Trying to save money consistently for the first time can be difficult. You tend to think about all the expenses on your budget, debt payments to make, and other money goals to achieve. But the truth is that if you aren’t determined to pursue your savings goals unconditionally, there’s no way you can improve your finances.
I learned how to save money each month even before I attained financial freedom. Although I had a low income at the time, I was bent on increasing my net worth. I knew for sure that one way to achieve this goal was by saving money from my monthly income.
This post will show you various helpful tips on how to save money each month. By applying these tips to your financial situation, you will realize how feasible it is to save money from your salary every month.
How Much Money Should I Save Each Month?
The amount of money you save every month depends on how much you earn and the financial goals you are trying to reach. But ideally, saving around 10% of your income is a wise decision. This percentage can be contributed to your retirement account, emergency fund, or any other important savings account.
Benefits Of Saving Money Each Month
If you haven’t been saving money, you have definitely missed out on a lot of benefits. But it’s not too late to make things right. Here are some reasons why you must take your savings goals seriously:
1. Saving Money Each Month Brings Peace Of Mind
Savings enable you to establish a safety net that can ensure financial stability in the event of unforeseen costs or emergencies. Sometimes, you find yourself worrying about different situations:
- What if I fall sick?
- What if I lose my job?
- How do I send my kids to college?
Saving money can help reduce the anxiety or worry you feel concerning these issues. It gives you a sense of financial security, which is very vital to improving your peace of mind.
In the long run, having extra cash set aside for emergencies can significantly lessen mental stress. This is one reason you should be focused on learning how to save money each month.
2. Saving Money Each Month Helps You Achieve Your Financial Goals Faster
We all dream of having enough money to follow our passions and ambitions without having to worry about going broke or spending too much. Having enough money stored up for the future is essential for achieving any goal in life; be it a dream wedding or family vacation.
Saving money gives you financial independence and the freedom to lead the lifestyle you choose. In the end, you may live a pleasant life without using loans or credit cards, which helps you stay out of debt and the stress that comes with it.
3. Saving Money Each Month Promotes Work-Life Flexibility
Do you have aspirations of quitting your current job to pursue a more flexible career path, like becoming a social media influencer or establishing your own brand? It’s an exciting and brave decision. It has the power to alter your future!
Now before making this transition, you need a safety net. You need some level of financial backing so you don’t run into debt or feel stranded after abandoning your job.
With enough savings, you are free to pursue your dreams with confidence, knowing that you have enough money to see you through the early phases of your new business. Savings provide a reliable financial safety net.
Having money in place gives you the stability and peace of mind you need to seize opportunities, take calculated risks, and realize your dreams.
4. Saving Money Each Month Secures The Future Of Your Family
If you want the best for your family, you won’t waste any more time figuring out how to save money each month.
One of the strongest motivators that should compel you to save money is the desire to give your family—especially your children—the best possible life. You want to make sure their needs are satisfied, of course, as a responsible parent.
By laying a solid financial foundation, you can finance your kids’ college education, ensure their health and safety with life and health insurance, or even launch a family business that will eventually benefit them when they become adults.
18 Ideas To Save Money Each Month
Now, let’s get down to business and examine 18 solid ideas for how to save money each month. Here they are:
1. Monitor Your Expenses
Determining your spending is the first step towards starting a savings plan. Keep a record of every penny you spend, including normal monthly bills and the cost of every cup of coffee, home item, and gratuity.
Whatever method works best for you is how you keep track of your expenditure: pen and paper, a basic spreadsheet, or a free online app or spending tracker.
Once you have this information, total each sum and arrange the numbers into categories like food, gas, and mortgage. Examine your bank and credit card statements to ensure that everything is included.
2. Create A Budget
Although creating a budget is not enjoyable, the rewards are worthwhile.
Thankfully, building a perfect budget is now simpler than ever due to top budgeting apps you can easily install on your mobile phone.
You can monitor your spending, create a budget, and link your bank, credit card, and loan accounts with apps like Intuit Mint and YNAB, all from the comfort of your smartphone.
