There are so many different ways to increase your income. While the most obvious ways include getting a higher-paying job or taking on a side hustle, how about some new saving money strategies? There are many different money saving hacks out there that can help you:
- Get out of debt faster
- Save and invest money for both short-term and long-term goals
- Enjoy a more relaxed lifestyle focused on the simple pleasures in life
Read on to learn about the best money saving hacks you can try today.
Why You Should Save Money
Before I dive into the many different money saving hacks out there, let’s start with the main reasons why you should save money. Creating goals and sticking with them – especially financial ones – isn’t for the faint of heart. Our society teaches us to consume and spend. Saving money and practicing delayed gratification is something that the minority does. When you’re constantly bombarded by ads and billboards telling you to buy the newest tablet or phone, it’s no wonder you don’t have any money left in the bank at the end of the month!
Here are the main reasons why saving money is important:
Reduce or Eliminate Debt
Debt. When you hear this word, what comes to mind? If you’re anything like me, a sense of unease starts to settle upon you. This is especially true if you yourself carry some credit card or student loan debt. Creating and maintaining strong money-saving habits means you’ll actually have some cash left at the end of the month that you can use to pay off debt. Some types of debt aren’t bad, such as student loan debt you’ve acquired to help you work towards a better future. However, other kinds of debt such as interest accrued on a credit card mean that you’re spending more unnecessarily with the interest on purchases.
Become More Appreciative of What You Already Have
A culture of consumerism means a focus on acquiring more and more stuff that you may not need. When you don’t have a budget or are focused on saving money, it can become all too easy to drop $100, $200 or more on a quick shopping trip. Trying out real money life money hacks and sticking with a few can help you focus on what you have. How? When your goal is to save money rather than spend, you’ll think twice before making a purchase.
Instead of spending Saturday at the mall, remove yourself from temptation by staying at home. Call up a friend, invite him or her over, make a cup of coffee and sit on the porch. Focusing on life’s simple pleasures can distract you from wanting to go spend money. Learn to appreciate what you have and become a happier person!
Save Money for the Future
The number one benefit of saving money: you’ll be able to take care of future you. When you have extra cash sitting around, you can invest it towards your child’s education, retirement or another long-term goal. Don’t just let that cash sit idly in your bank account! If you have 3 to 6 months’ of living expenses saved up in an emergency fund or in your checking account, you can likely start investing. When you try and stick with different money saving hacks without feeling like you’re cutting corners, you’ll always have some cash to invest.
Investing is important. Why? The power of compound interest. When you start earlier in life, your money will have a longer chance to make interest on top of interest month over month and year over year. Focus on not only saving, but also investing – your future self will thank you.
** I am not a financial advisor – be sure to talk with a licensed professional first before making any decisions that impact your finances. **
The Top Money Saving Hacks to Start Today
Without further ado, here are the top money saving hacks that actually work. They fall into several categories:
- Food and restaurant – what you eat takes a huge part out of your budget. There is a big opportunity to save in this category.
- Home – everything from cleaning habits, how you do your chores and whom you live with have an impact on your finances.
- Unusual and funny ways to save money – aside from the more popular money saving hacks, there are more off-the-beaten-path strategies you can try out.
Money Saving Hacks at the Grocery Store and When Dining
Food can take up a major portion of your monthly budget. However, with smart planning, it is possible to significantly cut down on how much you spend. Let’s go over how to save money at the grocery store and when dining at restaurants.
The Most Important Money Saving Hack at the Grocery Store – Shop With a List
If you’re serious about saving, you must shop with a grocery list. When you go to the grocery store without a written account of what you need to buy, you’ll most likely need to go to every single aisle. Before you know it, your cart will be full of stuff that you didn’t plan on eating during the week. When you stick to a list, you’ll be a lot more likely to stay on budget when grocery shopping.
