25 Ideas For How To Save Money Each Month

How to save money each month

It’s incredible how simple changes to your finances can lead to big savings. Changing your money habits and cutting expenses wherever possible makes it much easier to save money every month. You may think those little purchases aren’t adding up, but in reality, it’s crazy how much money you end up spending in the long run on things such as your daily latte. For example, saving $3 a day for a year adds up to $1092! So you see, learning how to save money each month on even small items will bulk up your bank account fast!

Benefits of saving money monthly

Like any goal, it’s easier to achieve when you break it down into smaller attainable goals. That’s why learning how to save money each month will help you with your big savings goals. For instance, let’s say you have a goal to save $10,000 in a year.

That can be a pretty overwhelming goal when you look at that big number! However, breaking it down into monthly goals makes it less intimidating and helps you focus on the monthly amount instead.

So, rather than focusing on $10,000, you will divide that amount by 12 to get the monthly amount you need to save. $10,000 divided by 12 equals $833.33 a month. To simplify it further, you can break it down by the week, which will be $208.33 weekly. This shows how focusing on smaller goals can teach you how to save money monthly.

25 Great ideas for how to save money each month

Get some inspiration on how to save money every month with these top 25 ideas.

1. Reduce your mortgage payment

One of the biggest monthly expenses is your mortgage payment or rent. In fact, the average American spends about $1,600 a month on housing! You can save quite a bit of money by reducing your mortgage payment. The easiest way to do this is to get a roommate because you can split the payment with your roommate and drastically reduce your cost of living.

Another way to reduce your mortgage payment is to refinance your existing mortgage at a better rate, resulting in a lower payment. However, you should only consider refinancing if you will stay in your home for a few years to cover the closing costs. Otherwise, you will just waste money.

2. Downsizing your living space

Many people are learning how to save money each month by downsizing their living space. Opting for a smaller house or apartment results in lower monthly payments along with fewer utility costs. The smaller space means less electricity, maintenance and can be paid off faster too.

3. Cancel subscriptions

How many paid subscriptions do you have? Let’s say you have three that cost around $9.99 each. That’s about $30 a month, which adds up to about $360 in a year. It’s the small expenses that may seem like no big deal, but that’s extra money that can help build your emergency fund or can be used towards a vacation. The key to how to save money each month is cutting your budget wherever possible, no matter how small the amount.

4. Shop at discount grocery stores

Being savvy about shopping can save you money every month, and shopping at discount grocery stores can add up to significant savings. Stores such as Aldi’s, Sharp Shopper, and the Family Dollar store are great places to shop that have reduced costs on most items.

If you’re super frugal, you can shop at different discount stores for various items to maximize your savings further!

5. Switch insurance companies

Are you always hearing insurance commercials offering to save you money? Well, shopping around for the best insurance rates can save you a chunk of cash. Check out a few different options to see which company offers the best type of insurance you need at the best rate.

6. Get organized

Have you ever paid a bill late because it was stuffed somewhere it wasn’t supposed to be? Getting organized can actually save you money because it will prevent you from paying bills late. Late fees are expensive, and once a month is one too many! It can also be a huge time saver because you aren't constantly searching for lost items, and you know the saying “time is money.”

7. Pay off debt

Debt is costly, especially high-interest credit card debt. The interest can rack up hundreds to thousands of dollars a year! Paying off debt can save you a bundle because you aren't wasting money on interest. One of the easiest ways to tackle credit card debt is using the debt snowball method.

This method helps you pay off the card with the least balance first, so you get that feel-good feeling from accomplishing one of your goals! Then you proceed to the next card and continue until you are debt-free!

8. Find free things to do to save money each month

It seems like everything is getting more and more expensive, even with simple things such as entertainment. Hitting the movies can cost about $25 for two people, and that’s just the price for tickets! Finding fun, budget-friendly things to do can save you quite a bit of cash.

Think parks, museums, lakes, and other fun things you can do. If you need some ideas, just Google free things to do and input whatever city you are in, and you’ll have all kinds of suggestions!

9. Use a spending journal

Ever wonder where all of your hard-earned money was going? Start using a spending journal to track your spending habits to help you know where your money is going. This will help you figure out where and why you are spending your money and help you cut out excess spending because you will be documenting every transaction. This will result in you saving money every month!

10. Shop secondhand

Did you know you can save up to 50% off retail prices simply by shopping second-hand? Clothing, electronics, jewelry, and other items can be found at a fraction of the cost at Pawn Shops and Thrift Stores. You can also find items on eBay and Facebook Marketplace. This even comes in handy to save money on things such as back-to-school shopping too!