Doing this will help you to be careful with your spending and be able to account for your overall expenses at the end of the month. It’s one of the fundamental strategies for how to save money each month.
3. Budget For Savings
Budgeting for savings simply means creating a room in your budget that allows you to contribute a certain amount of cash to your savings accounts.
For example, just as you allocate a certain amount of money to grocery shopping and utilities, treat your savings goals with that same importance. Every month, set out to save at least 10% of your income. Of course, you should include this in your budget so you can track it later on.
4. Set Savings Goals
If you want to master how to easily save money each month, you must be intentional about creating savings goals.
When you establish a goal of saving a certain amount of money over a set period of time, it becomes a feasible objective for you. However, consider your potential savings goals first, both short-term (one to three years) and long-term (four or more years).
Next, project the amount of money you’ll require and the potential length of time it will take you to save it.
5. Set Your Priorities Right
Reducing expenses in certain areas allows you to use funds for other purposes. Therefore, determining which aspects of your life you value most can be beneficial.
If you value travel and experiences, for instance, you might be ready to make financial sacrifices in areas like clothing and technology.
Knowing your values will also help you use other frugal behaviors strategically. If you frequently dine out, for example, going over your values may help you realize that what matters to you are more essential than the meal—such as spending time with friends.
This realization will inspire you to come up with creative ways to host guests and hang out with your buddies without having to pay for a meal.
How To Save Money Every Month
6. Use The Right Tools
Numerous investment and savings accounts are appropriate for both short- and long-term objectives. And you’re not limited to choosing just one.
Examine all of your alternatives carefully, taking into account fees, interest rates, balance minimums, risk, and when you need the money. This will help you determine the ideal combination to save for your objectives.
For short-term goals, consider using one of these FDIC-insured bank accounts if you need to be able to access the money quickly or if you need it soon:
- A savings account.
- A certificate of deposit (CD), which usually offers a greater interest rate than a savings account; allows you to lock in your money for a predetermined amount of time.
When putting money down for your child’s education or retirement, I would recommend:
- FDIC-insured individual retirement accounts (IRAs) or 529 plans. These are tax-efficient savings accounts.
- Securities like equities or mutual funds. By investing in accounts with a broker-dealer, these investment products are accessible.
7. Automate Your Savings
This is one of the best ways to save money each month.
Automated transfers between your savings and checking accounts are available from almost all banks. You are usually allowed to decide where, when, and how much money to send.
You can even split your direct deposit, which allows you to set aside a certain amount of each paycheck for savings. The benefit is that you won’t have to consider it and are less inclined to spend the money elsewhere.
8. Cut Costs On Groceries
Have you calculated how much you spend on groceries every month? Go check your budget and track the expenditure.
The truth is that you may be spending a little bit more money on groceries without even knowing it, especially when you shop in a grocery store that doesn’t sell items at discounted prices.
If you are bent on saving some extra cash, you can take your grocery shopping elsewhere. Look for stores that offer the best prices. But more importantly, make sure you have a shopping list. Don’t buy items you don’t need in the kitchen. This is one thing you can do to save money each month.
By the way, if you need a more comprehensive guide on how to save money on groceries, check out these 10 proven shopping tips to save money on groceries.
9. Avoid Unnecessary Recurring Expenses
Recurring subscriptions such as Netflix, Spotify, subscription boxes, and meal delivery services could be costing you hundreds of dollars a month. You can decide which subscriptions are truly necessary for you and cancel the ones that aren’t.
Take the time to go through the list of services you are subscribed to. If you find anyone that isn’t contributing much to your well-being, ditch it.
Also, you can sign up for Rocket Money, a program that links to your bank account, tracks where and when you spend money, and can cancel undesired subscriptions for you. You should use this if you’re unsure of how many subscriptions you have.
10. Cancel Your Gym Membership
The moment you realize you don’t need a gym instructor to lose weight or stay fit, you won’t hesitate to cancel that gym membership. If you run to YouTube and search for “easy workout routines at home”, you will find dozens of helpful videos offering to teach you for FREE.