Pro tip: before making a grocery list, make a meal plan. First, go through your fridge, freezer and pantry to see:
- Which leftover dishes you can eat in the next couple of days
- What ingredients you can make use of before they expire
Next, plan out all your breakfasts, lunches and dinners for the next week. Search Pinterest for frugal dinner ideas or breakfast and lunch meal plans. From there, make a grocery list of all items you need to buy. Aim to shop for frugal foods that are healthy, filling, inexpensive and can be used in a variety of dishes. Some healthy, fresh and cheap foods to buy you should consider include:
- whole grain pasta
- rice
- tomatoes
- bananas
- potatoes
- carrots
- beans
- lentils
Next, write down the ingredients and group them by type. For example, first write down all fruits and vegetables you’ll need, then write down grains, meat, other protein, snacks, condiments, dairy and bread products. When you group the ingredients by area in the store, you’ll spend less time shopping. Spending less time in the grocery store means less time tempted to scoop up that bag of Doritos you’ve been thinking about for the entire time you’ve been there.
Compare Supermarkets’ Prices
Another one of the best tips to save money at the grocery store: comparing prices. If you aren’t comparing supermarkets’ prices before going shopping, you’re missing out! Use an app such as Flipp to find the cheapest price for everyday staple items, then go to the store with the cheapest item. While you may think a few dollars saved doesn’t matter, it really does add up. Just $10 saved per year means over $500 saved in an entire year.
Go to Stores with Price Matching Options
In addition to price comparing at supermarkets and grocery stores, you should try to shop at stores with price matching options. Price matching means that you’ll show the cashier a flyer or online ad showing the exact same product sold at both stores. The other store has a lower price. If the store does price matching, the cashier will sell you the item at the price the other store is selling it at. While price matching takes time and effort, it is still one of the best money saving hacks that can help you save hundreds of dollars over time.
Buy Generic Brands Over the Store Brand
Think about the last time you were at the grocery store and looked at the shelves. Did you see no-name branded soup cans? I’m guessing you saw Campbell’s soup cans right away. This is by design – companies want you to see and buy the brand name item. When the most expensive products are at eye level, it can be easy to just grab what you need without browsing.
Next time you’re at the store, look above and below eye level to see the generic brands. Even though the products may have a boring label, they taste just as great and are just as nutritious.
Money Saving Hacks So You Can Eat Out on a Budget
While eating at a restaurant is a lot more expensive than eating at home, we all need to treat ourselves every once in a while. Thankfully, it is possible to eat out on a budget Here are the top five ways to eat out on a budget.
Budget for a Restaurant Outing
Firstly, always include some cash in your budget for restaurant dining. When you budget for a restaurant outing, you won’t feel like you’re stealing from your savings account. There’s nothing wrong with treating yourself to a night on the town – just be sure to have the funds for it! A good restaurant budget is anywhere from $100 to $200 for dining out once or twice a month.
Go for Lunch Instead of Dinner
Going out for lunch instead of dinner is one of the easiest money saving hacks at the restaurant without feeling you’re depriving yourself. Restaurants often charge 20-40% less on the exact same dish at lunch as opposed to dinner. While the portions are sometimes smaller than the dinner course, they taste just as great. If you think you’ll still be hungry, eat a healthy, filling appetizer at home before heading out for lunch. Veggies and pita with hummus, fruit and peanut butter on sliced apples are all fantastic options for your pre-lunch appetizer.
Drink Water Before Going
When you drink water, you fill your stomach up and you’ll be less likely to order a dinner dish that you can’t finish. While drinking water isn’t a meal replacement, it can help you feel fuller longer and avoid ordering both an appetizer and a main course.
Order an Appetizer Instead of a Main Course
Similar to the lunch tip, eat a small snack beforehand or have a large lunch before going out for dinner. Appetizers are usually much cheaper than main courses. Alternatively, order 2 or 3 appetizers and split them with a friend. It’ll still be cheaper than both of you ordering one main course each.
Get a Birthday Discount
Is your birthday coming up? Hold out and go out for dinner on your cake day. Find a restaurant that offers a birthday discount. Some restaurants even offer a free dessert or appetizer on your birthday. Poke around Google and search up what restaurants are in your area.
