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Do you feel like you’re overspending, and want to save more money each month?
Do you always feel like an unexpected expense comes up, like a sudden car repair, or an unexpected medical expense, and you’re waiting for the right time to start saving?
The truth is, there is no such thing as the “right timing.” If you wait, you won’t ever start saving. The right time to start saving is now.
Today, I’m going to show you 11 unique tips you can immediately implement to save more money each month.
How can I save more money each month?
We all can benefit from saving a little more money each month. Saving money is an important part of learning how to build wealth. With the proceeds, we can put it in a savings account, save for a new car, for a down payment, or invest it in the stock market.
Whatever the case may be, it’s important to pay yourself first by saving!
1. Deposit your paycheck into multiple different accounts
Are you having a hard time saving money? Do you end up impulse buying things you later regret?
Then this is for you.
Did you know that you can have your paycheck deposited into multiple different accounts? It’s an option that most employers offer, and it’s a great tool you can use to stop yourself from spending too much money.
To set this up, log in to your company’s portal where you would go to check your paycheck stubs. If you need help locating this, you can contact your company’s human resources.
Once you’re logged in, there should be a menu or option that says, “direct deposit,” or something that allows you to make changes to your direct deposit information.
Once you locate this menu, click on it and you can make changes to where your paycheck is deposited. As an example, you can set it so that 10% of your paycheck is automatically deposited into your savings account or brokerage account where you can invest your money.
Overall, this is a great way to save because it is automatic. The system is automatically depositing your money into your savings account before you even get to see it, which can help you stop buying things on impulse.
2. Use a cashback credit card
Did you know that businesses increase their prices to compensate for the credit card processing fees they have to pay?
Credit card companies like Visa and MasterCard charge businesses every time they accept a credit card payment. This fee is called an “interchange fee” and usually ranges anywhere from 1.15% to 2.50%. Because businesses are being charged this fee, they have to raise the prices of their products to compensate.
This means that if you’re always paying with cash or a debit card, you’re technically losing money.
Make sure you’re not losing money by using a credit card with some kind of reward. Cashback credit cards are great because you can directly deposit the cashback into your bank account.
There are lots of different cashback credit cards out there with no annual fee. Some offer up to 5% cash back, which in other words means that you are technically getting a 5% discount on your purchases.
Take advantage of the cashback that credit cards offer so you can save more money each month.
3. Implement the 30-day rule
Are you thinking about buying that new Bluetooth speaker from Bose? What about that new iPhone you’ve been waiting for to be released?
The next time you find yourself wanting to make an impulse purchase for something you don’t need, add the item to your cart and leave it there for 30 days.
If you still want the item after 30 days, you can purchase it.
This is a simple and effective strategy you can implement to help you save more money each month.
The reason why this simple strategy is so effective is that it takes the emotion out of your spending. A lot of non-essential purchases are made based on emotions. By waiting 30 days before you make the purchase you can allow yourself more time to think.
Sometimes you’ll even forget you wanted to buy anything in the first place.
Of course, this plan will only work if you stick to it. But once you implement it and you are determined, it’ll help you save a lot of money in the long run.
Learn about the things you can buy that will make you money.
4. Cancel subscriptions
Are you aware of how much money you’re spending on subscription services?
C+R Research conducted a study to see how much on average people spend on subscription services.
The results are surprising.
The participants were first asked to estimate how much they think they are spending each month on subscriptions. The average estimate was $86. However, after taking a closer look at their expenses, it turns out they were spending an average of $200!
About 75% of the participants said it is easy to forget about recurring monthly subscriptions, which is very true.
Take some time out of your day to sit down and look at how much you are spending on subscriptions. You might be surprised by the results.
From there, you can opt to cancel some subscriptions if you no longer need them so you can add to your monthly savings.
5. Search for free activities
We all need to get out of the house and do something fun.
But did you know that the average date night in the U.S. will set you back around $100?
Also, did you know that the average American household spends $243 a month on entertainment?
Having fun can be expensive, but it doesn’t have to be. You can find a lot of free alternatives if you take the time to do the research.
An example would be outdoor activities. Things like hiking, going to the beach, going on a picnic, or going for a bike ride costs little to no money. Not only would you be able to save more money each month, but you’d also be able to stay healthy by being active.
6. Get a bank account that doesn’t charge fees
The average American spends $7 in banking fees every month. That’s $84 a year just to store your money in a bank account.
The main way you can avoid these fees is to change your bank account.
