How to Save Money: 23 Simple Tips

12 MIN READ | JUN 13, 2023

By Ramsey Solutions

Do you ever feel like no matter how hard you try it’s still impossible to find
ways to save money? You mean well and try to spend less, but
something always comes up. Life gets in the way—the car needs new tires,
the teenager needs braces, the house needs a new roof—and just like that,
saving money takes a back seat. Sound familiar?
The truth is, you don’t need everything to line up perfectly before you start
saving money. Spoiler alert: If you wait for the “right time” to roll around, it’s
never going to show up. The best time to start saving is right now.
The good news is, there are plenty of straightforward ways to save money and
breathe some fresh air (and fresh cash) into your budget. Here are 23 money-
saving tips to help you tweak your spending and get on the fast track to saving
money in no time.

23 Practical Ways to Save Money

1. Say goodbye to debt.
Monthly debt payments are the biggest money suck when it comes to saving.
Debt robs you of your income! So, it’s about time you get rid of that debt. The
fastest way to pay off debt is with the debt snowball method. This is where you
pay off your debts in order from smallest to largest. Sounds kind of intense,
right? Don’t worry—it’s more about behavior change than numbers. Once your
income is freed up, you can finally use it to make progress toward your
savings goals.

2. Cut down on your grocery budget.

Most people—after they do a budget—are shocked to find out how much
they’re actually spending at the grocery store each month. And if you’re the
average thrifty American family of four, you’re probably spending around
$966.1 Yikes! It’s so easy to walk through those aisles, grabbing a bag of
Oreos here and a few bags of chips there, and then top it off with the fun
goodies at the register. But those little purchases (aka budget busters) add up
quite a bit and end up blowing the budget every single month.
Save money on groceries by planning out your meals each week and taking a
good look at what you already have in your pantry before you head to the
store. Because why would you want to buy more of what you already have?
And if you really want to stick to your list—leave the kids at home.
Want to save money and time? Try online grocery pickup or delivery. Most major
grocery stores offer it these days (sometimes even for free), and it can save a
ton of money. Picking up your groceries gets rid of the temptation you
would’ve had when you caught a whiff of those freshly baked chocolate chip
cookies floating through the aisles. In other words, you’re forced to stick to
your list and avoid those impulse splurges.

3. Cancel automatic subscriptions and memberships

you don’t use.
Chances are, you’re paying for multiple subscriptions like Netflix, Hulu,
Spotify, gym memberships, trendy subscription boxes and Amazon Prime. It’s
time to cancel any subscriptions you don’t use regularly. And make sure you
turn off auto-renew when you make a purchase. If you cancel it and decide
you can’t go without it, subscribe again—but only if it fits into your new and
improved budget.
4. Buy generic.
Hands down, one of the easiest ways to save money is to give brand names
the boot. In most cases, the only thing that’s better about name-brand
products is the marketing. I mean, look at that box! The logo is so fancy! And
that’s about where it ends. Generic brands of medicine, staple food items (like
rice and beans), cleaning supplies and paper products cost far less than their
marked-up name-brand friends—and they work just as well too.

5. Cut ties with cable.

It’s no secret that cable prices are rising like crazy. The average cable TV bill
has grown 52% in the last three years!2 Here’s the good news: Cable isn’t the
only way to watch your favorite shows these days. Cut the cord and find out
how to save big with alternatives to cable like network apps and streaming
services.

Start budgeting with EveryDollar today!

But remember—don’t go subscription service happy here. Only sign up for the
streaming services you’ll actually use. If you sign up for everything out there,
you could end up actually spending more than cable!

6. Save money automatically.

Did you know that you can save money without thinking about it? Yup—you
can set up your bank account to automatically transfer funds from your
checking account into a savings account every month. If that sounds scary to
you, you can also set up your direct deposit to automatically transfer 10% of
each paycheck into your savings account. Boom!

7. Spend extra or unexpected income wisely.

When you get a nice work bonus (way to go!), inheritance or tax refund, put it
to good use. And when we say “good use,” we aren’t talking about adding that
fancy new stamp to your stamp collection or even just putting it in the bank to
camp out.

If you’ve still got debt in your life, you’ll be better off using those funds to pay
off your student loans or the balance on your credit card instead of stashing
that money away. If you’re debt-free, use those extra dollars to build up
your emergency fund—you know, for emergencies.

8. Adjust your tax withholdings.

Speaking of extra, unexpected income—if you get large tax refunds every
year, it’s time to adjust the withholding on your paycheck. This way you’ll bring
home even more money each month. Plus, you don’t want to give the
government any more of your money than you have to, right?

9. Reduce energy costs.

Did you know that you can save money on your electric bill just by making a
few tweaks to your home? Start with some simple things like taking shorter
showers (nope, we didn’t say fewer), fixing leaky pipes, washing your clothes
in cold water, and installing dimmer switches and LED lightbulbs.

While new, energy-efficient appliances are a great way to save money on your
electric bill, they’re expensive! But if you work it into your monthly budget, you
can save up and pay cash for those improvements over time.

10. Check your insurance rates.

No, really. Did you know people save an average of $700 when they have an
Endorsed Local Provider (ELP) check their insurance rates for them? $700! You
owe it to yourself to at least have them look things over for you and see what
savings they can dig up.

11. Pack lunch (and eat at home).

Get this—the average household spends about $3,030 on food outside of the
home each year.3 That’s $253 per month! Buying lunch a few times a week
may seem harmless in the moment (especially when your favorite restaurant
is walking distance from your office), but you can save quite a bit of money
just by packing a lunch.
Not only that but a lot of times you can buy a solid week’s worth of groceries
for the same price as two dinner meals out. Instead, prepare your food at
home and watch your savings pile up month after month.

