Although long-term savings are important, sometimes getting quick results can motivate you to stick to your savings goals. Over time, a small area of savings can add up and be used to contribute to an emergency fund or to finance future dreams.
Of course, everyone’s spending habits are different. See which of these suggestions can make the biggest difference to your bottom line.
1. Cancel unnecessary subscription and membership services
To be an effective saver, get rid of unnecessary subscriptions. Maybe you signed up for a new streaming service for a free promotional period but forgot to cancel. Or maybe you have a gym membership that you no longer use. Open your credit card or bank statement each month to look for recurring subscription charges.
You do not need an account at a particular institution to apply for help. There are several fintech services—like Trim and Truebill—that are designed to help you find ways to save on subscriptions and other bills.
2. Automate savings with the app
If you often forget to put money into your savings account or struggle to know how many socks go away, consider using an app that does the work for you.
There are many apps that will automate your savings. Qapital and Digit are two options. This automatic savings app is designed to automatically transfer a predetermined amount from your paycheck to your savings.
You won’t get the highest annual percentage yield (or sometimes any) on your deposits with this app, so if you’ve been saving a bundle, consider transferring your money to a high savings account.
3. Set up automatic payments for bills if you make a fixed salary
We are busy. It is very easy to forget to pay all your bills on time. One easy way to save money is to pay your bills when they are due, if you can.
The company charges late fees for overdue balances. While this may be as little as $5 here or $10 there, the cost quickly adds up. Credit card late fees can get even more expensive.
People with irregular incomes may want to turn off automatic bill payments and consider trying a service like Steady, which connects you to side gigs and other earning opportunities close to your pay and bill dates.
Some banks allow you to set rules on your digital banking account. At Chase Bank, online banking customers can set up automatic savings rules so that when, for example, they receive a $1,000 deposit, the bank automatically transfers $100 to their savings account.
4. Switch banks
Banks make a lot of money from account fees. In fact, banks are making more than $8 billion in 2021 in overdraft and insufficient funds charges, according to the Consumer Financial Protection Bureau.
It’s easy to avoid paying monthly fees, especially with online banking. Nearly half (46 percent) of checking accounts do not earn free interest, according to Bankrate’s 2022 checking account and ATM fee study. Some banks will even offer generous bonuses just for opening an account.
For a savings account, look for one that pays a competitive yield. Compare savings account rates and fees to find one that fits your needs.
5. Open a short-term certificate of deposit (CD).
A one-year CD can help you earn more interest than a savings account. In addition, CD results are usually fixed; as long as you keep money in the CD through the duration of the term, you’re guaranteed to get the opening APY.
One important caveat: Avoid CDs if you think you’ll need the cash before the CD period ends, so you don’t have to pay early withdrawal penalties.
6. Sign up for rewards and loyalty programs
Sign up for discount cards at grocery stores and drug stores in your area.
Using these programs regularly can help you save money at checkout or maybe even help you earn rewards for future purchases. Make sure that you will not be lured into buying unnecessary things by attractive offers.
7. Buy with cash or set the control on the card
You can trick your brain into saving money every time you go to the store by using cash instead of a credit card to make purchases. Whatever cash you have has a spending limit. Check out cash content trends to explore this idea further.
It is very easy to lose sight of the limit with a credit card.
8. Stop paying for convenience
Paying for convenience can save you time, but it can cost you money.
Taking extra time to make your own coffee or cleaning and fixing things around the house can boost your bank account.
Choose to reduce expenses on things you care less about. For example, maybe you value the experience of going to a coffee shop, but you can cut down on how many times you order delivery food.
9. Get cash back on purchases
Even when times are the hardest, you still need to spend money on the things that matter, so you might as well get your money back. There are cash-back credit cards that can help you collect cash back on your purchases. Some don’t even have an annual fee.
Your existing credit card may have cash back offers at certain retailers, but you may have to choose to redeem these rewards. These offers may have expiration dates or other terms and conditions, so check back to make sure you’re not caught out.
Cash-back apps may be an option to consider before you start shopping for a new credit card.
10. Re-evaluate recurring bills
Looking at your cable, satellite or streaming options can save you money. You may start with a good offer from your cable or satellite provider, which disappears after the initial period. Finding a new deal after a few years can save you money.
There are also apps, such as Rocket Money, that can help negotiate bills for you. These apps are often free but take a percentage of your earnings if they help you save on bills.
11. Look for coupons and sales
Planning with coupons and checking sales can make a big difference. Browsing in-store and online brochures can help you get great deals and save money. Website extensions, such as the Honey browser add-on, search for coupon codes for you.
12. Selling unwanted items
Sell things you don’t need for a quick cash injection.
Look in your closet, attic, garage or storage space to find clothes or boots or hiking boots you no longer wear. Then, post the item to a popular online marketplace, such as eBay or Poshmark.
Garage sales can be an option for selling many items at once.
Whatever approach you take, do your homework to avoid regrets. Make sure you know what the item is worth before selling it for less than it is worth.
13. Re-evaluate housing costs
Housing costs—such as rent or mortgage payments—are some of the biggest expenses in most budgets. Moving to a cheaper place can help you save money immediately. Mortgage refinancing can help you save money on monthly payments and in the long run. But make sure it suits your situation.
14. Shop around for insurance
Shopping around for insurance can help you save big. Sometimes you will find a better deal as a new customer or you can contact your existing insurance company to ask them to lower their current rates if they have gone up. Combining insurance products with the same insurance company can also help you save.
15. Limit energy consumption
By reducing the amount of energy you consume, you not only help the environment but also reduce your monthly bills. Some quick ways to save money on energy consumption include unplugging electronic devices when they’re not in use, switching to LED light bulbs and lowering the thermostat a few degrees at night during the colder months.
16. Downgrade credit card annual fee
Sometimes annual fee credit cards can offer real benefits. But it may not make sense to pay this annual fee if the card stops offering benefits or if you don’t use it fully. Downgrading to a card with no annual fee may be a better fit for you, if that’s an option. Call your issuer to see if you can downgrade your current card to a no-fee card.
17. Cook your own meals
Food can be a big expense in your budget. Prepare your upcoming meals and have a clear understanding of what you need from the grocery store. Make a list, look for coupons, and try not to buy anything that isn’t on the list.
Even without coupons, buying food at the grocery store is cheaper than ordering carry out or eating out.
18. Try not to spend a day
Not spending money in days or weeks can help you save money quickly. This can force you to think about every dollar you spend. After a day (or days), you may also realize that your spending habits have improved.
19. Make a budget
Determining your spending is a way to find areas where you can waste money. This can be an eye-opening process.
The purpose of budgeting is to set guidelines for how much you spend and how much you save each month. It can give you insight into where you can cut back on spending, and can incentivize you to make savings goals.
20. Eliminate one habit of wasting the day
There is probably one treat or convenience that you pay for on a daily or regular basis that you can do (or less often). Over time, you may get used to skipping this item and it will no longer be a habit.
By following a plan and using some discipline, you can find more money at the end of the week or month, and in time, the year.