Understand that the majority of big banks like Wells Fargo, Citi, and Chase charge the most fees. You’d be much better off going with a credit union or an online bank because they charge less fees. Some charge none at all.
The only downside with some online banks or credit unions is that they might lack the traditional brick-and-mortar services that big banks offer. But if that is something you don’t care about, look into switching to save on those petty fees every month.
Check your bank statements to see if your bank is charging you any fees. If they are, you can do some research through Google to see which bank will best fit your needs. Banks charge for different things, so only you can tell which one will charge fewer fees for whatever you need to get done.
7. Buy generic store-brand products instead of name brand
Instead of choosing name-brand products, go with the store-brand alternative.
Consumer Reports says that on average, store-brand products are 20-25% cheaper than name brands, and there is no difference in product quality.
Store brands are much cheaper because they cost less to produce. Food companies spend millions on branding, testing ingredients, and advertising. Store brands usually just stick to a simple label and spend no money on advertising, which allows them to pass the savings on to the customer.
Some dairy products such as yogurt, eggs, and milk may even be fresher with the store brand. Store brand products usually come from local sources which are often fresher and less processed.
If you want to buy the name brand, you can always keep an eye out for coupons. Besides that, going with the generic store-brand will allow you to save more money each month.
8. Switch to an off-brand cell phone carrier
Smartphones have become part of our everyday lives. However, the costs of phones and phone plans have gone through the roof.
There are much more affordable alternatives to T-Mobile, AT&T, and Verizon.
Off-brand carriers can be significantly cheaper than the main brands. For example, Mint Mobile is a popular one, offering 4GB of data and unlimited calls and texts for just $15 a month.
The reason why these off-brand cell phone providers are so cheap is that they don’t have their own equipment. They run off of towers and satellites of other companies, so they don’t have to pay for the building and maintenance.
If you plan on switching to an off-brand cell phone carrier, it’s important to check which towers they use for coverage. For example, if you live in New York, using Mint Mobile would make sense because they use T-Mobile towers. However, if you live in rural America, using a company like Visible would make more sense since they use Verizon’s towers.
9. Buy a water filter and stop drinking bottled water
Drinking water is a necessity in our lives, but it does not have to be expensive.
According to Earth Day, the average American spends about $266 a year on bottled water. This may not sound like a lot but compare that to a water filter such as Pur.
An 11-cup pitcher from Pur can cost around $40, and a three-pack water filter will cost you around $20.
A single water filter will last around two months.
With an initial cost of only $60, you won’t have to spend another dime on drinking water for the next six months.
Add another $20 for another three-pack filter for the rest of the year and you’re only looking at $80 for the initial year, which includes the cost of the pitcher.
After that, you would only have to buy the replacement filter, which would technically only cost you $40 per year. Compare that to spending $266 on bottled water!
Not only are you going to save more money each month, but it is also going to save the environment.
Only 20% of plastic water bottles are recycled each year, with the remaining ending up in oceans and landfills. This leads to around $13 billion in losses which include damage to marine ecosystems and clean-up costs.
10. Stay sober
Here are some more statistics.
Did you know that the average American spends around $484 per year on alcohol? That’s more than 35 bottles of wine a year or about three bottles per month.
It’s also no secret that frequent alcohol consumption can cause major health risks.
Alcohol is the third-leading preventable cause of death in the United States, with around 95,000 Americans dying of alcohol-related causes every year.
Stay sober, and you will save more money each month. If you have an alcohol problem, seek help.
11. Switch over to LED lightbulbs
Thanks to technological advances, we can enjoy lighting our homes at a cheaper cost.
According to Energy.gov, lighting accounts for about 15% of the average home’s electricity bill. You can save about $200 per year by simply switching over to LED lightbulbs. LED lightbulbs are 90% more efficient and can last 25 times longer than traditional incandescent bulbs. If you are trying to cut down on your utility bill, switching to LED can be one of the fastest and easiest things to do.
In addition to this, you can also invest in dimmers that will allow you to change the brightness of your light, and timers that will automatically turn your lights off at a set time.
Conclusion
We went over a total of 11 tips you can implement today to save more money each month. They are going to require some effort on your end, but the effort is worth the amount of money you’ll save.
I hope these tips help you in your journey to build your savings. Let me know if you used any of these tips in the comment section!
Are you wondering what you should do with the savings? Learn about why investing in index funds is the best strategy.
Learn how to build wealth in your 20s.