12. Ask about discounts (and pay in cash).

You never know until you ask—and you should always ask. Next time you’re
getting tickets at a movie theater, museum or sporting event, check to see if
they have any special discounts for seniors, students, teachers, military or
AAA members. If not, never underestimate the negotiating power of cash!

13. Take advantage of your retirement savings plan.

If your employer offers a 401(k) match and you aren’t taking full advantage of it,
you’re missing out big time! Talk to your HR department to set up an account.
But remember, you should wait until you’re completely debt-free (except your
mortgage) and have a fully funded emergency fund of three to six
months before you start saving and investing for retirement.

14. Lower your cell phone bill.

If your monthly cell phone bill competes with your monthly grocery budget, it’s
time to find ways to cut back. Save money on your cell service by getting rid of
extras like costly data plans, phone insurance and useless warranties. And
don’t be afraid to haggle with or completely switch your provider! It might
require a little persistence and research, but the savings are worth it.

15. Try a spending freeze.

Don’t buy any nonessential items for a week—or even a month! Think about it
as a contentment challenge. While you’re at it, take inventory of what you’re
grateful for each day. This should help kick your “want-itis” in the pants!
Make your spending freeze work by prepping meals with the food you already
have, avoiding stores where you tend to impulse buy (did someone say Target
dollar spot?), and saying no to anything that isn’t a basic necessity.

16. DIY . . . everything!

Before you shell out the cash to pay for a new backsplash, bench or fancy
light fixture, think about doing it yourself! Usually, the cost of materials and a
simple Google or YouTube search will save you a ton of money on your latest
home project. Plus, you won’t have to pay someone to do something you can
most likely do yourself. But if you’re the type who can’t seem to hit the nail on
the head, you might want to ask a friend or neighbor for help so you don’t
have to spend money on new drywall.
Oh, and when you need to do some DIY work (or any kind of work), borrow
whatever tools you need from a friend or neighbor instead of going out and
buying it.

17. Skip the coffee shop.

Ouch. This one is painful—we get it! Notice we aren’t saying to cut coffee—
just to lower your coffee spending. Instead of spending $6–8 on that daily
latte, you can save money by just making your coffee at home—or at least
limiting the amount of times you hit that drive-thru and using coffee shop
hacks to save on each trip.

18. The library is your friend.

Before you click Add to Cart on that brand-new book, check your local library
to see if you can borrow it! Most libraries also have audiobooks and digital
copies of your favorite books for rent. It’s an easy way to get your reading in
without breaking the bank.

Bonus tip: Look online or visit your local used bookstore for major deals on
like-new or even well-loved books . . . for next to nothing!

19. Try a staycation.

When your goal is to save money, a vacation is possibly the worst thing you
could spend your money on. Instead of whisking your family off to the Greek
Isles, try being a tourist in your own city. Not only will this save you hundreds (or
potentially thousands) of dollars, but you can also explore your neighborhood
with fresh eyes and have some fun while doing it.

20. Use cash-back apps and coupons.

Nothing beats a good old-fashioned 20% off coupon when you’re buying
something. But did you know there are plenty of cash-back apps out there to
help your savings go even further? Check out Ibotta, Rakuten and Honey (a
browser extension).

21. Refinance your mortgage.

Here’s the deal: This is a long-term money saver. If you’ve got a 30-year
mortgage, you’re spending a ton on interest over the life of that loan.
Refinancing to a 15-year fixed-rate mortgage will save you thousands of
dollars in the long run. Reach out to one of our RamseyTrusted Real Estate
Agents to see if a refinance is worth it for you.

22. Sell everything (that doesn’t bring you joy).

Marie Kondo has the right idea. Declutter the things in your home that you
don’t need and are willing to let go of for the sake of your financial future. That
vintage chair your aunt gave you? Sell it. That crystal vase you found at an
antique shop? Sell it. You’d be surprised at how much clutter you have in your
home (that you don’t even use or think about). And the cash you can make on
those things can be the difference between living paycheck to paycheck
or not.

23. Learn the power of “no” (or “not now”).

We live in a world of instant gratification. Food from our favorite restaurants
can be at our door in an hour or less. The show you want to binge is right
there at the ready. The ads on social media say you need this, that and the
other. Right now. We’re a couple clicks away from satisfying our desires for
nearly anything!

But if you can delay some gratification by using the magic of “no” (or “not
now”)—you will save so much money. It’s a huge mindset shift to build better
spending habits overall. And it’s another way to become a more content
person. Savings with a side of mental and emotional health? Yes, please!

How to Start Saving Money—Right.

Now.
You’ll only start saving money when you learn healthy money habits and let
your future needs be more important than your current wants—aka when you
make saving money a priority. So do it! You can stop the cycle of living
paycheck to paycheck with a simple secret: Make a zero-based budget before
the month begins.
A budget is all about being intentional. It helps you create a plan so you can
see where your money is going and find out how much you can actually save
each month. When you make a zero-based budget, you’re giving every single
dollar a name—or assigning it a job to do—before you save or spend it.
Remember: It really doesn’t matter how much money you make—what
matters is how you spend and save the money you make.
Need help staying on top of your spending? Get our free budgeting
app, EveryDollar. It's the best way to keep track of all your expenses (and your
savings) in one place!
You can do this! Starting today, you can save more and spend less by using
these 23 tips to make 2023 your best year with money yet.
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ABOUT THE AUTHOR

Ramsey Solutions
Ramsey Solutions has been committed to helping people regain control of their money, build
wealth, grow their leadership skills, and enhance their lives through personal development since
1992. Millions of people have used our financial advice through 22 books (including 12 national
bestsellers) published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts,
which have over 17 million weekly listeners. Learn More.

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