Ways To Save Money Each Month

Working out How To Save Money Each Month can seriously increase your contributions to your savings goals. The hardest part? Getting started.

Once you’ve found the money saving tips and tricks that work for you, saving becomes a habit rather than a chore. Best Ways To Save Money Fast Each Month

And nothing says “habit” quite like a monthly goal. Setting a target to achieve each month can give you the consistency necessary to build up a healthy savings account over time.

Read on to discover the secrets to saving money each month, so you can start improving your financial health today. Best Ways To start Saving Money Each Month

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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. The Best Ways To Save Money Each Month

For example, saving $5 a day for a year adds up to $1,800! 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 And How To Save Money To Live Better

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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.

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So, rather than focusing on $10,000, you will divide that amount by 12 to get the monthly amount you need to save. The Best Ways To Save Money Fast Each Month

$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.

How much money you should save each month depends on your lifestyle and expenses. A good target to aim for is 20% of your overall income. The Best Ways To Save Money Each Month.

But you should feel empowered to start lower if that seems like too much of a stretch. Remember: Every little bit counts.

So, how do you know if a 20% savings target is too high or too low? It starts with assessing your current cash flow.

Take some time to calculate your monthly income and expenditures. Basically, the money coming in and the money going out of your bank account.

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Keep tabs on any expenses that predictably recur each month. Such as your rent, and any that fluctuate based on your spending habits.

Before we get into actual savings methods, let’s get something out of the way. Saving money doesn’t have to be painful.

In fact, you probably should allow yourself a little wiggle room to enjoy yourself — within reason. If you’re too hard on yourself, you may develop an “all-or-nothing” mentality that ultimately undermines your savings goals.

With that in mind, let’s look at one saving and budgeting method that may help you reach that 20% savings target. It’s called the 50-30-20 Rule.

If you’re looking for an accessible, easy-to-remember budgeting tool, look no further than the 50-30-20 rule. Learn The Best Ways To Save Money Each Month

Created by US Senator Elizabeth Warren when she was a law professor specializing in bankruptcy law. The 50-30-20 rule suggests breaking down your monthly expenditures according to the following rules:

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1) 20% should go towards your savings goals

2) 30% should go towards your wants, e.g.,

• Holidays
• Eating out,
• Gym subscriptions,

3) 50% of your gross income should go towards your needs, e.g.,

• Rent,
• Utilities,
• Debt Repayments

According to the 50-30-20 rule, you should be saving 20% of your income each month. This is a nice, round number, but think of it more as a guideline than a rigid rule. Best Ways To Save Money Each Month

Putting aside 20% a month can be a bit easier to manage if you have a regular, fixed income.

Knowing how much money is coming in and going out can empower you to take advantage of one of the best savings tools of all: automatic deposits.

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If you set up an automatic deposit that sends 20% of your monthly income into a designated savings account, you won’t have to remind yourself to do it each month.

Another benefit of automating your savings? It prevents your money from sitting in your bank account until you manually transfer it into a savings account — thus reducing the likelihood you’ll spend it.

According to Eurostat, the average monthly net income of an EU citizen is €1473. If we apply this figure to the 50-30-20 rule, we get the following break down:

• €294 goes towards savings (i.e. 20% of Net Income)

• €441 goes towards wants (i.e. 30% of Net Income)

• €736 goes towards needs (i.e. 50% of the Income)

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According to these figures, if the majority of EU citizens followed the 50-30-20 rule, the average savings per month in Europe would be around €300, or roughly €3500 per year.

For many, this would constitute a sizable emergency fund, or it would make a significant contribution towards paying off any outstanding debts.

Great ideas for How to Save Money Each Month. Get some inspiration on How To Save Money Every Month with these top ideas. Best Ways To Save Money Each Month.

Now that you’ve got an idea of how much money you should aim to put away each month, here are some tips on how to do it.

But remember: While doing all of the following would be an excellent way to start making some serious savings, trying to do too much too soon can be counterproductive.

Instead, start by choosing the tips that seem most achievable. Then, once they become habitual, begin integrating other money-saving practices into your routine.