Eat at an All-You-Can-Eat Buffet
A classic way to fill your stomach and keep your wallet full: the all-you-can-eat buffet. Go for a lunch buffet and load up on healthy carbs. If you eat enough, you may not even have to eat dinner. Again, eating at a restaurant is more expensive than eating at home, but an all-you-can-eat buffet is the most economical way to save money when going out for a meal. Just be sure not to overeat – a common mistake! Eat until you’re full, but don’t get sick stuffing your face.
Money Saving Hacks At Home
Wash Your Laundry in Cold Water
One of the most popular tips on saving money at home: wash your clothing in cold water. Washing clothing in cold water instead of hot water has two main benefits:
- Saving money on your electricity bill
- Longer lasting clothing – shirts, pants and other items washed in cold water generally last longer
Make Your Own Cleaning Supplies
Making your own homemade cleaning products is one of the easiest money saving hacks you can do at home. There’s no need for a $6 bottle of chemical-laden sanitizer. Instead, make your own cleaners such as one made out of water and vinegar. Check out this article from Chantel Mila on the top cleaning supply recipes you can make at home. From homemade all-purpose cleaners to soaps, homemade cleaning supplies are not only cheaper than buying them, but they’re better for the environment – and your health.
Turn Down the Heat and Put On a Sweater
If you live in a region that experiences cold winters, you’ll most likely be blasting the heat during the chilly months. Utility bills are a huge expense that can really eat into your monthly budget. Instead of turning up the heat relatively high, put on one or two thick sweaters, a pair of warm pants or leggings and cozy socks. Even turning down the heat by a couple degrees for several months can shave dollars off your monthly bills.
Turn Off the Air Conditioning and Invest in a Fan
When the weather gets warmer, it can be tempting to blast the air conditioning. Aside from air conditioning contributing to global warming, blasting it day and night can cause you utility bills to spike. Resist the temptation to constantly have the air conditioning turned on. Instead, invest in a few oscillating fans and place them around the house. Additionally, keep the windows open at night to let your home cool down. While air conditioning has its place, even choosing to run it for only an hour or two a day instead of all day can really help you cut down on your utility bills.
Negotiate Your Utility Bills
Been a loyal customer of XYZ Internet Company for a while – say, a year or more? Call the company up and ask for a discount. In the likely event they won’t have any available, try calling again in a couple weeks. Tell the company rep that you’re switching providers. The representative may offer you discounts then and there – they want to keep your business! At the very worst, they’ll say “No, we don’t have any offers right now.” Asking for a discount is well worth it – even $20 or $30 saved per month can really add up over time.
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Live with Family or Friends or Find a Roommate
Another one of the top money savings hacks at home is living with another person. If you’re used to living alone, this may be a huge challenge, but it’s worth it for the money saved. When you choose to live with a roommate, you can cut your housing expenses in half or more. Don’t want to live with a stranger? Live with a friend.
If you don’t know anyone who is looking to move in with you, see if it’s possible to move back in with your parents or other family members. This solution isn’t for everyone. People with family conflicts or loved ones who are far away may not be able to take advantage of this money saving strategy, but if you can, you should seriously consider it. Even if your family members ask you to chip in by paying some rent, you’ll still save some serious cash. If your family members insist that you can stay for free, be sure to contribute in other ways such as doing chores, cleaning, cooking or grocery shopping.
Declutter Your Home
Decluttering your home is another one of the best money saving hacks. Choosing to live in a clean and clutter-free space means it’ll be easier to find clothing. If you can’t find a black dress you need for tonight’s special date night dinner, you may panic and go out to buy another dress. When your room is cluttered, you may forget the clothing items you already own and may accidentally purchase duplicate items. On the other hand, if your space is neat and organized, you’ll be able to find what you need quickly.
Not sure where to start and want to declutter fast? Begin by decluttering your bedroom. The bedroom is one of the top areas where one tends to acquire junk by shoving things under the bed and in the closet. Afterwards, move on to decluttering the kitchen, garage and other spaces you frequent. Take it slow and go step by step. Even 30 minutes per day spent on decluttering really adds up.
