How to Save Money: Best 12 Tips

Save Money

Need to save tens of thousands of dollars for a down payment on a new house or car? If not, perhaps you simply want to start building an emergency fund so that unexpected bills don't put you in such a bind.

What is the problem? You have hard time-saving money. Your savings account balance never seems to grow.

Here's some good news: saving money isn't as difficult as it appears. It's all about taking baby steps, having goals, and being willing to make some sacrifices.

Use these money-saving ideas to come up with new methods to save money in your everyday life.

1. Set Savings Goals

One of the most efficient ways to save money is to visualize what you're saving for. Set saving goals and a timeline to help you save more easily if you need incentives. Want to buy a property with a 20% down payment in three years? You've set a goal for yourself and calculated how much money you'll need to save each month to achieve it.

2. Prioritize

One of the most straightforward strategies to increase your savings? Before you make a purchase, consider whether the money could be better spent on a down payment on a house, a lump sum to help you buy your next automobile or a boost to your emergency fund.

When you pose this question, according to Nick Disney, owner of the real estate company Sell My San Antonio House in San Antonio, it becomes much easier to save money.

Put the money you would have spent on a $5 latte into your savings account. Do you need another t-shirt? Put $15 in your savings account.

3. Eliminate Your Debt

If you're trying to save money by budgeting but still have a lot of debt, start there. Still, have doubts? You'll quickly realize if you add up how much you spend on debt servicing each month. After you've stopped paying interest on your debt, you may easily put that money into savings. A personal line of credit is one way to consolidate debt and pay it off more quickly.

4. Save regularly

Set up a monthly automatic transfer from your checking to your savings account or have a portion of your paycheck put directly into your savings account.

5. Separate wants from needs

Is that 42-inch flat-screen television necessary? When money is scarce, only spend what is essential.

6. Try lowering your energy bill

Turn off all appliances and lights while they are not in use. Invest in energy-efficient light bulbs. When possible, use a fan instead of air conditioning or a sweater instead of turning on the heat.

7. Stop Smoking

Quitting isn't easy, but if you smoke a pack and a half a day, you'll save about $3,000 a year if you quit.

8. Pack Your Lunch

Finding everyday savings is a simple money-saving strategy. If eating lunch at work costs $6 but bringing lunch from home costs only $3, you can save $1095 in an emergency fund or contribute significantly to a college or retirement fund over a year.

9. Having fun vacation around the house

Instead of spending thousands of dollars on international flight tickets, seek entertaining holidays in your backyard. If you are unable to travel the distance, seek inexpensive flights in your area.

10. Cancel automatic subscriptions and memberships

You're probably paying for Netflix, Spotify, Amazon Prime, etc. Any subscriptions you don't utilize regularly should be canceled now. Also, when you make a purchase, make sure to turn off auto-renew. If you cancel it and realize you can't live without it, consider resubscribing—but only if it fits into your new, more realistic budget.

11. Cut The Biggest Expenses

You can reduce your monthly expenses by selling an expensive car and replacing it with a less expensive one (or by doing the same with a home). And once you've done that, you'll be able to significantly increase your savings.

12. Cut down on take-out ordering

Even if the meal isn't particularly costly, repeating it regularly might quickly add up. Once a week, a $10 pizza will cost you almost $500 in a year!