It’s amazing how small changes to your budget can result in substantial savings. Cutting back on expenses and making better financial decisions make it possible to save a great deal of money per month. You may think that small purchases are not adding up, but in actuality, they are incredibly expensive. For example, a $4 latte goes a surprisingly long way.
For example, saving $3 per day for a year adds up to $1092! As you can see, learning how to scale back expenses each month on even the smallest items can rapidly build up your savings!
Benefits of saving money monthly
It’s easier to achieve your goals when breaking them down into smaller actionable items. For that reason, learning ways to limit your monthly expenditures will let you reach your goals for larger total savings. For example, you may aim to save $10,000 every year.
That’s a daunting goal when you consider that number! However, breaking it down into monthly goals makes it more manageable and helps you focus on the amount you earn each month.
Rather than dividing $10,000 by 12 to yield your monthly minimum, you should divide it by 12 in order to get the monthly figure that you need to save. $10,000 divided by 12 equals $833.33 per month.
You can break it down by the day, which is $208.33 per week. Even a smaller target like saving $100 a week will help out over time.
This shows how prioritizing smaller goals can help you save money every month.
25 Great ideas for how to save money each month
These top 25 tips will help you manage your monthly finances and save huge money.
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 decreasing your mortgage payment. The easiest way to do this is to obtain a roommate because you can split the check with your roommate and significantly reduce your living costs.
Another way to reduce your monthly mortgage payment is to refinance your current mortgage at a lower rate, resulting in a lower monthly payment.
However, you should only refinance your home if you plan to remain there for a while in order to cover closing costs. Otherwise, you will just be throwing your money away.
2. Downsizing your living space
Many people are becoming skilled at saving money by renting smaller apartments and houses. Smaller apartments or homes lead to lower monthly bills and less utility costs. The smaller area means less electricity, and the cost can be paid more quickly as well.
3. Cancel subscriptions
How many paid subscriptions do you have? Perhaps you have three that cost $9.99 each. That is about $30 per month, which is roughly $360 per year.
A key to saving money each month is finding areas where you can cut costs. These tiny expenses may not seem important, but they can add up to substantial savings over the course of a year.
4. Shop at discount grocery stores
Saving money on groceries each month is possible by knowing where you can save money. Discount grocery stores like the Aldi’s, Sharp Shopper, and Family Dollar store offer substantial savings on nearly all products.
You can get significant savings by shopping at a variety of different discount stores for many different products.
5. Switch insurance companies
Are you always hearing insurance commercials promising to save you money? By shopping around for the lowest rates, you can save quite a bit of money.
Review different vendors to find out which one offers the most affordable coverage for the type of medical evacuation you prefer.
6. Get organized
Have you ever been late on a payment because you were confused about where to stuff it? Staying organized can help you save money because it will keep you from paying late payment charges.
Late fees are expensive, and every month is too many.
7. Pay off debt
Financial debt is costly, particularly high-interest credit cards. Interest may run hundreds or even thousands of dollars a year!
Paying off debt will save you money because you aren’t wasting money on interest. One of the most effective ways to pay off debt is by using the debt snowball method.
This approach will help you to pay off the credit card with the lowest balance first, so you can enjoy that feeling from completing one of your goals! You can then move on to the other card and complete it when you are debt-free!
8. Find free things to do to save money each month
It seems as though everything is getting more and more expensive, even simple things such as movie tickets. A movie ticket for two can cost nearly $25, which is equal or more to the price of two entrees at a restaurant. Finding fun, inexpensive activities can save you a lot of money.
If you’re bored, you can use Google’s free things to do feature to get ideas for fun activities. Input your zip code into the search bar, then pick the city you are located in from the list that Google supplies, and you’ll find countless fun possibilities.
9. Use a spending journal
Have you ever wondered where all the money you earned went? Start using a spending journal to carefully track your purchases so you know exactly where your money is going.
This will help you find and ensure that you are spending your money wisely, which will save you significant sums of money each month.
10. Shop secondhand
You can save up to 50% off on retail prices by purchasing used items. Clothing, electronics, jewelry, and other goods can be found at a reduced price at Pawn Shops and restaurants called Thrift Stores.
You can find items on eBay and Facebook Marketplace, too. This can help you save quite a bit on back-to-school shopping as well!
11. Buy in bulk
Another easy way to save is by buying certain items in bulk. Items like toilet paper, paper towels, cleaning supplies, and canned food are often purchased in bulk, making them more affordable.