Low and No Spend Challenges
Low and no spend challenges are great ways to save money in the short-term and long-term. These types of challenges mean that you’ll cut down on how much you spend on ‘stuff’ and experiences not necessary to your survival, including but not limited to:
- Takeout food and coffee
- Restaurants
- Alcohol
- Vacactions
- Body modifications
- Shoes and clothing that you don’t need
Money saving hacks such as the low spend or no spend challenge are ideal for those who:
- Are in debt and want to pay down or eliminate their financial obligations to others
- Those who need to replenish an emergency savings account or fund an unexpected expense
- Anyone who wants to kickstart good saving habits
- Those who are new to saving money
- Individuals and families who want to focus less on consumerism and more on the simple pleasures in life that can bring immense joy without spending a lot of money
Two Types of Low Spend Challenges
Low Spend Month
A low buy month or no spend month challenge is exactly what it sounds like – spending a low amount. For an entire month, you’ll drastically cut your spending on non-essentials by a certain percentage or dollar figure. You can either cut spending across the board or choose how much you’ll reduce spending by in each category.
Cutting Spending on All Non-Essential Categories
The simplest way to do a low a no spend month is to choose how much you want to reduce your spending by. Firstly, you’ll need to know approximately how much you currently spend on non-essentials. Log into your bank statements and add up how much you spent on non-essentials over the past 3 months. For a clearer picture of your spending, take the average of the last 3 months. For example, if you spent $300 in January, $450 in February and $500 in March, you spent an average of $417 per month.
Next, decide how much you want to reduce your spending by. A general rule of thumb for a low spend month is about a 60-70% reduction. If you’re brand new to saving money, go with a lower amount such as 50%. For example, if you reduce your average spending of $417 per month by 70%, you’ll have approximately $125 to spend on non-essentials next month ($417 x 30% = $125.10). Simple, right?
Cutting Spending on Specific Categories
If you’re anything like me, you spend a lot more on certain fun things than other fun stuff. For example, I’m a huge traveler but don’t spend a lot on clothing. You can do a low spend month challenge where you reduce spending on non-essential clothing by a lower amount than, say, travel. For example, if you spent:
- $250 on travel last month
- $100 on clothing last month
Reduce your travel budget by 50% and your clothing budget by 80%. Pick numbers that work for you. If this process sounds like too much work, keep it simple by reducing your overall spending on non-essentials by a certain dollar amount or percentage. Do what works best for you!
Low Spend Year
A low buy year is just like a low spend month, except you’ll commit to cutting down on non-essential purchases for an entire year. This challenge isn’t for the faint of heart. Cutting down on trips to the movie, takeout and how often you can indulge in your favorite ice cream for an entire 365 days won’t be easy – but it’ll be worth it. If you save just $200 per month by trying out a low spend year challenge, you’ll save over $2,000 – $2,400 to be exact. Think about how much debt you can knock out – or what special vacation you can go on after the year is up!
No Spend Challenges
No Spend Month
If you want to save a larger amount of money in a short period of time, try a no spend month. This challenge is exactly what it sounds like – completely cutting out spending for an entire 30 days. This means no takeout, no nail salon appointments, and, yes, no morning trips to Starbucks for your daily caffeine hit.
A Challenge for the Ambitious Saver – No Spend Year
Feeling ambitious and have you succeeded at a low spend month or low spend quarter of 3 months? Go big with a no buy year challenge. No spending for a year requires immense discipline. However, if you’re committed, you have the potential to save hundreds, if not thousands of dollars per year.
While it’s great to want to save as much money as possible, it’s crucial to have a reward in mind for successfully completing a no spend year. Even if the main point of a no spend year is to reduce your debt, allocate a portion of the money you’ll save towards a small treat. Even if it’s a weekend getaway or just a nice dinner out on the town, a reward will help you keep your eyes on the goalpost.
