28 Proven Ways to Save Money
Ways to make money include tracking your spending, shopping smart, canceling subscriptions and more.
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If saving money feels hard to do these days, with high prices and economic uncertainty, you’re not alone.
Nearly 2 in 5 employed Americans (39%) say they save less than 20% of their take-home pay, according to a new NerdWallet survey. And 10% of employed Americans say they don’t regularly save anything in a bank at all.
Whether you want to start saving, or just stash a little more than you already do, we’re here for you. Below are 28 ways to save money:
Budget money to become a saver
1. Create a budget
One smart way to manage your money — and hopefully hold on to more of it — is to follow a budget, which means comparing your income and your expenses, then setting priorities for your spending. See our guide to how to budget, try our free budget template or even grab a piece of paper to start.
One method is the 50/30/20 budget for money management. This approach means devoting 50% of your after-tax income to necessities, 30% to wants and 20% to savings and any debt payments. If one of your allocations exceeds these percentages, you can make some adjustments elsewhere.
If this 50/30/20 breakdown doesn’t work for your financial situation, that’s OK. Another type of budget may work better, such as the 60/30/10 budget, or the envelope system, which has you set limits for various expenses.
2. Set savings goals
Set a specific and realistic goal, whether it's big or small. If you have extra income, that goal may be to save $2,000 in an individual retirement account this year. If you’re tackling debt, maybe you aim to pay an extra $50 toward your balance each month. Or, if money is tight, saving $5 per week can add up.
Use a savings goal calculator to see how much you’d have to save each month or year to reach your goal.
3. Track spending
Saving money is tough if you don't know how much of it you've been spending in the first place. Keep track of your monthly cash flow — your income minus your expenditures. This step will also make it easier to mark progress toward your savings goal. Many budget apps can help you track spending.
4. Count your coins and bills
Another option is setting aside your spare change each night. After you have a sizable amount, you can deposit it into your savings and watch your account grow. In fact, when you want to watch your spending, it’s a good idea to use cash instead of credit cards because it can be harder to part with physical money. While this strategy won’t build savings overnight, it's a solid approach for slow-and-steady growth.
5. Keep savings in a high-yield savings account
As you save, aim to put your accumulating funds in a high-yield savings account. That type of account earns an above-average interest rate on deposits, which can help your bank balance grow faster than with traditional options. Learn more about what a high-yield savings account is.
If you’re not approved for a savings account because of past banking issues, learn about second chance checking accounts.
6. Automate transfers
By setting up automatic transfers from your checking account to your savings account each month (or via a company direct deposit), the money will accumulate over time with little effort. This technique can be especially useful when your savings accounts are dedicated to specific goals, such as establishing an emergency fund, paying off debt, going on a vacation or building a down payment.
Tackle debt to save on interest
7. Pay off high-interest debt
Debt payments can be a big burden on your overall budget. If you can pay off debt more quickly — by making extra payments or paying more toward the principal balance when you can — you’ll save on total interest paid and free yourself from that burden sooner. If you can't make extra payments right now, consider exploring ways to make money on the side that you can put toward your debt.
8. Lower your student loan payments
If you have student loans, enrolling in income-driven repayment could lower your monthly payments to a manageable level since the amount you pay is tied to your earnings. Other options include refinancing student loans, enrolling in autopay to trigger a discount and making extra payments so you can unload the debt faster, which cuts the overall interest you’ll pay.
9. Refinance your mortgage
If you own a home and are able to get a lower interest rate, refinancing your mortgage could save you several hundred dollars each month. But it’s important to consider other factors, such as the current interest rates, if you’re trying to decide when to refinance a mortgage. Use our mortgage refinance calculator to find out how much you could save. While refinancing comes with some initial costs upfront, they may be able to be recouped over time, once you start paying less each month.
Cut the cost of monthly bills
10. Prep for grocery shopping
A little work before you go to the grocery store can go a long way toward helping you save money on groceries. Check your pantry and make a shopping list to avoid impulse buying something you don't need. Learn how to get coupons and join loyalty programs to maximize your savings as you shop.
11. Lower your TV and internet bills
Review what you’re spending on TV and internet — and if you need all that you’re buying. Do you watch the premium channels in the expensive cable package, for example? Do you use all the streaming services you have? Do you need the highest internet speeds? You could lower your cable bill by as much as $40 per month by downsizing your cable package. Other options to consider are getting rid of cable, cutting some streaming services or premium subscriptions, or downgrading your internet plan.
Many cable and internet companies are willing to adjust pricing to keep you as a customer. Here's a script that can help guide your phone call to your provider.
12. Switch to a cheaper cell phone plan
It might be time to change your cell phone plan to save some serious money. As you set out to find the best cell phone plan for your situation, you’ll want to consider network quality and whether a prepaid or postpaid plan is best for you. When you’re ready to save, there’s probably a cheap cell phone plan out there that can meet your needs.
13. Reduce your electric bill
Big and small changes in your energy use can help you lower your electric bill. Consider plugging any insulation leaks in your home, using smart power strips, swapping in more energy-efficient appliances and switching to a smart thermostat. Even incremental drops in your monthly electricity usage can add up to big savings in the long term.
14. Cancel unnecessary subscriptions
You might be paying for subscriptions you no longer use or need. Reviewing your credit card or bank statement carefully can help you flag any recurring expenses you can eliminate. Avoid signing up for free trials that require payment information, or at least make a note or set a calendar reminder to cancel before the free period ends.
