How To Save Money: 31 Practical Tips To Build Your Savings

You can save money even on a tight budget. It just takes starting small, staying patient and being consistent.

Setting aside even $10 to $50 a month adds up over time, and you have more options than you might think. Here are 31 ways to start.

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: Many high-yield savings accounts currently pay around 3.5% to 4% annual percentage yield (APY), far above the 0.38% national savings average the FDIC reported as of Sept. 21, 2026.

• Tackle high-interest debt first: Paying down credit cards frees up money that would otherwise go to interest, making it easier to save at the same time.

• Small cuts beat big, unsustainable ones: Canceling an unused subscription or switching providers tends to stick longer than an extreme budget you can't maintain.

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. A monthly budget can 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. Many HYSAs currently offer rates from about 3.5% to 4% APY, while normal savings accounts often pay below 1%.

If you want a concrete example, MoneyLion Save currently pays up to 3.88% APY with a MoneyLion One membership or 2% APY without one, and it skips minimum deposit and balance requirements altogether, so your savings can start earning right away.

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 account, too. The main difference between it and a typical savings account is that your money is generally locked in for a set term, and withdrawing it early usually triggers a penalty under the account's terms, though some banks offer no-penalty CDs.

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 options they offer for automatic savings transfers. Some will let you set it up so a percentage of each paycheck goes straight into 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 it off if possible. Make sure you have a small emergency fund first so you can handle unexpected 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 buy the items on that list. While you're at it, cut back on eating out 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 refund for the 2026 filing season, covering most tax-year 2025 returns, was about $3,275, according to the IRS. When you get yours, resist the temptation to spend it. Instead, put a sizable chunk of it toward savings.

If you want to reward yourself, consider treating yourself to something small. Spending $50 or even $100 of a refund that size isn't something to feel guilty about.

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, and use an online loan calculator so you can see the true monthly and total cost of credit, before committing to anything.

MoneyLion offers a service to help with this part: Based on the information you provide, you can get matched with personal loan offers for up to $100,000 from top providers, then compare rates, terms and fees side by side before choosing the best one for you.

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 sticking with a car that still runs rather than trading it in for a newer model. It's not always comfortable, but living below your means can meaningfully ease financial pressure.

10. Set Savings Goals

Start small with your savings goals. Tell yourself you want to save $100, then set smaller goals to help you get there. For example, you might set aside $25 a month for four months to reach it. Once you've hit the first 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're saving can help keep you motivated.

11. Build an Emergency Fund

A good amount to start with is $1,000. Once you've got that, the goal is to work toward 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 it. An emergency fund held in a HYSA can help your money grow faster while it sits.

12. Refinance Your Mortgage

If you've got a mortgage with home equity built up, refinancing could lower your monthly payment. It might even get you a reduced interest rate, though it can extend your repayment term, so weigh the full cost before deciding.

13. Cancel Your Unused Subscriptions

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

14. Change Your Phone Plan

Phone plans vary widely by provider and data needs, and switching to a budget carrier can meaningfully cut your bill. For example, Consumer Cellular's entry-level plan currently starts at $20 a month for a single line with limited data, well below many major carriers' standard plans. Compare your current plan's cost and data usage against a budget alternative before you switch.

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.

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms and fees from different lenders and choose the best offer for you.

16. Buy 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 pricier goods.

17. Be Selective About Buying Gifts

The holidays are an expensive time of year. According to the National Retail Federation, consumers expected to spend about $890 per person during the 2025 holiday season on gifts, food, decor and other items.

You can save money in a few ways: Set a gift-buying budget ahead of the holidays, buy gifts throughout the year to spread out the cost, be more selective about who you're buying for, or craft your own gifts to save even more.

18. Look for Freebies

You'd be surprised how much you can get at no cost or a steep discount. If you need furniture or other household items, check sites like Craigslist, Buy Nothing groups or Facebook Marketplace. You may need to give an item 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 meaningfully boost your savings.

20. Pay Off Your Auto Loan

This might take longer than paying off credit cards, but once it's done, you'll have an extra chunk of money each month for savings or other debts. Just make sure there's no prepayment penalty before you do this.

21. Avoid Meal Delivery

Meal delivery services, like DoorDash and Uber Eats, add up fast. Beyond the cost of the food itself, they also charge service fees and tips. If you want to eat out, sit down at the restaurant or pick up the food yourself instead.

