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Tips for Saving Money

If you need to save more money than you can easily pry out of your paycheck, here are a few ideas that financial planners often suggest to consumers.

1. Manage Your Spending

People often find they’re frittering away funds on things they don’t need and could easily live without. Record every penny you spend for a certain period, whether that's a week or a month. You can use a notebook or an expense-tracking app, such as Clarity Money or Wally.

Some apps even save for you. For example, the Acorns app links to your payment card, rounding up your purchases to the next dollar, and moving the difference into an investment account.

2. Consider Cash Back

If you buy things, you truly need, it may make sense to sign up for apps such as Ibotta or Rakuten. 

Apps like these offer cash back from retailers on groceries, clothing, beauty supplies, and other items.

You can also use a cash rewards credit card, which offers 1% to 6% in cash on each transaction.  This tactic only works if you transfer your savings to a savings account and always pay your credit card bill in full every month.

3. Focus on Major Expenses

Clipping coupons is fine, but you’ll save much more money by paring back on the biggest bills in your life. For most of us, that’s things like housing, insurance, and commuting costs. If you have a mortgage, could you save by refinancing it at a lower rate? 

Could you shop around for lower premiums or bundle all your policies with one carrier for a discount? 

If you drive to work, is there a cheaper alternative, such as carpooling or working from home once a week?

4. Don’t Go Crazy

You might want to dine out less often, try to get a few more wearing's out of your wardrobe, or drive the old car for another year. But unless you enjoy living like a miser—and some people do—don’t deny yourself every pleasure in life. 

The point of saving money is to build toward a financially secure future—not to make yourself miserable in the here and now. 

How Can I Save $1,000 Fast?

If you're looking to stash away $1,000 cash right away, here are a few options. Sign up for direct deposit through your employer (if you haven't already) and schedule automatic transfers to a savings or other emergency account. You can pad this account by signing up for cash back apps or credit cards. 

If you want to sock away money for retirement (which, yes, counts as savings), take advantage of a 401(k) or automatic withdrawals from your account into an IRA.

What Is the 30-Day Rule?

The 30-day rule is simple. It's a savings rule that aims to help you get your mindset onto saving rather than spending. If you're online or walking through the mall and see something you like and are about to check out, stop. Log off or turn around. 

Delay the purchase off for a month and, instead, put the money you would have spent into your savings account. Once you're beyond 30 days, you can revisit the purchase again.

What Is the Best Way of Saving Money?

You need discipline and a plan to save money. Know what your goals are and how much you need to set aside. Take advantage of the options available to you, whether that's an employer-sponsored retirement account or an IRA. 

Make sure you have assets that can be easily liquidated when you need money during emergencies. And be sure to consult a financial professional to help point you in the right direction.