Save money when you shop
15. Map out major purchases
You can save by timing your purchases of appliances, furniture, cars, electronics and more according to annual sale periods. And if you're an Amazon Prime member, you can check out Prime-exclusive sales in July and October.
It’s also worth confirming whether a deal is actually a deal by tracking prices over time. You can use a shopping browser extension to automate the deal-tracking and couponing process. For example, the Camelizer extension from Camelcamelcamel makes it easy to view prices over time on Amazon, and the PayPal Honey extension will automatically find and apply coupons while you shop online.
16. Delay purchases with the 30-day rule
One way to avoid overspending is to give yourself a cooling-off period between the time an item catches your eye and when you actually make the purchase. The 30-day rule gives you more time to decide whether you really want or need the item. If you’re shopping online, consider putting the item in your shopping cart and then walking away until you’ve had more time to think it over. (In some cases, you might even get a coupon code when the retailer notices you abandoned the cart.)
If 30 days seems like too long to wait, you can try shorter periods like a 24- or 48-hour delay.
17. Restrict online shopping
Making it more difficult to shop online may help you stop spending money on things you may not need. Instead of saving your billing information, opt to input your shipping address and credit card number each time you order. You’ll probably make fewer impulse purchases because of the extra work involved. You may even consider deleting any shopping apps from your phone.
18. Stock up on household supplies when they’re cheap
It can feel like you’re constantly buying items like dishwashing soap, paper towels or toiletries. Track your inventory of household supplies and consider buying these items in bulk when they’re on sale. It may be cheaper than rushing to buy them last-minute when they’re selling at full price. Using “Subscribe and Save” on Amazon can be a good way to get regular shipments of household supplies at a discount.
19. Shop consignment and thrift stores
Shopping at thrift or consignment stores can be a way to save money. Both kinds of stores sell used items for less than they would be at a traditional store. At consignment shops, you could also bring in your own stuff to sell.
Whether buying at a consignment or thrift store, compare prices to ensure you’re getting a reasonable discount.
20. Get creative with gifts
You can save money with affordable gift ideas, like baking cookies, creating art or preparing someone dinner. You can also give someone the gift of your time by offering to take them to a free museum or event.
To plan for costs, create a calendar for all the important gift-giving events for the year. Then create a savings bucket specifically for gifts, and buy the items during major sale periods such as Prime Day or Black Friday.
21. Find ways to get free items
Programs such as The Freecycle Network and Buy Nothing groups make it easier to get items you need for free. You can exchange items locally for free with the goal of reducing waste and helping the environment. Check for these opportunities on Nextdoor, Facebook Marketplace and Craigslist, too.
22. Cash in on your birthday
Once a year, set aside extra money by getting freebies and discounts on your birthday. You could get free food or rewards to redeem on clothing purchases. We compiled a list of dozens of companies that offer birthday freebies.
Spend less money on transportation
23. Lower your car costs
Refinancing your auto loan could save you considerably over the life of your loan. Shopping around for car insurance can also help you cut costs compared with simply letting your current policy auto-renew. You can cut ongoing car maintenance costs by driving less, removing heavy items from your trunk and avoiding unnecessary rapid acceleration.
24. Reduce your gas usage
You can't control gas prices, but you can do several things to save on fuel, such as adhering to your car’s maintenance schedule and stacking errands to avoid unnecessary trips. Try saving money by using a gas app when you do fill up.
25. Use car sharing services
If you need to rent a car, consider a rental car alternative, such as car-sharing services Turo or Getaround. Research to see if car-sharing services work out to be cheaper than larger rental companies. If you don’t drive much, you may also find using car-sharing services are less expensive than owning a car or using taxis or ride-shares.
Find cheaper ways to be entertained
26. Minimize restaurant spending
One of the easiest expenses to cut is restaurant meals, since eating out tends to be pricier than cooking at home. If you do still want to eat at restaurants, try to reduce the frequency and take advantage restaurant rewards your credit cards may offer.
You can also opt for appetizers or split an entree with your dining companion to eat out on a budget. Skipping drinks and dessert can help stretch your budget as well.
27. Get discounts on entertainment
You can take advantage of free days at museums and national parks to save on entertainment costs. Your local community might offer free concerts and other events. Check your local calendar before splurging on pricey tickets to private events. You can also ask about discounts for older adults, teachers, students, military members or veterans, first responders and more.
28. Enjoy community events
Getting out and having new experiences can be expensive. Find free (or cheap) things to do in your community by checking listings at libraries, churches and websites such as Eventbrite. Or enter your city and "events" in a search engine to find some things to do.
If you have kids, community events can be an inexpensive way to keep little ones engaged and spend quality time together. For outdoor events, pack snacks and water to minimize the amount you spend on food.
If you need help saving money
If you’re budgeting and living frugally and still don’t have enough left to save, consider getting help.
Government. Government assistance programs may help you get discounts on utility bills, fund your food budget, offset child care expenses and more. Keep in mind that many of these government programs are available only to families considered to be low income. Learn about what counts as low income and how to potentially get money from the government.
211. Visiting 211.org or calling 2-1-1 will connect you with local experts who can explain and potentially refer you to social service programs that may save you money. This confidential, 24/7 resource may help with expenses related to housing, health care, emergencies, crises and food.
Lenders and service providers. If you can’t pay your bill to a lender or service provider, call the company’s customer service line. Ask for help in the form of lowered or deferred payments, rebates, assistance programs or an alternative payment plan. Here’s exactly what to say when you call a utility company.