How to Save Money

Although there isn’t a one-size-fits-all approach to saving money, starting early is one of the most effective strategies. Beyond that, understanding where your money goes can help you identify areas to cut back, such as monthly bills, groceries, utilities, transportation, entertainment and travel.

Additionally, setting clear savings goals and tracking your progress can keep you motivated. Take advantage of windfalls like bonuses or tax refunds by putting them directly toward your savings. These strategies will help you build a solid savings plan and stay on track.

A closer look at recurring bills can uncover opportunities to save on monthly spending and redirect that money toward savings. Small savings from your bills can add up significantly over time.

Whether it's a streaming service, gym membership or magazine subscription, canceling unused services frees up extra monthly cash. Review your bank and credit card statements to identify recurring charges. Use apps like Truebill or Hiatus to track and cancel subscriptions for you. Before canceling, check if you can pause the service or downgrade to a cheaper plan if you still want occasional access.

Cable, internet and phone bills are often negotiable. Contact your provider and ask for a better rate or mention competitor offers. Many companies will offer discounts or promotions to keep you as a customer.

Cell phone plans can be one of the most significant recurring expenses, but you may not use all the data or features you're paying for. Switching to a cheaper plan, especially one offering pay-as-you-go or lower data limits, can save you monthly money.

Audit your data usage to see if you're paying for more than you need. Compare plans from major carriers and budget-friendly alternatives. If multiple people are on your account, look for family plans or group discounts.

Insurance premiums, whether for auto, home or health insurance, can be a significant expense. Every year, take the time to compare rates from different providers to see if you can find a lower premium for the same level of coverage. Be sure to compare not only the cost but also the coverage details. Before switching, don't hesitate to ask your current provider for a price match or additional discounts.

Credit cards can come with various fees, such as annual fees, foreign transaction fees or late payment penalties. If you're paying an annual fee, call your card issuer to see if they can waive it or offer you a no-fee card. Avoid foreign transaction fees by using a travel-friendly card. For late fees, set up automatic payments or calendar reminders to ensure your payment is on time every month.

Grocery bills are one of the most consistent expenses, but there are plenty of ways to save on food costs and create an affordable diet that works for you.

Generic or store brands often have the same ingredients as name brands but come at a much lower price. Opting for generics in categories like pantry staples, dairy and cleaning supplies can help you save on grocery budget without compromising quality.

Compare generic and name-brand products' ingredients and nutritional labels, they're often identical. Start with non-perishables or household items and gradually switch more of your purchases to generics. Many stores offer satisfaction guarantees, so you can always return the product if you're not happy with it.

Meal prepping saves you money by reducing impulse purchases and limiting how often you eat out. By preparing all your meals for the week, you can plan your portions, minimize food waste and avoid the temptation to grab takeout when you're too busy to cook.

Check your store's weekly ad for sale items and build your meal plan around those ingredients. If chicken is on sale, plan to cook a few chicken-based meals that week. Consider stocking up on discounted non-perishables or freezable items for future meal plans.

Non-perishable items like rice, pasta and canned goods are usually much cheaper when bought in bulk. These items have long shelf lives, so you can stock up when prices are low and avoid paying more later.

Electricity, heating and water costs can take up a large chunk of your monthly budget, but with some small adjustments, you can significantly save on utility bills.

A programmable thermostat allows you to adjust your home temperature based on when you're home or away. Set your thermostat to lower or raise the temperature when you're asleep or out of the house. For example, lowering the temperature by 7 to 10°F for eight hours daily can save up to 10% on your annual heating and cooling bills. Invest in a smart thermostat for even more control, as many models can learn your schedule and adjust automatically.

Switching to energy-efficient LED or CFL light bulbs reduces electricity usage and lasts longer than traditional incandescent bulbs. Start by replacing the most frequently used lights in your home, such as those in the kitchen, living room and bathroom. Look for Energy Star-rated bulbs for the best efficiency.

Electronics like TVs, computers and gaming consoles consume energy even when turned off, often called "phantom power." Disconnecting devices or fully powering them down when they aren't in use can help save energy.

When shopping for new appliances, compare each model's energy ratings and operating costs. Although energy-efficient appliances may have a higher upfront cost, they save you money over time through reduced utility bills. Look for rebates or tax incentives available for purchasing energy-efficient models.

Everyday purchases can add up quickly, but there are plenty of ways to spend less by being strategic about when, where and how you shop.

Plan your larger purchases around seasonal sales, such as Black Friday, back-to-school sales and holiday clearances. Sign up for store newsletters to get exclusive discounts or early access to sales. Don't forget to use loyalty points or rewards programs to stack additional savings.

Thrift stores, consignment shops and online platforms often offer gently used items at a fraction of the retail price. Visit thrift stores regularly, as inventory changes frequently. Check out platforms like Poshmark, eBay and Facebook Marketplace for online options.

Coupons and cash back apps can offer immediate savings on groceries. You can find digital coupons through store apps or cash back apps like Ibotta or Rakuten, which give you money back on everyday purchases.

With simple strategies, you can lower transportation expenses and keep more money in your pocket each month.

Buses, trains and other public transit options help you avoid the expenses of gas, parking and car maintenance. Consider monthly or annual passes for additional savings, especially if you commute regularly. Use apps like Google Maps, Moovit or Transit to plan your routes efficiently and combine walking or biking with transit to reduce fares. Many cities offer discounts for students, seniors or low-income riders. Check if you're eligible.