Of course, be careful when buying perishable items in bulk as they will quickly spoil. Foods can be frozen to preserve them longer as well.
12. Save money each month by meal prepping
Do you feel like you order out because you don’t want to cook? You’re not alone; Americans are wasting over $1,800 each year on unused food. Oh my gosh!
Meal planning will reduce your food expenditures each month since your groceries will be prepared ahead of time.
Meal-prepping saves time and helps you get ahead on your budget too. Pick a day, prepare your food for the week, and see how it simplifies your life and grows your savings.
13. Pay in cash
It may surprise you, but paying with cash can actually help you avoid overspending. The pain of paying kicks in when you hand over cash, more so than when using a credit card or debit card.
So much, in fact, some have saved even more money with the envelope system.
14. Use less gas
Instead of having to commute around all week, why not plan all of your errands on the same day to save gas? This lessens the amount of money you spend on gas and results in fewer miles put on your vehicle.
15. Reduce your electric bill
There are several ways to reduce your electricity bill. Unplugging appliances can prevent phantom electricity, where electricity is still being consumed even once the device is turned off. Of course, turning off lights and other appliances when you are not using them is enjoyable too.
Another good way to save additional money is by using the fans instead of air conditioning whenever possible. These are simple changes that can make a big impact.
16. Skip the soda
Buying soda every week can multiply your grocery store expenses. A 24-pack of soda is roughly $8 if you buy a pack every week; that adds up to nearly $400 per year!
Just think, you can take a nice little weekend anywhere instead. Switch to water to save money and time while staying healthy as well!
Clutter is not only inconvenient; it actually costs you money! Whether you are renting a storage unit or storing items at home, it costs you money to keep it. The cost to remove clutter in your home is $10 per square foot on average.
You can save money by receiving rid of all that surplus stuff. You can also sell your items to stockpile your bank account even further!
18. Automate your savings
It’s too easy to make excuses for why we shouldn’t transfer money to savings bonds, and one of the most common excuses is that we “forgot” to do so.
That’s why automating your savings is an easy way to save extra money each month. Set up an automatic transfer of a specific amount to transfer each week to your bank account. You can’t believe how quickly it adds up!
19. Use cash-back apps
Use cash-back apps to save money. Apps such as Rakuten, Ibotta, and Fetch Rewards help you locate bargains and get rewards. Just using these programs can save you money if you’re shopping.
20. Workout at home
You can stay fit without joining a gym membership and still work out at home. You can find an exercise program and costs online, and you can even work out with an online trainer for a low cost. Quite a few workout videos are available online. You can do many of them for free too!
21. Save on prescriptions
Whether you’re eligible for health insurance or not, you can save money on your monthly prescriptions using apps such as GoodRX.
For example, my mother has health insurance but still asks the pharmacy to run her GoodRx card to see if it’s cheaper to pay out of pocket. She saved over $300 on one prescription! This is a very simple way to save funds each month.
22. Switch your cell plan
If your cell plan is depleting your checking account, it’s time to shop. Compare cell phone plan prices from various providers and then pick one that fits your needs and your budget. Switching medical billing organizations could result in large monthly savings!
23. Compare prices when shopping
Thanks to smartphones, it’s now easier than ever to compare prices when shopping, especially if you’re shopping online. Rather than hitting the ‘Buy It Now’ button, look around for the best deal to save lots of cash.
Be sure to do this for standard shopping as well, even for larger purchases. Merely comparing different stores can result in big savings.
24. Use a shopping list
You should not go shopping when your stomach is empty. The same holds true for shopping without a list, as it can be very easy to overspend when you don’t have a strict budget to follow.
Like me, you also forget the key ingredients you will need for dishes and wind up with less than half of what you need. Make a detailed shopping list can greatly help you save monthly.
25. Start couponing
Couponing is an easy way to save money. If you’re not excited for typical couponing, you can clip digital coupon codes and load them to your store discount card.
Because you will receive the store card and coupon discounts, you could save on your grocery bill by doubling your savings at the supermarket.
Bulk your bank account by learning how to save money each month
Learning how to save money on a monthly basis results in being more frugal and bulking up your bank account.
It will also help you to restrain your spending and avoid accumulating debt by assisting you with your financial goals. Be sure to create a monthly budget and follow these suggestions to save money every month.
For extra motivation, you can keep up with your savings goals by listening to financial podcasts, reading blogs, and watching YouTube videos. Be sure to check out our free financial courses and worksheets as well!