How To Save Money

You can save money, even if you’re on a tight budget, though you might need to start small. It also pays to be patient and consistent. Even setting aside $10 or $50 a month will add up eventually.

As for how to save money, you’ve got options. Here are 31 of them.

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Key Takeaways

• Small, consistent amounts add up. Setting aside even $10 to $50 a month builds momentum, so start where you can and increase it over time.

• Automate to stay consistent. Routing part of each paycheck straight to savings removes the temptation to spend it first.

• Park savings where they grow. Top high-yield savings accounts pay around 3.5% to 4%, far above the 0.38% national savings average, per the FDIC.

Summary generated by AI, verified by MoneyLion editors

1. Make a Budget

Start by creating a household budget. Knowing how much money you’ve got coming in and going out each month will give you clarity on how much you can reasonably save. It could also show you areas where you can cut back so you can save even more.

2. Use a High-Yield Savings Account

A high-yield savings account (HYSA) earns more interest than a traditional savings account. Currently, many HYSA accounts offer interest rates from 3.50% to 4.00$. By comparison, normal savings accounts often have APYs below 1.00%.

Many credit unions and banks offer HYSAs, so shop around and compare your options. Be wary of any fees or limitations that come with opening the account, or your savings could be impacted.

3. Open a Certificate of Deposit

A certificate of deposit (CD) is a type of high-yield savings account, too. The main difference between it and a typical savings account is that you can’t access your money once you’ve deposited it — at least not until a certain period of time has passed. If you try, you’ll likely get hit with a hefty penalty.

If you can hold off on accessing your funds, a CD can be beneficial. The money in the account earns interest until the term ends and you can withdraw it. You’ll get the original amount you put in plus that interest.

4. Set Up Automatic Savings

Automating your savings makes it easier to save consistently. Contact your bank to see what kinds of options they have here. Some will let you set it up so a percentage of each paycheck ends up straight in your savings account. Others will let you choose a specific amount, like $50 or $100. Just make sure you have enough left over to pay for necessities.

5. Pay Off Your Credit Card Debt

Credit cards tend to have high interest rates that make them hard to pay off. The more time it takes you to pay yours off, the more you’re paying in interest. At the same time, dealing with debt makes it harder to save.

If you have high-interest debt, prioritize paying yours off if possible. Make sure you have a small emergency fund first so you can handle unexpected financial expenses without taking on more debt.

6. Make a Meal Plan

Planning out your weekly meals can save you money on groceries. Write down what you’ll need, head to the grocery store and try only to purchase the items on that list. While you’re at it, avoid going out to eat if you can. Any money you don’t end up spending on food can go straight toward your savings (or debt).

7. Use Your Tax Refund

The average personal tax refund this year is $3,275, according to the IRS. When you get yours, resist the temptation to spend it. Instead, put a huge chunk of it toward savings.

And if you do want to reward yourself, you can always treat yourself to something nice. Spending $50 or even $100 of a $3,000 refund isn’t something to feel guilty about, after all.

8. Compare Credit and Loan Options

If you need to use credit or take out a loan, compare your options carefully. Check the terms, rates and fees to see which product works best for you.

Also, use an online loan calculator. That way, you’ll see the true cost of credit (monthly and total) before committing to anything.

9. Live Below Your Means

It’s way easier to spend money than it is to save, especially when you’re already struggling to make ends meet. One of the best things you can do for yourself is to live below your means.

This might mean more than cutting back where you can. It could also mean getting roommates or moving to a cheaper part of town. Or it might mean sticking with a beat-up car that still runs rather than trading it in for a newer model. It’s not always pretty, but living below your means can really alleviate financial pressure.

10. Set Savings Goals

Start small with your savings goals. Tell yourself you want to save $100 and then set smaller goals to help you achieve that. For example, you might need to set aside $25 a month for four months to get there. Once you’ve hit the first main goal, choose a slightly bigger one.

Give each goal a purpose, too. Is it so you can buy a new laptop or afford a wedding gift for your sister? Whatever the case, knowing why you need to save can help keep you motivated.

11. Build an Emergency Fund

A good amount to start with is $1,000.

Once you’ve got that amount, the goal is to have three to six months’ worth of expenses set aside for emergencies. You don’t need to get there overnight, so take your time working up to that. Use a HYSA for your emergency fund to help your money grow faster.

12. Refinance Your Mortgage

If you’ve got a mortgage with home equity built up, refinancing could lower your monthly loan payment. It might even get you a reduced interest rate, though it can extend your repayment term.

13. Remove Your Unused Subscriptions

Instead of paying for streaming services or gym memberships you rarely use, cancel them. It usually only takes a few minutes. Afterwards, you’ll have extra cash in your budget.

14. Change Your Phone Plan

The average monthly phone plan costs $157, according to whistleout. Switching to a cheaper provider could save you quite a bit. For example, Consumer Cellular starts at $20. All that extra cash could go toward savings.

15. Buy Certain Things in Bulk

If you’ve got a membership to a place like Costco, use it to buy nonperishables or frozen items in bulk. They’ll last a lot longer than perishables and tend to have a lower per-unit price. As long as you’re going to use them, it’s worth the higher upfront cost.

16. Purchase Cheaper Alternatives

Generic goods are often cheaper than name-brand items, though you’ll want to check the per-unit pricing just in case. Much of the time, the quality is also on par with the more expensive goods.

17. Be Selective About Buying Gifts

The holidays are an expensive time of the year. As per the National Retail Federation, people expected to spend around $891 last holiday season on gifts, food, decor and other items.

You can save money in a few ways. Set a gift-buying budget around the holidays. Purchase gifts throughout the year to lower the financial burden. Also, be selective about who you’re buying gifts for. Or, craft your own gifts to save even more.

