Everyone knows it’s important to save money, but not everyone knows a lot of ways to do it. Knowing how to save money fast can make a big impact on your finances both in the short term and the long term by generating extra cash and helping you build long-term savings.
The basic ways of saving money include spending less, developing good spending habits, and putting money away; following are 20 ways of saving money that show results quickly.
20 Ways To Save Money Fast
Prep for Grocery Shopping
Before going grocery shopping, make a shopping list. People who don’t often end up making impulse purchases and running up their bills. It’s better to shop for what you need, not for what your eyes want. Also, shop smart; for example, in most grocery stores, canned vegetables are cheaper than frozen and generic brands are just as good as name brands at way less cost.
Minimize Restaurant Spending
It’s fun to eat out once in a while, but it’s expensive. Cooking at home will save you a lot of money, and that includes preparing lunches for work. If you want something in between, try a meal plan from a meal delivery service.
Cut Down on Unhealthy Habits
Drinking alcohol and smoking not only put one at risk-of bad health consequences but are also expensive. The former is okay in moderation, but the latter is a proven killer, and quitting it or never starting at all will save a lot of money and maybe your life.
Map Out Major Purchases
Major purchases like homes, cars, and other big-ticket items should be planned out. When is the best time? How much will your down payment be? How will this affect your budget and monthly expenses?
Avoid Impulsive Spending
Not buying impulsively is a great example of how to save money fast. When you’re tempted to grab something at the checkout stand, for example, take a deep-breath approach and ask if you really need it.
Restrict Online Shopping
It’s easy to overspend when shopping online. You just add things to your cart. But then the bill comes due later. When possible, shop in person and use cash; the latter helps you stay within your budget and avoid credit card debt.
Get Creative With Gifts
Gifts for friends and family can add up without us noticing. Think about creative alternatives like acts of service instead of feeling you always have to buy something.
Lower Your Car Costs
Drive an affordable car that meets your needs, not the most expensive one you can buy. Look for lenders who offer lower interest rates. Consolidate trips to use less gas. Shop around for cheaper car insurance rates.
Bundle Cable and Internet
Changing your internet and entertainment plans is another example of how to save money fast. It’s cheaper to bundle cable and internet together. If you don’t watch much TV or prefer shows and movies, drop cable altogether and go with streaming services like Amazon Prime and Netflix.
Switch Your Cell Phone Plan
Often, we don’t need the biggest, most expensive plans for our phones. Switching to a cheaper plan saves money on your cell phone bill. If one month you need more capacity, you can purchase it, which is cheaper than paying month after month for capacity you don’t use or need.
Reduce Your Electric Bill
You can cut costs for utilities. Lower your electric bill, for example, by turning off lights you’re not using, installing energy-efficient appliances, performing energy audits, etc.
Cancel Unnecessary Subscriptions
If you have subscriptions for magazines, online services, or other things you rarely or never use, cancel them. Many subscriptions renew automatically, so it’s easy to forget about them while being charged for them.
Refinance Your Mortgage
If your mortgage includes higher interest rates than those currently available for new buyers, you can refinance. This is how to save money fast or get a cash injection for a big project like a kitchen remodel.
Set Savings Goals and Track Spending
Create a savings goal and a timeline for reaching it. Then make a budget that includes it, rent/mortgage, auto insurance, life insurance premiums, health insurance costs, and other recurring fees. Also, track transactions such as deposits and purchases. The more specific your goals are, the better, as you can chart a path to them more easily.
Pay Off High-Interest Debt
High-interest debt is a major impediment to saving money. You can prioritize paying it off, or you can look into consolidating or transferring debts into accounts that charge lower interest rates, which immediately saves money.
Keep Savings in a High-Yield Savings Account
As you build savings, keep them in a high-yield savings account separate from your regular checking account. This lets money grow in a stable situation. You might want to try online banks for this since transfers and deposits are so easy with them.
Look for Coupons and Sales
Be alert for money-saving opportunities like coupons and sales for grocery stores and retailers. The money you save can go directly into savings or go towards other expenses.
Sell Unwanted Items
You can build savings and/or create an emergency fund by selling items you don’t want or need. A garage sale can work, but you can reach more people through online options like Facebook Marketplace or eBay.
Earn Cash Back on Your Purchases
If you use credit cards, look into cards that return cash rewards on your purchases. Some cards offer points that people use for things like flights and hotels when they go on vacation, but that means more spending. Some companies may also offer loyalty programs that offer cash back on purchases.
Stop Paying for Convenience
Have you ever noticed that a bag of chips or a bottle of soda costs a lot more in a gas station than at the grocery store? You’re paying extra for convenience. Planning ahead or just skipping those convenience store stops outright will save you money.
How To Save Money Fast
In America, there’s a lot of pressure to spend, spend, spend, and a lot of people struggle to save money, much less know how to save money fast. We’ve looked at 20 good ways to do this, making it easier for you to attain financial stability and live your best life.
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Robyn Goldfarb
Hi! I am a millennial mom with a passion for personal finance. I have always been “into” personal finance but got inspired to start my blog after a period of extended unemployment. That experience really changed the way I viewed my relationship with money and the importance of accessible personal finance education.