Low and No Spend Challenges and Sustainability
While doing a low buy or no buy challenge is a great way to kickstart your saving habits, become more grateful for what you have and maybe even reduce your debt, depriving yourself long-term isn’t sustainable. When you significantly or completely cut down on the things in life that bring you joy, you’ll have less to look forward too. Additionally, depriving yourself of fun and enjoyable activities may cause you to go on a spending rampage.
It’s the same way a person who is trying to lose weight needs to keep eating – albeit healthier. When you starve yourself by going all day without eating, you’ll be much more likely to go out and binge on an extra large cheeseburger with fries. Overall, you may not be eating as much, but the food you eat is less nutritious. In the same way, if you go for long periods of time without treating yourself to something, you’ll be a lot more likely to overspend the next time you’re in the mall. Avoid this possibility from happening by setting an end date for the no spend or low spend challenges and rewarding yourself at the end of the challenge.
Even something small like ordering pizza or buying that new phone case will keep you motivated to stay on track with positive saving and frugal living habits.
Unusual Money Saving Hacks
Tried out the food and home money saving hacks but want more ways to keep your cash in your wallet at the end of the month? Try out some extreme frugal living ideas, like the clever ways to save money listed here. Here are some of my favorite unusual ways to save money:
- Freeze your credit cards and only pay cash – when you pay cash, you’ll feel the money leaving your hands. Rather than using plastic, you’ll think twice before the money leaves your hand.
- Cut your own hair – while not everyone has the luxury of low-maintenance hair, you should consider this option. Cutting your own hair can save you hundreds of dollars per year.
- Join a buy nothing or clothing swap group – find a local group where people give away items they don’t want completely free of charge. Just be sure to pay it forward and offer your own items you no longer need. There’s no better way to stock up a new wardrobe or replace old furniture with new-to-you pieces that others don’t need!
- Save hundreds per year by replacing your weekly purchase of fresh florals with fake flowers.
- Living with roommates, family or in a van or on a houseboat – alternative living strategies can help you save a ton.
- Read at the bookstore – instead of buying books, go to the bookstore and spend an hour or two reading a book. If you’re a fast reader, you can try getting through a book a week by only going once or twice a week.
Cheap vs. Frugal When Trying Out Unusual Money Saving Hacks
While the money saving hacks listed above are all great, be sure to not take things too far. Don’t engage in extreme money saving hacks that cost you your health or relationships. For example, if you want to save money on going out with friends, you may be tempted to not order anything or bring a snack to share at a party. Partaking in such activities can damage relationships – you don’t want to be the cheap friend.
The difference between cheap and frugal is subtle. Signs of a cheap person include:
- Skipping out on their contributions to a party (food, drinks etc.)
- Choosing not to participate in any activities that cost money
- Forgoing personal hygeniene to save a few dollars (not washing their hair, wearing clothes too long)
Additionally, when someone is cheap, they may end up spending more money in the long run. For example, if they keep buying the cheapest t-shirt that wears out every 6 months and cost $20, they’ll end up spending a lot more money than buying a quality $50 t-shirt that lasts 10 years. Shopping frugal saves you money in the long run. Each time you buy something or engage in an activity, ask yourself, “Am I being cheap or just extremely frugal?”
A Final Word on Money Saving Hacks
There are so many fun and easy hacks to make money that you can start today. From the grocery store to your home, try one or two challenges for yourself and see how it goes. Saving money will make you wealthier and will also help you learn to appreciate what you have. If you’re feeling up to it, do a money saving challenge such as a low buy month challenge or no buy month mission. Your wallet and your mental health will thank you!
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Janita is a frugal living expert and owner of Frugal Fun Finance. With over five years of personal experience finding and trying out the best ways to make and save more money, she's eager to share her knowledge. Janita's strategies have helped her save thousands of dollars for funding investments and traveling to over 20 countries.
Janita completed training in personal finance at The University of Western Ontario and McGill University, two prestigious Canadian universities. Her expertise has been shared on GoBankingRates, Yahoo Finance, and NASDAQ.com.