1. Switch Insurance Companies: Best Ways To Save Money Each Month

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.

2. Negotiate Your Car and Home Insurance Bills

Many have too much insurance. Yes, I said too much!

I know someone who has full coverage with a deductible on a car that is worth $500, I know someone who pays for towing even though their new car comes with free towing, and more.

By shopping around, evaluating whether or not you should change your deductible, changing some of your coverage amounts.

Understanding insurance terms better, possibly taking a driving class, and more. You may be able to save a significant amount of money on your car insurance bill.

I also recommend simply calling your insurance agent and asking for a discount, many times they will offer a discount that will allow you to save money just for asking!

Many of these same tactics can be applied to your home insurance bill as well.

Average savings: $100+ per year

3. 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.

It may be frustrating to hear, but until you start paying off any outstanding debts. It will be difficult to start saving properly.

However, if you use a method like the 50-30-20 budget and put 20% of your monthly income toward paying off your debts, you may be surprised how quickly you can get out of the red.

Not only is this good for your bank balance, but it’s also great for your mind, as it will give you a greater sense of financial independence.

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!

5. Eat Out One Less Time Each Month: Best Ways To Save Money Each Month 

How many times do you eat out each month? How much do you think you spend each month at restaurants? Most people are surprised when they actually sit down and track how much they’ve spent!

Eating out just one less time won’t kill you, plus it will help you save a nice chunk of change over a one-year period.

Average savings: $25+ a month

Cutting back on your utility bills every month can free up quite a substantial amount of money. The biggest culprits are usually your electricity bill and gas bill.

As a result, you should make it a habit to regularly compare different providers to see if you could take advantage of a better deal elsewhere.

In addition, you should consider:

• Replacing any appliances that aren’t energy-efficient

• Unplugging electrical devices instead of keeping them on standby

• Switching to LED lightbulbs, as they use 90% less energy than the standard models

• Regularly monitoring your energy usage so you can spot areas where you could decrease your consumption

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! There are many ways to cut back on costs when grocery shopping.

A good place to start is to create a weekly meal plan so that you know exactly which ingredients you need to buy before going to the store.

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By sticking to a strict shopping list, you’re more likely to stick to a stricter budget. Another great tip is to do some simple mental arithmetic as you shop.

This means that every time you put something in your basket, you keep a tally of how much your shopping items are costing you. It’s worth using a calculator on your phone to help you with this.

Yet, perhaps one of the best tips of all is to avoid going shopping when you’re hungry.

Nothing will encourage you to stray from your grocery budget more than a hungry stomach, taunting you to stuff your basket full of pricey, pre-packaged snacks.

Reducing your phone bill each month can quickly add up to big savings. There are several ways you can go about doing this:

• Be sure to shop around for different providers until you find the best deal

• Before buying the latest model, ask yourself whether it’s worth buying a new phone if your existing one still functions well

• Before committing to a contract that includes a host of features, honestly ask yourself whether you will use these features enough to justify the price you’ll pay for them

• When on the market for a new phone, pay for it up front rather than getting the price of the phone included in your monthly bill as phone companies often hike up the prices this way

Many businesses make the majority of their money from subscriptions. Why? Because once people sign up for them, the thought of canceling seems too laborious.

In reality, cancelling an unused subscription is usually simple and can save you a lot of money. Ask yourself the following questions when considering whether to continue paying for a subscription:

• Is there a cheaper alternative available?

• How often are you using this subscription?

• Would it significantly impact your life if you no longer had it?

If you find yourself answering that you don’t use the subscription that often, or that there are cheaper alternatives available, it’s probably time to cancel it.

If you need to purchase a new item, consider buying it secondhand. Without losing too much in quality, you can often get some brilliant deals while saving quite a bit of money.

Whether you’re hunting for clothes in thrift stores or searching for specific items in online marketplaces such as eBay, you’ll need a keen eye to identify a real bargain.

However, when you find one, the feeling of getting a good deal for your money can be priceless.

