How To Save Money Each Month: 12 Simple Ways

We all want to save money, but let’s be honest — it’s easier said than done. The good news is that there are many effective yet simple ways to save money each month.

12 Easy Ways To Save Money Each Month

When you’re trying to find a way to save money, it’s important to choose a method that you can stick with. You can try out several (or all) of the following ideas until you find the one(s) that work best for you.

1. Establish A Monthly Budget

Making a monthly budget is a great way to save more money. Why? By having a budget, you become more aware of your spending habits. And rather than spending aimlessly, there are parameters to how much you can spend — which ultimately leads to greater savings.

Wondering how to create a budget? Follow these simple steps.

1. Examine your monthly income.
2. Categorize your spending, distinguishing needs, wants, and goals.
3. Track your spending.
4. Audit your budget.
5. Budget for varied and irregular expenses.

To ensure that your budget is helping you save money each month, you’ll need to review it consistently and make adjustments. Your financial habits and goals will change over time, so your budget should reflect those changes.

2. Automate Transfers To A Savings Account

An almost effortless way you can save money each month is by setting up automatic transfers from paychecks to one or more of your savings accounts. Your financial institution can help you do this. Once this is set up, you won’t have to worry about saving on your own; it’ll be something that happens automatically, making it easier to save before you’re tempted to spend the money on something else.

3. Contribute To A High-Yield Savings Account

A high-yield savings account functions like a normal savings account – the only difference is that it pays out much more interest. By opening up a high-yield savings account, your money has the potential to grow much faster based on your set annual percentage yield (APY) amount and the compounding interest. This can lead to greater and greater savings with each passing month.

4. Plan Out Your Grocery Haul

There may be a huge price to pay for strolling down the grocery aisles and buying whatever catches your eye and entices your appetite. On the other hand, if you shop with a grocery list, you can save a significant amount each month on groceries.

Before going shopping, check out ad catalogs for deals at various stores — writing down which items you’ll get and from which store. You could also try using coupons and shopping in bulk.

5. Limit Your Online Shopping

Online shopping can be addictive. With the press of a button, you can spend hundreds without even having to leave your home. This is why cutting back on your online shopping can be an effective way to avoid overspending and, consequently, save money each month.

It can be difficult resisting the temptation to shop online, but your wallet will thank you. Implement these tips to help you limit your online shopping.

• Analyze your motives and know your triggers. Some may shop online out of boredom or impulsivity. Practice self-compassion while finding alternative ways to meet your needs and wants. Identify triggers and avoid them if possible.
• Delete shopping apps and block tempting online sites. It can become an automatic response to open up shopping websites and apps. To avoid temptation, delete them altogether.
• Think before you buy. How many times have you made an impulsive purchase and regretted it shortly after? You can avoid this by waiting before you buy a new item online. If hours and days pass and you still have a genuine need for it, then consider buying it.

6. Try Thrift Shopping

Maybe it’s unrealistic to stop shopping completely. If that’s the case for you, you can try saving money by shopping secondhand. Avoid malls and department stores and check out a thrift store instead. You might have to look harder to find items that fit your taste, but that’s what makes the experience fun.

You might also consider shopping at consignment stores, garage sales, and flea markets. There are even some online sites that sell used clothes for lower prices.

7. Cancel Unused Subscriptions

The cost of monthly subscriptions can add up quickly. By canceling some that you don’t use (or can live without), you can save hundreds each month — which adds up to even greater savings over the course of years. Consider canceling subscriptions for gyms, online gaming, television and music streaming services, magazines, and more that you’re not using anymore.

Admittedly, it can be hard to let go of beloved subscriptions. But, having a helpful tool can make it easier. The Rocket Money℠ app is the perfect way to manage and cancel unwanted subscriptions.

8. Shop Around For Car Insurance Rates

It’s no secret that car insurance can be expensive. By shopping around for the best rate, you can explore all your options. For example, you can look into different policies, levels of coverage, and discount opportunities. Doing so can help with lowering a car insurance payment every month. This can save you a significant amount of money over the months and years.

9. Negotiate Your Cable And Phone Bills

Yes, you read that right. Your cable and phone bills aren’t always set in stone. On the contrary, it’s possible to negotiate with your provider and receive lower monthly rates. Here are some negotiating tips that may come in handy.

• Research your provider and their competitors. Know their respective prices, packages, and terms.
• Be prepared to leave and change providers.
• Cite your history as a loyal customer.
• Be kind, but firm.

But if the thought of negotiating makes you uncomfortable, why not let Rocket Money do the hard work for you? With its amazing bill negotiation feature, it automatically looks for ways you can save on cable and phone bills and does the negotiating for you for a small fee.

10. Search For Discounts Or Free Activities

The cost of recreation and entertainment can seem unavoidable, but there are ways to have a good time without spending (as much) money. With a quick online search, you can find out about free activities in your community. For example, there may be free local museums, parks, festivals and more.

Additionally, many establishments have discounts available for students, seniors, military members, and even teachers and healthcare workers. So before paying full price, be sure to ask about any available discounts.

11. Sell Your Stuff Online

Side hustles — activities outside of your job that make you income — are another excellent way to generate extra income to put toward saving each month. One example is to sell items online. This can be items you no longer use or items you create to sell. You could sell clothing, artwork, crafts, or used household items. Before getting rid of unwanted items (or dismissing your hobbies and talents), try to generate income from them. 

12. Use A Debt Payment Plan

What if you’re drowning in debt and feel that saving money is unattainable for you? After all, when you have large amounts of debt, any extra money you get may go toward paying it off. The good news is that by paying off debt fast, you put yourself in the best position to start saving again.

There are many options available to you. For example, you could use a debt payment plan or a clever method such as the debt snowball or debt avalanche methods.

Monthly Savings FAQs

Here are the answers to some frequently asked questions about saving money each month.

How do I create an easy monthly savings plan?

There are many effective yet easy monthly savings plans that exist. You can use these as a framework to create your own personalized plan. For example, you could implement the 50/30/20 rule which suggests you put 50% of your income towards essential expenses, 30% for discretionary expenses, and 20% towards savings. You can also try putting 10% of your monthly income towards retirement, with the other 10% dedicated to more short-term savings.

How much money should I save each month?

When deciding how much to save each month, examine your unique financial circumstances and goals. Analyze how much income you’re generating each month, as well as how much you’re spending, and then build a savings plan that’s right for you.

How can I save $1,000 in a month?

By making several small changes to your spending habits, you may be able to save $1,000 in just 1 month. You can accomplish this by creating and sticking to a budget, limiting unnecessary spending, canceling subscriptions, and getting a side hustle. The 12 ways we discussed in this article will get you off to a great start.

The Bottom Line

When trying to save money each month, dare to get creative and step out of your comfort zone. The 12 simple yet effective ways we discussed can help you build a solid savings foundation. Ultimately, saving money comes down to sticking to a budget and limiting unnecessary spending.

And, you can leverage technology to make your savings goals achievable. The Rocket Money app is equipped with many features that make it easier to save, some of which include the ability to cancel unwanted subscriptions, and budget and automate savings deposits.

Download the Rocket Money app today.