You might also be wondering… what about the gym equipment? How do I get them in my home? The truth is, you don’t need gym equipment to carry out most exercises – many instructors on YouTube can actually show you how to be physically fit without using any sophisticated gym equipment.
Don’t forget the ultimate goal – canceling gym membership will save you money.
How To Save Money Monthly
11. Buy Fairly Used Items
Not everything has to be purchased brand-new. For example, you can discover plenty of good pieces for your wardrobe at your neighborhood Goodwill or thrift store, or on used clothing websites like thredUP or Poshmark, rather than having to buy new things.
Check out OfferUp, Craigslist, and Facebook Marketplace if you need furnishings.
On platforms like Etsy and eBay, you can find more distinctive used items like jewelry and collectibles.
12. Use Online Coupons
One of the ways to save money every month is by using coupons. For decades, many Americans have saved thousands of dollars on groceries by purchasing items with coupon codes.
If you are just getting started with coupons, I suggest you use the Slickdeals browser extension. It makes it so much easier to locate coupons because it does the searching for you while you shop, saving you time.
The best part is that you can download the Slickdeals browser extension for free. It doesn’t cost any money.
13. Stop Using Grocery Delivery Services
If you use a grocery delivery service, you can check the prices for the food itself as well as the service fees charged by various providers. For instance, Instacart occasionally marks up to 24% to 15% of the items.
But if you desperately need your items to be delivered, you can save money on grocery delivery by enrolling in Walmart+, which offers unlimited deliveries for a single annual fee. You won’t be spending as much as you used to anymore. It’s one of the simple tips to help you save money each month.
14. Take Meal Prep Seriously
You can easily spend $20 or more for a meal when dining out. Your dinner may end up costing twice as much if you include delivery and other extras. However, when you know there is food in the refrigerator for you to eat when you’re too exhausted to prepare a meal, you’ll be far less likely to dine out.
One way to prepare meals for the rest of the week would be to set aside a day of the week and dedicate a few hours to cooking. This will help you save a ton of money.
Thing You Can Do To Save Money Each Month
15. Find Free Entertaining Activities
Finding free or very cheap ways to entertain yourself is another tip on how to save money monthly.
On a weekend, for example, don’t be quick to take out your credit card to pay for stuff just have a good time. There are creative and fun ways to have fun on weekends without spending a cent from your checking account.
This can entail exploring nearby parks, beaches, and hiking trails, visiting museums on free days, and taking strolls through botanical gardens.
16. Use Cash-Back Rewards Credit Cards
You can receive cash back every time you make specific purchases using a rewards credit card. Get a percentage of what you spend on travel, groceries, eating out, and other things back.
Certain credit cards provide revolving categories, while others provide a fixed cash-back rate across multiple categories, eliminating the need for you to monitor your expenditures.
Don’t spend the cash you receive back. Rather, use it to reduce your monthly payment by applying it to your bill. This is another helpful tip on how to save money each month.
17. Avoid Flash Sales
A flash sale is just one of the common strategies retailers use to attract buyers, including impulsive shoppers.
Since you are learning how to save money each month, you must be able to apply some level of self-control when you see flash sales online or in-store. As long as you don’t need the item that is being advertised at a discounted price, don’t bother buying.
You don’t want to waste any extra money that could have been put toward your savings goals.
18. Increase Your Income
Sometimes saving money is difficult when you don’t have enough in the first place. Imagine if you earned $3,500 every month, and by the time you finish paying your bills and rent, you only have less than 100 bucks in your checking account. How do you save? This is why you have to increase your income.
Speak to your employer and ask for a raise (if you deserve it), get another job, or start a side business.
When more money is pumped into your account, you have the freedom to save without pressure.
Final Words On How To Save Money Each Month
You don’t enjoy the impact of saving money overnight. In most cases, it’s a long-term goal you have to chase diligently. That’s why it’s a game of consistency. You have to fixate your mind on the future benefits even if the circumstances don’t encourage your savings habits.
More importantly, as you apply these tips on how to save money each month, don’t forget to track your progress. You need to know where you currently are and how long you have left to reach your ultimate goal.
Pin this for later!