Many new savers fall into the “all-or-nothing” trap. If they don’t meet or exceed their monthly goal, they get discouraged and give up on saving entirely. It’s an experience shared by many who try to stick to an overly strict diet.

When you make your savings goals too ambitious, you set yourself up for failure. Once you inevitably fail to reach your monthly target, you’re unlikely to stick to your savings plan at all.

This mindset is highly counter-productive, as even €1 saved per month is better than nothing!

The trick is to find the sweet spot of making your savings goals challenging but not impossible. Think about your savings as a long-term investment in your future.

Though there will be mishaps along the way, contributing something is always better than contributing nothing at all.

16. 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.

17. Use a Spending Journal: Best Ways To Save Money Each Month

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!

18. 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.

19. 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!

20. Buy in Bulk: Best Ways To Save Money Each Month

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.

21. 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.”

22. Refinance Your Student Loans and Save Money

I highly recommend Credible for student loan refinancing (they are the top student loan refinancing company and have great customer service!) so that you can save money.

You can lower the interest rate on your student loans significantly by using Credible which may help you shave thousands off your student loan bill over time.

Through Credible, you may be able to refinance your student loans to a rate as low as 2.13%!

Plus, it’s free to apply.

23. Use Less Gas: Best Ways To Save Money Each Month

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.

24. Drive a More Affordable Car

According to Edmunds.com, the average person in the U.S. spends $483 on a new car payment and $361 on a used car payment.

Yes, I was just as shocked when I read that statistic!

This is sad especially considering that many take out high-interest loans in order to pay for their car as well. Back when my husband worked in new car sales, he often told me about new car buyers who had car loans at interest rates of 20% and above.

While $479 a month may be affordable to some, I’m going to assume that it’s a lot of money for most people. Plus, once you add in gas, maintenance, insurance, taxes, registration costs, and more, the number is going to be much larger.

I think everyone should buy a car that they can actually afford. I am a big believer that your car expenses should be less than 10-15% of your monthly income in order for it to be affordable.

25. 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!

26. Use a Shopping List: Best Ways To Save Money Each Month

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.

27. Get Rid of Cable To Save Money.

According to NPD Group (a market research company), the average monthly cable bill is around $120. By the year 2020, the average cable bill is expected to be around $200 a month.

You can read more about cutting cable and how to save money by doing this. I recommend getting a digital antenna so that you can receive local channels for free!

Average savings: $120+ a month

28. 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.

29. Save on Prescriptions: Best Ways To Save Money Each Month

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.

30. 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:

• Watching videos.
• Financial podcasts,
• Reading blogs, and

31. Increase Your Savings By Canceling Your Gym Membership

There’s a gym in my town that’s quite small yet charges $200 a month. I have never once seen a soul in there so I’m not sure what’s going on. However, they are open so someone must be paying it.

There are so many ways to get a great workout both inside and outside your home.

While occasionally there are positives for paying for a gym membership for some people, the majority with a gym membership do not get their money’s worth.

Average savings: $25-$200+ a month

32. Purchase a Water Filter to Save Money on Water.

According to The Water Project, the average person in the U.S. spends around $100 per year on bottled water.

Instead of spending $100 on bottled water each year, you can drink the water from your own home. You can even Buy a Water Filter if you want to.

Note: Yes, I realize there are some towns out there where the water is not clean and that water needs to be bought, but that is not the average person.

Average savings: $100 per year

33. Meal Plan to Save Money: Best Ways To Save Money Each Month 

Meal planning is something that has completely changed our lives. We eat healthier than ever, we are saving money, and we have less food waste.

That’s saying a lot considering that the average person wastes over 40% of the food they buy. Yes, 40%! If you have trouble eating at home, then try out $5 Meal Plan. They send meal plans directly to your email.

It’s only $5 a month (the first two weeks are free) and you get meal plans sent straight to you along with the exact shopping list you need in order to create the meals.

Each meal costs around $2 per person or less. This allows you to save time because you won’t have to meal plan anymore, and it will save you money as well!