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 cost little or nothing to attend. Your local public library may also list events in the area.

23. Look for Sales and Discounts

Major holidays aren't the only times of year to score deals. Keep an eye out for smaller sales that occur throughout the year. Sometimes you'll need a coupon to get the deal. Other times, 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 buys. You might not earn a ton, but every little bit helps. Put that cash back toward something you need, like groceries, or transfer it to savings.

25. Lower Your Entertainment Bills

Like your phone plan, you might find cheaper TV or internet providers in your area, or be able to drop to a lower-tier plan and save money that way. If you do switch, know that some providers offer an introductory rate that's lower than what you'll pay later.

26. Limit Impulse Purchases

Treating yourself occasionally is one thing. But if you tend to buy things impulsively, you need ways to counter that. Leave the credit and debit cards at home and bring a little cash instead. Shop with a list, and remove your saved payment info from online retailers.

If something appeals to you while shopping, leave it on the shelf until the end of the trip. If you still want it, 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. Set aside a small amount of cash each month for the plan and leave it at that, then 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 come with a lower interest rate, which can mean more money saved on interest, and some even offer a 0% introductory annual percentage rate (APR) period.

If you pay off the entire transferred balance during that period, you typically won't be charged interest on it. Keep in mind that balance-transfer fees often apply, and anything new you buy on the card may start accruing interest separately, so read the terms before you transfer anything.

29. Set Up Automatic Bill Pay

This won't help you save money directly, but it can prevent late fees and damaged credit, which can save you money indirectly and keep you current on 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, online marketplaces and tools can do this for you. For everyday goods, check with different retailers in your area for their prices.

31. Take on a Side Hustle To 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 picking up a side hustle or asking for more hours at work. Either way, put the extra cash toward your savings.

Why It Matters

Saving money isn't just about one big change. It's usually a handful of small, repeatable habits, like automating a transfer or trimming a subscription, that compound over months and years. The tips that stick are the ones that fit your actual budget rather than an ideal one, so pick a few from this list and build from there.

Common Money-Saving Mistakes To Avoid

• Setting an unrealistic goal: Aiming to save hundreds of dollars a month right away can be discouraging if your budget can't support it yet. Start smaller and build up.

• Skipping automation: Relying on willpower alone to transfer money each month is harder than setting up an automatic transfer once.

• Trying every tip at once: Taking on all 31 changes at once often leads to burnout. Pick two or three that fit your life first.

• Leaving savings in a low-rate account: Letting cash sit in a traditional savings account earning well under 1% leaves money on the table compared to a HYSA.

The Bottom Line

Now that you know how to save money, the next step is to get started. You don't need to meet your savings goals tomorrow. What matters most is taking small, consistent steps forward. If you stumble, don't be too hard on yourself. Take a breath and start saving again.

FAQ

Here are quick answers to common questions about saving money:

How can I save $10,000 fast?

Look for every possible 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 just over two years to save $10,000. If you can save $625 a month, it'll take under a year and a half.

How do I begin saving money?

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

Is saving $100 a good monthly goal?

Saving $100 a month is a great way to quickly build a starter emergency fund. In fact, it should only take 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 worth cutting include frequent dining out, unused gym memberships and expensive holiday gifts.

Should I save or pay off debt first?

Generally, you should prioritize paying off high-interest debt, like credit cards, first. That said, it's worth keeping at least a small savings cushion for emergencies while you do.

Key Terms

• High-yield savings account (HYSA): A savings account, usually online, that pays far more than the 0.38% national average (as of Sept. 21, 2026), often around 3.5% to 4% APY.

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

• 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 having to think about it.

• Balance transfer card: A credit card, often with a 0% introductory 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.

Summary generated by AI, verified by MoneyLion editors

Sources

• FDIC: National Rates and Rate Caps

• IRS: National Taxpayer Advocate 2026 Mid-Year Report to Congress

• National Retail Federation: Consumers to Spend Second-Highest Amount on Record (2025 Holiday Survey)

• Consumer Cellular: Current Plans

• Consumer Financial Protection Bureau: What Is a Balance Transfer Fee?

Photo Credit: marchmeena29/ iStock.com