11. Buy in bulk

Another simple way to save is to buy certain items in bulk. Things like toilet paper, paper towels, cleaning supplies, and canned food can be bought in bulk, making them cheaper. Of course, be careful if you try to buy perishable items in bulk because they will spoil quickly. You can freeze some foods to keep them preserved longer too.

12. Save money each month by meal prepping

Do you find yourself ordering take-out because you don’t feel like cooking? You’re not alone. In fact, Americans waste over $1,800 a year on unused food. Yikes! Meal planning can prevent you from wasting money every month on spoiled groceries because your meals will be prepared in advance.

Meal prepping saves time and helps you stick with your monthly budget too. Pick a day, prepare your meals for the week, and see how it simplifies your life and grows your savings.

13. Pay in cash

It may come as a surprise but paying with cash can actually help you curb your spending. “The pain of paying” kicks in when you hand over cash, more so than when using a debit or credit card. So much, in fact, some have decided to master their budget with the cash envelope system to save even more money!

14. Use less gas

Rather than cruising around all week, why not schedule all of your errands on the same day to save on gas. This results in less money going into your gas tank and less wear and tear on your vehicle.

15. Reduce your electric bill

There are several ways you can slash your electric bill. Unplugging appliances can stop phantom electricity, which is where electricity is still being used even when turned off. Of course, turning off lights and appliances when you’re not using them is a huge savor too.

Another way to save even more is switching to fans instead of using air conditioning when possible. These are simple adjustments to make that can help save money.

16. Skip the soda

Buying soda every week can increase your grocery costs. A 24-pack of soda is a little over $8 if you purchase a pack every week; that adds up to over $400 a year! Just think, you could take a nice little weekend somewhere instead. Switch to water to save money and improve your health too!

17. Declutter

Clutter is not only overwhelming; it actually costs you money! Whether you are renting a storage unit or storing unused items in your home, it costs you money to keep it. The average cost to accumulate clutter in your home is roughly $10 a square foot.

You can save money by ridding yourself of all that excess stuff. Also, you can sell your items to bulk your bank account even more!

18. Automate your savings

It’s too easy to make excuses not to save, and one of the biggest ones is that we simply “forget” to deposit money into our savings accounts. That’s why automating your savings is an easy way to save money every month. Set up an automatic transfer of a specific amount to be transferred every week into your savings account. You won’t believe how fast it adds up!

19. Use cash-back apps

Be a savvy shopper and use cash-back apps to save money. Apps such as Rakuten, Ibotta, and Fetch Rewards are great for finding deals and getting rewards. Simply using these apps can save you cash when you’re shopping.

20. Workout at home

You can still get in great shape and skip the gym membership. Exercising at home is easier than ever, and you can even find an online trainer on a budget. There are tons of workout videos on YouTube you can do for free too!

21. Save on prescriptions

Whether you have health insurance or not, you can save money on your monthly prescriptions using apps such as GoodRX. For example, my mom has health insurance but still asks the pharmacy to run her GoodRx card to see if it’s cheaper paying out of pocket. She saved over $300 off one prescription! This is a super simple way to save money every month.

22. Switch your cell plan

If your phone plan is hitting your wallet hard, it’s time to switch. Shop around and see what promotions companies are offering. Changing companies can result in big monthly savings!

23. Price compare when shopping

Thanks to smartphones, it’s easier than ever to compare prices when shopping, especially if you’re shopping online. Rather than hitting that buy-it-now button, check around for the best deal to save big bucks.

Be sure to do this for traditional shopping, too, especially for larger purchases. Simply checking different stores can lead to huge savings.

24. Use a shopping list

Have you ever heard you shouldn’t go shopping when you’re hungry? Well, the same goes for shopping without a list because it's too easy to impulse shop when you don’t have a list to stick to, and that can lead to overspending. If you’re like me, you also forget key ingredients to your recipes and end up with half of what you need. Make a shopping list can have a huge impact when it comes to how to save money every month.

25. Start couponing

Couponing is a simple way to save money. If you’re not up for traditional couponing, you can actually clip digital coupons and load them to your store discount card. Doing this will double your savings on your grocery bill every month because you will get the store card discount and the additional savings from your coupons.

Bulk your bank account by learning how to save money each month

Learning how to save money monthly results in you being more frugal and bulking your bank account. It will also prevent you from overspending and racking up debt because you will focus on saving and working towards your financial goals. Be sure to create a monthly budget and use these tips to save as much as possible every month.

You can also stay motivated with your savings goals by listening to financial podcasts, reading blogs, and watching videos. Don't forget to check out our FREE financial courses and worksheets too!

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