to-day spending money and savings in the same account.

If you are currently operating out of a single checking account then it’s time to set up a designated savings account, preferably one that pays a moderately high-interest rate.

With today’s interest rates (not great), look for an account offering at least 0.5%.

2. Do it Automatically

Now that you have your savings account open it’s time to start building it up. The easiest way to do this is to decide what percentage of your income you want to deposit in your savings account each pay period. Typically, if your employer offers direct deposit you can have your payroll automatically deposit a portion of your paycheck into your savings account come pay day.

The easiest way to save is to have the money locked away before you have a chance to spend it!

If your employer doesn’t offer direct deposit, or if your income is not as regular, you can also use an app to automatically transfer money to your savings account at a determined cadence.

3. Cancel Unnecessary Subscriptions

With the rise of the subscription model, it’s not difficult to accumulate a number of recurring non-essential expenses. Whether it be a streaming service (looking at you Netflix), a meal kit delivery program, or a clothing subscription box, these recurring expenses can really eat into your monthly budget $10 at a time.

Take a look at all your non-essential recurring expenses and decide which ones you can live without. If you really can’t live without any of them, see if you can adjust your subscription/plan to save a few bucks.

4. Negotiate your Fixed Expenses

Some of your monthly expenses are necessary. These include things like utilities, internet, and you phone. Oftentimes, these companies will find ways to slowly increase the price of these necessities over time. If you’ve noticed any of these expenses have crept upwards, why not try giving them a call to see if you can negotiate a lower rate?

Internet companies are especially guilty of this practice. Many times when you sign up for their service you will notice in the fine print you are actually getting charged an “introductory rate” for the first 12 months, and after the first year is over your monthly payment increases. It never hurts to call your provider and ask for the rate to be lowered.

Just be up front and kind.

5. Use a Rewards Card

Credit cards that offer rewards can be a great resource for extra savings when used responsibly. It is never wise to use a credit card just to rack up points, but if you are using it to pay for expenses you would incur anyway, and are diligent to always pay it off, then it can be a great way to save some money.

Many rewards cards will allow you to convert your points to gift cards that can be used for other expenses or gifts around the holidays. Alternatively, a lot of cards will let you convert the points to “cash” and use the cash as a credit on your monthly bill.

6. Hit the Kitchen

I know it can be a lot easier to order takeout from your favorite neighborhood restaurant, but those tips and delivery fees really add up.

Take the time to plan your meals for the week and designate a day to get all of your grocery shopping done. You’ll save a lot of money cooking at home and eating leftovers. You may even discover a talent you’ve been hiding from yourself!

The idea of cooking every night can be daunting. Reward yourself with a night out every week or two as your budget allows.

7. Create a Budget

A lot of people do well with a plan. Take a moment to sit down and create a budget. Consider your monthly income and fixed monthly expenses. Tailor your variable expenses based off of what is left over. Once your budget is set — stick to it! You will find out you are no longer over spending as much as you may have previously.

Don’t forget to designate a portion of your income to go to savings!

8. Monitor your Transactions

This one is easy in the digital age we live in now. Using your online bank or bank’s mobile app, periodically review your purchase history. You will find that just reviewing your purchases will help identify areas of spending that may be sacrificed.

Five dollars may not seem like much for a cup of coffee, but when you scroll past 3–4 of those a week you can really start to see how it adds up.

9. Make it a Game

If you are competitive by nature this one’s for you. Challenge yourself periodically to keep your savings goals top of mind. An example of this would be to choose a specific amount, such as $100, and see if you can go a week without spending over that amount.

You may be surprised at how you become a savvy spender when competition is involved.

10. Create Savings Goals

Why are you saving? Saving becomes a lot easier when you have a goal you are working towards. If you have a big goal, such as buying a house or retirement, try breaking that goal down into several smaller goals and be sure to celebrate each milestone!

If you’d like, share these goals with with someone you trust. It can be helpful to have a reliable confidant hold you accountable and celebrate your victories.

11. Minimize Transportation Expenses

Cars are one of the largest expenses for most people aside from housing. If you live in an urban environment that is pedestrian friendly try walking more. You will be surprised how much money you save on gas and parking, and it’s a free workout!

Make sure your vehicle insurance is right for you. You can oftentimes save a significant amount on your monthly premium by adjusting your coverage. You might especially want to check this if you have recently paid off your car. Many lenders require a certain level of coverage on your car when you are borrowing, which can be adjusted once the vehicle is all yours.

12. Coupons

No they’re not just for your grandparents. Use them. And if you’re not searching the internet for coupon codes prior to buying anything online, what are you doing?

Heard of Honey?