18. Look for Freebies

You’d be surprised at how much you can get for free or at a serious discount. If you need to get things like furniture or other household items, check sites like Craigslist, Buy Nothing Groups or Facebook Marketplace. You may need to give them a good wash or a new coat of paint, but you can get a lot for very little.

19. Downsize Your Car

If you’re paying a hefty amount on your auto loan, you could save money by downsizing your vehicle. Even lowering your payment by $100 or so can be a great way to boost your savings fund.

20. Pay Off Your Auto Loan

This might take longer than paying off your credit cards. Once you’ve done it, you’ll have hundreds of dollars each month for savings or other debts. Make sure there’s no prepayment penalty before you do this.

21. Avoid Meal Delivery

Meal delivery services, like DoorDash and Uber Eats, are pricey. Not only do you have the actual cost of food, but they also charge service fees and tips. If you want to eat out, sit in at the restaurant or pick up the food yourself.

22. Take Advantage of Free Activities

If you’re looking for something to do, check your town or county’s website for upcoming events. Many are free or cost very little to attend. The public library might also list events in your area.

23. Look for Sales and Discounts

Commercial holidays aren’t the only times of the year to score great deals. Keep an eye out for the smaller ones that occur throughout the year. Sometimes, you’ll need a coupon to get the deal. Others, all you need to do is bring the discounted item to the register.

24. Use Cash Back

Certain debit cards provide cash back on everyday purchases. You might not earn a ton, but every little bit helps. Put that cash back toward your next essential purchase (like groceries). Or transfer it over to savings.

25. Lower Your Entertainment Bills

Like your phone, you might find cheaper TV or internet providers in your area. Or you might be able to drop down to the next lowest-plan and save money that way. If you do switch, know that some providers will give you an initial rate that’s lower than what you’ll get later.

26. Limit Impulse Purchases

Treating yourself on occasion is one thing. But if you have a tendency to buy things impulsively, then you need ways to combat that.

Leave the credit and debit cards at home. Instead, bring a little bit of cash. Shop with a list. Remove your saved payment info from any online retailers.

If something appeals to you while shopping, leave it on the shelf until the very end of the trip. If you still truly want it, you’ll go back for it. If not, that’s money saved.

27. Invest

Keep investing simple when starting out. Contribute to an employer-sponsored retirement plan or an IRA, for example. Just set aside a small amount of cash each month for the plan and leave it at that. Increase your contributions as your income allows.

28. Consider a Balance Transfer Credit Card

If you’ve got a lot of credit card debt, moving it onto a balance transfer card might help. These cards often have a lower interest rate, which means more money saved in interest. Some even have a 0% APR intro period. If you pay off the entire balance during that period, you normally won’t be charged any interest.

29. Set Up Automatic Bill Pay

This won’t help you save money directly, but it can prevent late fees and damaged credit. This means indirect savings while staying on top of your bills.

30. Do Comparison Shopping

Comparison shopping can help you get the best deals on whatever you’re buying. For loans and credit cards, there are online marketplaces and tools that will do this for you. For everyday goods, check with different retailers in your area for their prices.

31. Take on a Side Hustle (Improve Your Income)

If you have the time and means, improving your income can be a great way to save more quickly. This might mean getting a side hustle or asking for more hours at work. Either way, put the extra cash toward your savings.

The Bottom Line

Now that you know how to save money, the next step is to get started. Remember, you don’t need to meet your savings goals tomorrow. What’s most important is taking small, consistent steps forward. If you stumble, don’t be too hard on yourself. Take a breath and then resume saving.

FAQ

How can I save $10,000 fast? 

Look for every conceivable way to lower expenses, even if that means getting roommates or downsizing your car. This will help you determine how much you can realistically save each month. For example, say you find a way to save $400 monthly. It’ll take you just over two years to save $10,000. If you can save $625, it’ll take under a year and a half.

How do I begin saving money? 

One of the easiest ways to start saving money is to set up automatic savings between your linked checking and savings accounts. Set a realistic number—say $50 a month—and increase it whenever you can. Use a high-yield savings account that earns more interest to help your money grow faster.

Is saving $100 a good monthly goal? 

Saving $100 monthly is a great way to quickly build a starter emergency fund. In fact, it should only take you about 10 months to save $1,000 that way.

What should I stop spending money on?

It depends on your needs, but canceling unused or redundant subscriptions is a good starting point. Other areas to stop spending money on include dining out, gym memberships and expensive holiday gifts.

Should I save or pay off debt first?

Generally, you should pay off high-interest debts like credit cards first. You should, however, have at least a small savings fund for emergencies.

Photo Credit: marchmeena29/ iStock.com

Key Terms

• High-yield savings account (HYSA) — A savings account, usually online, that pays far more than the 0.38% national average — often around 3.5% to 4%.

• Certificate of deposit (CD) — A deposit account that locks in a fixed rate for a set term, with a penalty for early withdrawal.

• Emergency fund — Cash set aside for surprises, ideally three to six months of expenses, often started with a $1,000 goal.

• Automatic savings — A recurring transfer that moves money to savings on a set schedule so you save without thinking about it.

• Balance transfer card — A credit card, often with a 0% intro APR period, used to move and pay down higher-interest debt.

• Budget — A plan tracking money coming in and going out that reveals how much you can realistically save.

• APY (annual percentage yield) — The yearly return on a deposit including compounding — the number to compare across savings accounts.

• Comparison shopping — Checking prices, rates and fees across providers before buying to get the best deal.

Sources

• FDIC — National Rates and Rate Caps (July 2026)

• IRS — Filing Season Statistics (2026)

• National Retail Federation — Consumers to Spend Second-Highest Amount on Record (Holiday Survey)

• whistleout — How Much Is the Average Cell Phone Bill per Month?

Summary generated by AI, verified by MoneyLion editors