Keeping up with regular car maintenance prevents more expensive repairs down the line. Routine services like oil changes, tire rotations and brake checks help extend the life of your vehicle and keep it running efficiently. Stick to your car's maintenance schedule and handle small repairs as they arise to avoid costly issues later. Consider learning basic maintenance tasks, like changing oil or replacing air filters. Sign up for dealership or mechanic mailing lists to get service coupons and discounts.

Regularly comparing rates can help you find lower auto insurance premiums without sacrificing coverage. Ask your current insurer about discounts for bundling home and auto insurance or safe driving programs. You may also qualify for lower rates if you drive fewer miles, so update your annual mileage with your insurer.

Download apps like GasBuddy to locate the lowest gas prices in your area. Plan your fill-ups strategically as prices tend to be lower earlier in the week and some stations offer loyalty programs or discounts for paying with cash. Combine trips to reduce your overall gas consumption.

Entertainment doesn't have to break the bank. From free events to shared services, there are many ways to enjoy your downtime without overspending.

Check local event listings online or through apps like Eventbrite for free community events. Many cities offer free or discounted admission to museums, zoos and cultural centers on certain days. Outdoor activities like hiking, picnicking or visiting a beach are always budget-friendly.

Evaluate how many streaming services you use and cut the ones you don't need. Many platforms offer free trials or discounted bundles if you subscribe to multiple services. Opt for ad-supported streaming service versions, which often come at a lower cost than premium versions.

Sharing streaming accounts with family or friends is a great way to split costs while enjoying your favorite shows and movies. Coordinate with family or friends to see which services you can share, ensuring it's within the terms of service. For example, Netflix and Hulu allow for multiple profiles on one account. Just be sure to communicate about account usage to avoid conflicts over who's watching at any given time.

Public libraries are treasure troves of entertainment, offering free access to books, movies and even video games. Many libraries also have digital lending services that let you borrow e-books or stream content from home. Sign up for a library card if you don't already have one. Take advantage of online platforms like Hoopla or Libby, which let you borrow e-books, audiobooks and movies without leaving home.

Your home is likely your biggest expense, but there are ways to make that cost more manageable.

Renting out a room, basement or even parking space can be a great way to offset housing costs. Whether it's a short-term rental through platforms like Airbnb or a long-term tenant, this extra income can help with mortgage payments or other home-related expenses.

Insurance premiums vary significantly between companies and shopping around for a better homeowners and renters insurance rate could reduce your annual costs without sacrificing coverage. You may also find discounts by bundling insurance or updating your home's safety features.

PMI (private mortgage insurance) is an additional cost that lenders require if you make a down payment of less than 20%. If you already have PMI, check with your lender to remove the requirement once you've paid 20% of your loan.

Regular maintenance and smart shopping for home tools and services can prevent larger, costlier problems in the future.

Begin with simple tasks like fixing leaky faucets or replacing broken tiles. Use online resources like YouTube tutorials or DIY blogs for step-by-step guidance. Invest in basic tools such as a hammer, screwdriver set and wrench to handle common repairs. Start small, and as your confidence grows, tackle more complex repairs.

Performing simple seasonal checks and cleanings can extend the lifespan of your home's key systems. Create a seasonal maintenance checklist to keep track of tasks like cleaning your HVAC filters, checking for drafts around doors and windows and inspecting roof shingles after storms. Schedule service appointments for your HVAC system and water heater to ensure they're running efficiently.

From leveraging telemedicine to opting for generic medications, smart choices can help you stay healthy and keep your budget in check.

Telemedicine allows you to consult with doctors from the comfort of your home, often at a fraction of the cost of in-person visits. Many health concerns, from minor illnesses to routine follow-ups, can be addressed online, saving time and money. Check with your health insurance provider to see if telemedicine services are covered. Many employers also offer access to telemedicine at reduced rates. Use platforms like Teladoc or Doctor on Demand for virtual appointments that can be less costly than a traditional office visit, especially for minor issues.

Use comparison tools like GoodRx or Blink Health to check prices at different pharmacies. These apps can also provide discounts that make your prescriptions more affordable. Ask your doctor about cheaper alternatives or see if switching to a 90-day supply can help lower the per-dose cost.

Many community centers, gyms and online platforms offer free or low-cost fitness classes, allowing you to maintain a healthy lifestyle without breaking the bank. Check out free fitness apps like Nike Training Club, which offers various workouts, from yoga to high-intensity interval training (HIIT). Local community centers or parks may offer free group classes. If you prefer in-person sessions, look for gyms or studios that offer discounted class bundles or first-time deals.

Check with your HR department or employee benefits portal to see available wellness programs. Common offerings include discounts on gym memberships, access to mental health services and financial incentives for completing health assessments. If your employer offers a health savings account (HSA) or flexible spending account (FSA), use those funds for eligible health expenses to save on taxes.

Traveling doesn't have to be expensive if you plan wisely and make smart choices.

Use tools like Google Flights or Skyscanner to track flight prices and identify cheaper travel dates. Avoid peak travel times like holidays and weekends. Flying midweek or during shoulder seasons — just before or after peak travel times — often lowers prices. Set price alerts to get notified when fares drop for your desired destinations.

Travel rewards credit cards allow you to earn points or miles for every dollar you spend. These rewards can be redeemed for flights, hotels and other travel-related expenses, significantly reducing out-of-pocket costs. Look for cards with sign-up bonuses or extra points for spending in categories like dining or travel. Pay your balance in full each month to avoid interest charges, which could negate your savings.

Plenty of budget-friendly alternatives like hostels, vacation rentals and even home exchanges can keep your lodging costs low. For longer trips, look into home exchange programs or consider housesitting. Many budget hotels also offer loyalty programs that can lead to discounts or free stays over time.

Here are some of the most frequently asked questions about saving money, along with helpful answers.