Average savings: $100+ a month

34. Save Money on Monthly Shopping and Entertainment Costs

Across the board, there are a number of steps you can take to save money on monthly shopping and entertainment expenses while you’re striving to stick to your budget. Here are seven of them:

• Sign up for a store’s text messages, which can offer deals that you might not find elsewhere.
• Verify whether a price on Amazon is the best price available. Price-tracking website CamelCamelCamel and price-tracking app Pricepulse can assist with this task.
• Head to the store on holiday weekends. Retailers frequently offer rock-bottom prices on certain items over periods like Fourth of July weekend and Labor Day weekend.
• Pick the smallest shopping cart or basket to bump up the odds that you’ll buy fewer items.
• Check out books from the library instead of buying them.
• Watch out for online deals and coupon codes.
• Take advantage of entertainment discounts from membership organizations like AAA and AARP.

35. Miscellaneous And Best Ways To Save Money Each Month

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There are many other ways to save money as well. Below is a quick list:

• Don’t pay ATM fees.
• Start/maintain a garden.
• Bring your lunch to work.
• Stop buying soda and drink more water.
• Visit the library for free books, movies, and more.
• Always pay your credit card bill in full each month.
• Take public transportation, walk, or ride your bike more.
• Switch to free banking if you’re paying for bank services.
• Use cold water when washing your laundry when you can.
• Make meals in bulk for the days you don’t feel like cooking.
• Use Uber for your next taxi and receive your first ride for free.
• If you’re a student, use your student ID discount whenever you can.
• Lower your utility bills. Find ways to use less water, less electricity, and more.
• Give yourself 24 hours or longer to think about a big purchase before pulling the trigger.
• Skip stores, the mall, window shopping and more so that you don’t buy items you don’t need.

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• Rent things around your home that you are not using, such as a spare bedroom or garage space.
• Always have a list before you go to the store. This can prevent waste, unneeded items, and more.
• Switch to generic if you can. Always make sure that it’s actually cheaper, though! In some cases, it’s not.
• Use a Programmable Thermostat so that you can heat and cool your home efficiently and more affordably.
• Keep your car well maintained. This can prevent expensive surprises in the future. Plus, it can keep you safe too! Things such as bad tires can put your life and others at risk.
• Plan out when you will pump gas and where. We are always traveling in our RV and have noticed wide differences in gas prices. One time we were lazy and thought that we didn’t have a choice because we were in the middle of no where and a sign said there wasn’t gas for another 50 miles. We pumped gas for around $4 and got back on the highway. The very next exit had gas at $2.50. I couldn’t believe it.

Simple Ways To Save Money: How To Save Money Each Month

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Sometimes the hardest thing about Saving Money for a house is just getting started.

This step-by-step guide for how to save money can help you develop a simple and realistic strategy, so you can save for all your short- and long-term savings goals.

A). Record Your Expenses

B). Budget For Savings

C). Find Ways You Can Cut Your Spending

D). Set Savings Goals

Short-term (1–3 years) Emergency fund (3–9 months of living expenses, just in case) Vacation Down payment for a car

Long-term (4+ years) Down payment on a home or a remodeling project Your child’s education Retirement

If you’re saving for retirement or your child’s education, consider putting that money into an investment account such as an IRA or 529 plan.

While investments come with risks and can lose money, they also create the opportunity for growth when the market grows, and could be appropriate if you plan for an event far in advance.

See step No. 6 for more details.

Tip: Set a small, achievable short-term goal for something fun and big enough that you aren’t likely to have the cash on hand to pay for it, such as a new smartphone or holiday gifts. Reaching smaller goals—and enjoying the fun reward you’ve saved for—can give you a psychological boost that makes the payoff of saving more immediate and reinforces the habit.

E). Decide On Your Priorities

F). Pick The Right Tools

G). Make Saving Automatic

H). Watch Your Savings Grow

The Bottom Line

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Saving money on monthly expenses can be rewarding in so many ways.

For example, it can help you slim down your debt, put aside cash for emergencies, allocate more funds for retirement and simply ease your financial anxiety.

Coupled with creating a budget, cutting your expenses can put you on the path toward enjoying a bigger and sweeter slice of life.